Otto Energy announced that an “Evaluation of Prospective Resources” report on the Santa Rosa Exploration Permit located in the Cuyana Basin in the Province of Mendoza, Argentina, has been released by Oromin Explorations Ltd.
Oromin commissioned the evaluation report which was conducted by Aeon Exploration Inc. of Canada, an independent petroleum valuation consultant. The independent report concluded that:
• The unrisked probabilistic oil resource potential for the Santa Rosa dome ranges from 45,167,000 barrels of oil to 380,800,000 barrels of oil; and
In November 2005, Otto and Oromin (Operator) agreed to a farm-in arrangement, whereby Otto will initially earn a 32.48% working interest in the Santa Rosa Exploration Permit through funding the first US$1.4 million of a 2-well drilling program.
Otto is also entitled to acquire an additional interest of 8.76% in the Permit from Oromin, to increase its interest to 41.24% by incurring further expenditure of US$897,381.
Otto’s participation is subject to the completion of due diligence to Otto’s satisfaction and the finalization of a joint venture agreement, which is close to completion.
The Operator expects drilling to commence in Q1, 2009.
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