Otto Energy Starts Turkish Seismic Survey

Otto Energy

Otto Energy has started the 2006 seismic survey in the Edirne License of the onshore Thrace Basin of Western (European) Turkey. Otto, through Edirne Energy, its 100% owned Turkish subsidiary, is carried through this seismic survey which forms part of a $3 million farmout to PEMI, a Turkish subsidiary of Incremental Petroleum Limited. PEMI, which operates the Selmo Oilfield in Eastern Turkey, will earn a 15% interest in the License and Otto will retain a 65% beneficial interest.

The Operator, Merty Energy advised that the 2006 Mini Sosie seismic survey of some 175 line km in the Edirne License, commenced on 6 September 2006. The survey is near the Bati Umur-1 gas discovery, drilled by the Otto Joint Venture in December 2005.

Otto's Managing Director Dr Jaap Poll said:

"The seismic survey follows the discovery of the Bati Umur-1 gas field in December 2005 and the drilling of the Arpaci-1 well in January 2006 (which had gas shows at various levels). The current seismic survey is designed to investigate and mature at least two additional drilling targets in close the vicinity of the Bati Umur-1 gas discovery.

The already identified Koyustu prospect, the Bati Umur discovery and the Arpaci-1 well are all in close proximity to several leads with amplitude anomalies, which will allow for cost effective development once commerciality has been established through further drilling.

It is believed that with the attractive gas pricing in Turkey, as little as 1.5 to 2 BCF may be commercial in this area close to market. The Operator estimates that the Bati Umur-1 well contains 1.29 BCF of P50 recoverable gas at the main pay level (P90: 1.03 BCF, P10: 1.72 BCF)."