The sale of 30% of the Edirne License and 60% each of Catalca and Ortakoy Licenses to Incremental Petroleum is now complete and the US$5.5 million in funds have been received. The funds will be used to pay for Otto's share of the ongoing exploration programs and appraisal and development of the existing discoveries to first gas sales.
The JV is acquiring wellheads, casing and tubing to allow for a five well exploration drilling campaign scheduled to commence in December 2007.
The Joint Venture in the Edirne License in Turkey consists of Merty Energy Ltd (Joint Operator) 10%;Petrako Ltd (Joint Operator) 10%; Otto Energy Ltd (ASX:OEL) 35%; Incremental Petroleum Ltd (ASX:IPM) 45%.
Commenting on the news Alex Parks, CEO of Otto Energy, said "Turkey represent Otto's nearest term cash flow asset. Otto is pleased to have now received all the funds from Incremental as scheduled, to leave us fully funded in Turkey through the ongoing exploration programs and for appraisal and development costs required to get us to first production in 2008."
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