Perth, Oct 2, 2008 AEST (ABN Newswire) - Otto Energy Limited (ASX:OEL)(PINK:OTTEF) and joint venture partner and the Operator AIM-listed Ascent Resources Plc have confirmed the drilling schedule for the Gazzata-1 onshore gas exploration well in the Cento - Bastiglia permits of Italy's highly prospective Po Valley. The drilling of the Gazzata-1 well is now planned to commence in January 2009.
The Gazzata-1 well is to be drilled using the new HH-200 drilling rig of Perazzoli Drilling. This rig is currently drilling its first well on a third party contract in southern Italy where its performance exceeds expectations, and subsequently it is available earlier than planned.
Ascent Resources has advised Otto that the Joint Venture has the flexibility to swap drilling slots, and as such, it is now planned for the rig to drill two other third party wells before mobilising to the Gazzata-1 location in January 2009.
By swapping the slots the drilling of the well in Italy will then comfortably fit in with the commencement of cash flow at Otto's Galoc Oil Field in the Philippines.
Otto is earning a 50% working interest via the funding of Gazzata-1 well and a second well if Gazzata-1 is a significant discovery. There is a cap on the expenditure for both the Gazzata-1 and the second well, above which the contribution is 50/50.
The Gazzata-1 well targets a seismically defined gas exploration over 8 square kilometres in area and which is c.2400 m deep in Pliocene aged formations.
CEO of Otto Energy Alex Parks said, "We look forward to the drilling of Gazzata-1 which we believe to be highly prospective, and we are fortunate to have the flexibility to swap the rig slot to fit in with our ideal schedule."
Contact
Jill Thomas
Investor Relations Manager
Tel: +61 (8) 6467 8800
Mobile: +61 439 440 016
Email: thomas@ottoenergy.com
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