Otto Energy Limited (ASX:OEL)
Perth, July 9, 2009 AEST (ABN Newswire) - Otto Energy Limited (ASX:OEL)(PINK:OTTEF) advises that Galoc Production Company (GPC) has entered into an agreement to acquire an additional 1.55% working interest in the Galoc Oil Field (Service Contract 14 Block C1).
This acquisition increases GPC's working interest in the Galoc Field from 58.29% to 59.84%. As a result Otto's indirect interest in the Galoc Project will increase by 0.49% to 18.77%.
The acquisition follows the decision by GPC, to acquire the interests of minority partners, PetroEnergy Resources Corporation and Alcorn Gold Resources Corporation, along with a number of the other partners in the project. The completion of acquisition of the increased working interest is subject to the execution of the formal agreements by all participating joint venture partners.
OPERATIONS UPDATE
The Company also provides an update on its drilling exploration programs and operations at Galoc.
Philippines - SC14C Licence - Galoc Oil Field
FPSO contractor, Rubicon, has mobilised equipment to the Galoc field to reinstate production. A further offtake from the FPSO occurred this week.
Turkey - Edirne Licence
The Kuzey Ikihoyuk-1 exploration well is currently at 119.5 metres (m) and setting casing. After installing the Blow out Preventer (BOP), the Operator will drill ahead.
Total depth of the well will be approximately 450m.
---------------------------------------Name of well Kuzey Ikihoyuk-1Spud date 1 July 2009Depth of well Depth ~450mOEL beneficial interest 35%---------------------------------------
Argentina - Santa Rosa Licence
The Operator, Oromin Explorations Ltd (Oromin) has advised that mobilisation of the drilling rig for the exploration well 'OLE.MD.SREX2001' on the Santa Rosa Dome Prospect is now underway. After spudding, the Operator expects that it will take approximately 7 to 10 days to reach target depth.
---------------------------------------Name of well OLE.MD.SREX2001 (Santa Rosa)Spud date TBADepth of well ~1,300mOEL beneficial interest 32.5%---------------------------------------
Otto will continue to update the market on a weekly basis during its exploration drilling programs.
Contact
Jill Thomas
Investor Relations Manager
Tel: +61-8-6467-8803
Email: thomas@ottoenergy.com
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