Ottoman Energy Begins Drilling in Turkey

Ottoman Energy has spud its first exploration well, Bati Umur – 1, in the gas prospective Thrace Basin in Turkey.

The Bati Umur prospect is located in the Edirne License 3839 in which Ottoman has a 65% interest.

Bati Umur – 1 will be drilled to approximately 1,000 m with the primary target zones expected around 400m and possible secondary objectives lower down. Drilling is scheduled to take approximately 14 days to reach total depth.

The Bati Umur prospect has a positive geochemical anomaly at surface indicative of mini gas seepage and strong amplitude anomalies on seismic ("direct hydrocarbon indicators") coinciding with interpreted reservoir intervals.

A second exploration well, Arpaci – 1, will be drilled "back to back" with Bati Umur – 1 on a nearby, but separate, prospect.

Ottoman has completed a 12 month detailed exploration phase and is now gearing up to drill its first two exploration wells in the Thrace Basin Petroleum District 1 (Marmara).

The wells will be drilled with TPAO (the Turkish state oil company) as drilling contractor with their new truck mounted MR 7000 drilling rig. Total drilling time will be around 14 days.

The selection of the Bati Umur and Arpaci prospects is the culmination of a rigorous exploration process including data reviews, reprocessing, advanced geochemical and seismic surveys and amplitude anomaly analyses. Both prospects show amplitude anomalies indicative of the likely presence of hydrocarbons. A third prospect, Koyustu, also with Geochemical and amplitude anomalies, is ready for follow-up drilling upon success in Bati Umur and/or Arpaci.

Ottoman listed on the ASX in Western Australia on December 22, 2004 with an 80% equity position in three gas-prospective exploration licenses in the onshore Thrace Basin in the European part of Turkey.

Ottoman announced on 14 November 2005 that it had reached agreement with Incremental Petroleum Ltd to a farmin arrangement through Turkish subsidiary entities, whereby Incremental will fund a future exploration program to a total value of AUD$3,000,000 to earn a 15% working interest in the Edirne License from Ottoman. Incremental's earning program will commence after the drilling of the two wells, which have already been funded by Ottoman.

Upon success in Bati Umur-1 and/or Arpaci-1, the Joint Venture will step up its exploration and appraisal programs aiming towards early development of any discoveries. The additional funds provided by Incremental will facilitate such accelerated drilling effort.