Drilling Ops Underway at Otis' Comanche HZ Well

Otis Energy Limited announced that drilling of the first well, the Nocona Prospect Test Well, at its Comanche Horizontal Shallow Oil project (12.5% Working Interest (9.375% NRI)) located in North Central Texas is underway.

The Test Well is currently at a depth of 1,574 feet (479 meters) of the vertical section of the well and is expected to take 22 to 25 days to complete before the lateral section of the well commences. The Comanche Project targets the Marble Falls Limestone formation (MFL) at a vertical depth of approximately 5,100 feet (1,554 meters). Wells are drilled horizontally approximately 2,500 feet (762 meters) initially targeting oil and natural gas liquids produced from existing vertical completions surrounding the Comanche project.

Recent drilling activity continues to indicate the MFL is conducive to horizontal drilling and modern completion technology, and targeting porosity lenses enhanced by micro-fracturing should yield the best results. Based on conservative 160 acre drainage, up to 40 wells may be required to fully develop the Comanche Project. Considering recent well results, 250,000 barrels of oil equivalent (boe) per well is obtainable and implies recoverable reserve potential of up to 10,000,000 boe (close to 1,000,000 boe net to Otis.) Secondary objectives in the Project Area include the deeper Ellenburger and Mississippian carbonates, shallower Atoka conglomerates, Caddo and Strawn formations.

"The Comanche project is a liquids rich limestone play utilizing horizontal drilling technology within a proven oil field containing substantial vertical completions and production," said Barnaby Egerton-Warburton Otis Managing Director. "Successful efforts in these initial Comanche wells could see repeatable development drilling for years to come from existing cashflow generated from the project."