Otto Says Turkish Seismic Survey Completed Ahead of Schedule

Otto Energy and Incremental Petroleum says that the 3D Seismic Survey in the Turkish Edirne License in the Thrace Basin was completed on budget and ahead of schedule as of September 17, 2007.

Oil and gas survey consultants Fugro UK will process the seismic data, which is expected to be available for interpretation in early December.

Operational highlights:

-The 149km2 3D survey was finished under budget and two weeks ahead of schedule with no interruptions.

-The survey was designed to cover the central, and so far most prospective, section of the permit which includes the joint venture’s three existing gas discoveries: Koyustu-1, Bati Umur-1 and Arpaci-1

-As previously announced Otto Energy and Incremental Petroleum intend to drill approximately five wells in a program commencing in December 2007 targeting at least two targets with the potential to each contain 30bcf or more of recoverable gas.

-Further well locations will be finalized based on the results of ongoing studies and the 3D seismic.

Commenting on the news Alex Parks, CEO of Otto Energy, said “Our Turkish Operator has done an excellent job of managing the seismic acquisition and we are pleased that the survey has been completed ahead of schedule.

"We are looking forward to the drilling campaign scheduled to commence in December 2007 and are confident the Joint Venture has sufficient gas reserves in Turkey to warrant an immediate gas development feasibility study, aiming at commencing production in 2008."

The Joint Venture in the Edirne License in Turkey consists of:

Merty Energy Ltd (Joint Operator)          10%
Petrako Ltd (Joint Operator)               10%
Otto Energy Ltd (ASX:OEL)                  35%
Incremental Petroleum Ltd (ASX:IPM)        45%