As a result, Otto Energy – previously Ottoman Energy – now controls one of the largest publicly owned acreage holding in offshore Philippines, covering a total area of more than 15,000 square kilometres (3.7 million acres).

This acreage comprises a 100% interest in SC50 (Calauit oil field), an 80% interest in SC51 (offshore Cebu) and an 85% interest in SC55 (Palawan ultra-deep water).

Otto managing director Dr Jaap Poll said the 100% acquisition of NorAsian had positioned his company as a “major player in the Philippines”.

“The company expects that it will now be able to finalise the long-term drilling rig-cum-production platform procurement requirements to bring the Calauit oil field in production towards the end of 2007,” he said.

“We are aiming to firm up soon the current non-binding letter of intent on a bare-boat charter for a newly built multi-purpose semi submersible (MPSS) rig.”

To fund the acquisition, Otto issued 15 million shares and 7.5 million listed options to raise $A4.36 million, together with a cash payment of $2.5 million.

Otto said the securities were subject to a voluntary escrow period of 12 months unless a formal takeover offer is made for Otto shares or the Calauit 1B well is re-entered.

Late last year, Otto and its overseas joint venture partners – AustralAsian and RGA Resources – merged their Philippine petroleum assets to create NorAsian Energy. Then in June, Otto announced it was acquiring the 50% shareholding in NorAsian it did not already own.