Otto Energy to farm-in with 15% stake in SC55; hires Maersk Venturer drillship
PERTH, Australia -- Otto Energy Philippines, a subsidiary of Otto Energy, has signed a farm-in agreement with Red Emperor Resources to earn a 15% working interest in SC55, offshore the Philippines.
Red Emperor has agreed to farm-in to SC55 and earn a 15% working interest by participating in the drilling of the Hawkeye-1 exploration well.
This farm-in, along with the $24.5 million funding committed by BHP Billiton and the expression of interest received in January 2015 from PNOC-EC for a further 15% working interest, ensures that Otto is fully funded聽and has mitigated significant financial risk associated with the drilling of Hawkeye-1.
Otto, through its wholly owned subsidiary Otto Energy Investments (operator of SC55), has also executed a Letter of Intent with Maersk Drilling to secure the Maersk Venturer ultra-deepwater drillship to drill the Hawkeye-1 exploration well.
The Maersk Venturer was commissioned in 2014 and was built at the Samsung Heavy Industries yard in Korea. The vessel is one of the newest drillships in the world, capable of operating in up to 3,600 m of water, with dual drilling derricks, high capacity mud pumps and bed space for 230 personnel.
Detailed contractual arrangements with Maersk Drilling will be finalized in the coming weeks.
All required long lead items have now been procured and stored in yards in Labuan, Malaysia. The drilling of Hawkeye-1 is expected to commence in the third quarter of 2015.