Rig: Ocean Patriot

Galoc Phase II rig demobilisation and commencement of offshore subsea installation

During the period from 0600 hours (AWST) on 21st October 2013 to 0600 hours (AWST) on 4th November 2013, the Galoc-6H well was secured and the drilling rig Ocean Patriot pulled anchors, demobilised to Singapore and is now off-hire. This marks the successful completion of all drilling activities of the Phase II development. The construction vessel arrived in the Galoc field area on 1st November 2013 and has commenced installation activities to connect the Galoc-5H and Galoc-6H wells into the FPSO Rubicon Intrepid. It is expected that these offshore installation activities will be completed before the end of November 2013 resulting in the first oil being produced from the FPSO Rubicon Intrepid. A further update will be provided upon the completion of the installation and commissioning activities in the field.

Galoc-5H well successfully tested

During the period from 0600 hours (AWST) on 9th October 2013 to 0600 hours (AWST) on 16th October 2013, the subsea tree installation, well clean-up and flow test operations were successfully completed. The Galoc-5H well has successfully flowed oil to surface from the Galoc Clastic Unit (GCU) with the well flowing at a rate of 6,300 barrels per day (“bopd”) on a 64/64” choke setting with a flowing tubing pressure (“FTP”) of ~830 psi. Operations were conducted via the drilling rig “Ocean Patriot” and oil was flared at the location. The initial oil deliverability potential from Galoc-5H under normal field operating conditions is expected to be between 8,000 and 12,000 bopd with final operating rates to be set according to optimum facility and reservoir management constraints. The results from this flow test are in line with the forecast overall field production rate of 12,000 bopd to be delivered once Phase II is brought in to production in late November 2013. The forward plan is to move to Galoc-6H, install the subsea tree and commence clean-up and flow testing prior to releasing the rig.

Successful conclusion of the Galoc-5H and Galoc 6-H drilling phase

Otto Energy Limited (“Otto”) (ASX:OEL), as operator of the producing Galoc oilfield joint venture offshore the Philippines, provides the following update on the Galoc-5H and Galoc-6H drilling campaign in SC14C, part of the Galoc Phase II development project approved in 2012. During the period from 0600 hours (AWST) on 11 September 2013 to 0600 hours (AWST) on 18 September 2013, drilled the G-5H well 8½” hole horizontally to a final total depth of 4,497 metres and commenced running the completion liner and assembly. This marks the successful conclusion of the major drilling activities of the Phase II project with remaining drilling rig based operations being for well completions and installation of subsea trees. The G-5H and G-6H wells have been drilled to a combined total of 3,177m through horizontal reservoir section within which a significant 1,645m of net oil pay has been encountered. Data recorded during drilling shows high reservoir permeability in both wells which suggests good production deliverability will be achieved. Well deliverability will be confirmed when the wells are flowed to surface in the coming weeks for the well clean-up operations. Planned upgrades to the FPSO Rubicon Intrepid, which will process the additional Phase II production, have also been successfully completed this week according to schedule. Delivery of subsea equipment and mobilisation of installation vessels are all on schedule to allow final tie-in work to be completed consistent with planned first oil from the G-5H and G-6H wells in November 2013.

Galoc Phase II commences drilling

Otto Energy Limited (“Otto”) (ASX:OEL), as operator of the producing Galoc oilfield joint venture offshore the Philippines, provides the following update on the Galoc-5H and Galoc-6H drilling campaign in SC14C, part of the Galoc Phase II development approved in 2012. Otto is pleased to advise that at 1300 hours on 4 June 2013, the Ocean Patriot semi-submersible drilling rig commenced drilling the Galoc-5H and 6H development wells. Drilling is expected to take approximately 115 days including the flowing of the wells for clean-up. The forward plan is to drill the 36" (914 mm) hole to 392 metres and install the 30" conductor prior to drilling the 171/2" (444 mm) hole to 950 meters.

Ocean Patriot rig has commenced mobilisation to the Galoc oil field for the Phase II development

Nido Petroleum Limited (‘ASX:NDO’ or ‘the Company’) is pleased to advise that the Operator of SC 14C1 (Galoc Production Company W.L.L, a wholly owned subsidiary of Otto Energy Ltd, ASX: OEL) has informed the Company that the Ocean Patriot rig has commenced mobilisation from Singapore and is currently under tow with the tug Pacific Battler. The rig is expected to arrive at the field location in early June. Phil Byrne, Managing Director commented, “The departure from Singapore of the ‘Ocean Patriot’ rig to the Galoc oil field in SC 14C1 to commence the Phase II development project is a major milestone for this project and for the Company. I am very pleased to see the Phase II project enter the operational phase of its life cycle which will result in the drilling of two new additional horizontal development wells into the field. Galoc is the company’s cornerstone asset, and the Phase II development project is strongly aligned with the company’s strategy of focusing on building its reserves and production base and I look forward to the commencement of Phase II production in the fourth quarter this year”.

Keppel FELS adds US$300 million to order book with new contracts

Keppel FELS Ltd (Keppel FELS), a wholly-owned subsidiary of Keppel Offshore & Marine (Keppel O&M), has secured a contract to upgrade the semisubmersible Ocean Patriot for Diamond Offshore. Keppel FELS will undertake the fabrication and installation of four 24-foot diameter stability columns and new lower hull inboard pontoon sponsons as well as upgrade the living quarters. Work on Ocean Patriot is expected to commence in June 2013 with redelivery at end 2013. When completed, the semisubmersible will be chartered to Shell for work at the Fram field in the UK North Sea.