By Alena Mae S. Flores

Otto Energy Ltd. has put on hold further developments at the Calauit oil field in offshore northwest Palawan until a new investor comes in and oil prices rebound in the world market.

Otto Energy chief executive Alex Parks said the development of service contract 50, which covers the Calauit oil field, had been deferred until it became feasible

Otto Energy sent out farm-in fliers in July last year to investors interested in teaming up with the company to conduct an appraisal of the Calauit oil field. It has not forged any agreement to date.

The company holds an 85 percent stake in the service contract.

The Calauit oil field is located in 80 meters of water depth in offshore northwest Palawan. Two discovery wells made in 1991, Caluit-1 and Calauit-South-1, flowed up to 7,000 and 3,286 barrels of oil per day, respectively.

Otto Energy said simulations works at the field indicated an oil recovery of 10,000 barrels of oil per day from two horizontal wells.

?For this scenario, the cumulative production after three months is one million barrels of oil,? the company said.

Otto Energy said the field is estimated to contain around 13 million to 67 million barrels of oil.

The company had planned to start appraisal drilling this year in anticipation of a joint venture partner by the second half of the year.

Otto Energy said drilling operations for SC 50 is scheduled between 2010 and 2012.

Otto Energy also holds a 25 percent stake in SC 55, which covers the Marantao prospect located near the Malampaya oil and gas field.

The Marantao prospect is estimated to contain 1.812 trillion cubic feet of gas and 567 million barrels of oil. Seismic data were collected by various groups from 1970 to 1990, but no wells were drilled.

Otto Energy originally held an 85 percent stake in SC 55 but it decided to enter into a ?conditional heads of agreement? with BHP Billiton.

BHP Billiton paid Otto Energy $150 million for a 60 percent stake in the SC.

BHP Billiton, as operator of SC 55, will drill and cover the cost of two deepwater wells, which will be drilled starting in 2010.

The company also holds 31.38 percent of Galoc Production Co., operator of the Galoc oil field.