Otto Energy (ASX: OEL) and its partners have started oil production from the Galoc Phase II development in the Palawan Basin offshore Philippines.
Initial production at the Galoc oil field is 14,500 barrels per day though the four well system is expected to be operated at 12,000bpd of oil going forward.
This is more than double the production of 4,500bpd prior to the addition of the Phase II wells.
Galoc has produced more than 11 million barrels of oil since it was commissioned in 2008. Ultimate recovery from the field, with the addition of Galoc-5H and 6H, is expected to be approximately 25 million barrels of oil with end-of-field life extended beyond 2020.
For Otto, which holds a 33% operating interest in the project, the success of the Phase II development not only validates its credentials as an operator but will also deliver a major increase to its cash flow.
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