Ottoman Energy Spuds Second Turkish Exploration Well

Ottoman Energy has spud its second exploration well Arpaci 1 in the gas prospective Thrace Basin of Turkey. The Arpaci prospect is located in the Edirne License 3839 in which Ottoman has a 65% interest.

The Arpaci 1 exploration well will be drilled to a depth of 500 meters. The 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 shallow reservoir intervals.

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

Bati Umur-1 and Arpaci-1 are drilled with TPAO (the Turkish National Oil Company) as drilling contractor, with their new truck mounted MR 7000 drilling rig.

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. The validity of this concept has recently been confirmed with the discovery of gas in Bati Umur-1.

A third prospect, Koyustu, also with Geochemical and amplitude anomalies, is ready for drilling. Koyustu lies adjacent to Bati Umur and Arpaci. Upon success in Arpaci and Koyustu, these individual fields could be developed as one development project sharing infrastructure.

In addition, several follow-up leads with amplitude anomalies have already been identified on nearby reconnaissance seismic. These leads will become a focus for seismic detailing in 2006 with the aim to prove-up a number of targets for drilling later in the year.