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Otto said it expected to receive $30 million revenue from Galoc in 2008, which would pay for its longer-term exploration activities in the region.
"The Galoc Field acquisition is an excellent strategic fit for Otto's Philippines portfolio and further strengthens the company's vision to becoming a significant oil and gas producer," chief executive Alex Parks said.
Otto will fund the acquisition by placing 226 million new shares at 30c each to raise $67.8 million in two tranches.
Otto will receive the stake via the acquisition of a 31.38% shareholding in Galoc Production Company, which is operator and holds a 58.29% stake in the development located in offshore Palawan Basin service contract SC14C.
The shares in GPC are held by Team Oil and Cape Energy (each with 15.69%) and Vitol (68.62%).
First oil is expected from Galoc in April.