- Otto Energy (OEL) has seen the first oil produced at its Green Canyon 21 (GC 21) Bulleit field
- The well produced its first lot of oil on the morning of October 15 and delivered first sales to the pipeline later that day
- Moving forward, production from the field will be slowly increased during an initial one-to-two-week period
- GC 21 oil and gas flows through to the GC 18 platform, where it is processed and delivered into regional oil and gas sales pipeline
- Otto is in the grey on the market this afternoon and is trading for 0.9 cents per share
Otto Energy (OEL) has seen the first oil produced at its Green Canyon 21 (GC 21) Bulleit field.
The well produced its first lot of oil on the morning of October 15 and delivered first sales to the pipeline later that day.
Operator Talos Energy, have planned a well production ramp-up strategy where production will slowly increase in 1000 barrels of oil per day increments until the well reaches a steady-state production rate.
Otto Energy has a 16.67 per cent working interest and 13.33 per cent net revenue interest in the GC 21 lease and project.
The project was developed via a 10-mile subsea tieback to the Talos-operated GC 18 Whistler platform. Production from here is being processed and then delivered into regional oil and gas sales pipeline.
A subsea tieback is when there is a connection between a new oil and gas discovery and an existing production facility.
Product sales from GC 21 have been secured by long term production handling, transportation and sales arrangements.
CEO and Managing Director, Mike Utsler, says the development and start up of the Bulleit field is a significant milestone for Otto.
“The field and its production form an important component of our robust base business in both the offshore and onshore Gulf of Mexico, where we now produce oil and gas from three excellent fields,” he said.
“We look forward to updating the market further as the well ramps up production to its expected steady-state level,” he added.
Otto is in the grey on the market this afternoon and is trading for 0.9 cents per share at 12:59 pm AEDT.