"Area 8 is considered to be very prospective and holds potentially significant value for Otto, particularly if we are successful in the adjacent SC51 block," Otto chief executive Alex Park said.

"We have secured the permit on a minimal work program commitment, but plan to execute a proactive exploration program based on the technical merits of the area. Otto now occupies a key position in the oil and gas prospective East Visayan Basin."

NorAsian and its local partner TransAsia Oil & Energy have committed to carrying out data gathering and reprocessing of existing 2D seismic data, 2D and 3D seismic as well as one firm well.

SC 69 lies between the Islands of Cebu, Bohol and Leyte and covers 7040 square kilometres of the Visayan Basin.

It is already covered by about 3000km of 2D seismic and an active petroleum system has been inferred through abundant onshore oil seeps and seismic-supported direct hydrocarbon indicators in prospects in the area, according to Otto.

More than 20 potential structures have also been mapped with the likelihood of additional structures yet to be identified.