Otto Energy Briefs 1Q Operational Results

Otto Energy has delivered one of the busiest operational periods in the company’s short history for the quarter ended March 31, 2010.

  • First sales gas achieved from Edirne Gas Facility on April 8, 2010
  • Galoc production of 767,315 bbl of crude oil with 83% uptime
  • 4 exploration wells drilled in the Edirne license
  • 3 seismic campaigns successfully completed in the Philippines.

First sales gas from the Edirne license in Turkey was delivered on April 8, 2010 under the previously announced gas sales agreement. Phase 2 exploration and appraisal drilling has commenced with the first three wells encountering gas. A fourth well is currently being drilled.

The Galoc oil field has now produced a total of 4.3 mmbbls of crude oil and delivered 12 offtakes to customers. The field continues to produce in line with expectations and Otto is working with the Operator to continue to improve facility performance and plan for the appraisal and development of the remainder of the field.

Otto has completed its 600 km2 and 1,800 km2 3D seismic surveys in Service Contract 55 offshore Palawan and its 900 km 2D seismic survey in Service Contract 69 in the Visayan Basin in the Philippines. All recent seismic campaigns undertaken by Otto have been completed without a safety incident continuing our impeccable safety record.

The farm-out market for the Company's remaining Philippines permits continues to strengthen and Otto has received numerous expressions of interest in this acreage. Otto continues to work towards securing further farm-outs of our acreage in 2010.