Perth, Jan 5, 2009 AEST (ABN Newswire) - Otto Energy Limited (ASX:OEL)(PINK:OTTEF) through its wholly owned subsidiary Edirne Energy Ltd ("Company" or "Otto"), is pleased to announce that the Ikihoyuk-2 development well in the Edirne Licence in Turkey is expected to be spudded on 7 January 2009.
The objective of the drilling programme, undertaken in conjunction with Joint Venture partners Incremental Petroleum and Petraco, is to confirm and develop the western extent of gas bearing Danismen and Osmancik reservoirs within the Ikihoyuk structure.
In 2008, the Joint Venture had considerable drilling success and the Ikihoyuk-2 well is designed to produce gas from a proven reservoir defined by the 2008 drilling campaign.
The gas fill has been proven by the discovery well Ikihoyuk-1, which flowed at dry gas rates of up to 3.8 MMscf/d. The reservoir targets are sandstone units of the Osmancik and Lower Danismen Formations. Additional gas bearing reservoirs may exist at shallower levels.
The current planned total depth is approximately 500 metres. The well will be drilled with Incremental's rig and is expected to take approximately 12 days to drill. Both wells would then be tied back to a central facility.
Commercialization of the Edirne gas project is progressing, with first gas sales anticipated in the second half of 2009. Negotiations are ongoing with three substantial Turkish parties to purchase the gas. Bids have been received for all long lead items.
The Joint Venture has resolved that the two exploration wells initially planned to be drilled in this drilling programme be deferred. The two deferred exploration wells are not required for the first planned phase of production. A 100 sq km 3D seismic survey initially planned for mid 2009 has also been deferred.
The Company will provide further ASX announcements as results from the current drilling programme becomes available.
Joint Venture Interests in the Edirne Permit:
Otto Energy (Edirne Energy Ltd) 35%
Incremental Petroleum (PEMI) 55% (Joint operator)
Petraco Petroleum 10% (Joint operator)
For more information about Otto Energy Limited visit www.ottoenergy.com
Contact
Jill Thomas
Investor Relations Manager
Tel: +61-8-6467-8800
Mobile: +61-439-440-016
Email: thomas@ottoenergy.com
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