Otto Energy Limited (OEL) is pleased to announce that commerciality has been declared at the Galoc Oil Field and that the Company is now debt‐free. The Company also provides an update on its exploration and production operations.
The extended testing phase at Galoc has concluded and commerciality has been declared. The GPC project debt for the Galoc field has been fully repaid totalling over US$40 million in repayments from oil sales. Otto’s shareholder and director loans were fully repaid using funds raised from its recent capital raising. Otto currently has approximately A$13 million in cash. Otto now expects to receive regular dividend payments from GPC from production net proceeds.
Under the terms agreed with the Philippine Department of Energy for the Galoc project, GPC on behalf of the Galoc Joint Venture has issued a formal “Declaration of Commerciality” following the completion of the extended testing period. The data obtained during the extended test phase has proved invaluable in providing sufficient confidence of the reservoir performance to justify the commencement of long term production. As a consequence of the declaration, the fiscal terms for the Galoc project revert to the standard terms of Service Contract 14.
Tags: Loan repaid, OEL, Oil and Gas, Otto Energy
