8 November 2013

Manager of Company Announcements

ASX Limited

Level 6, 20 Bridge Street

SYDNEY NSW 2000

By E-Lodgement

OTTO ENERGY NOTES POSITIVE RESULTS FROM TANZANIAN EXPLORATION PROGRAM

Highlights:

 Otto's partner Swala Energy announces results from a

2D seismic program over the jointly owned Kilosa- Kilombero Licence in Tanzania

Otto Energy Limited (ASX: OEL) ("Otto" or "The Company") notes the positive exploration results from its Kilosa-Kilombero licence in Tanzania reported in the attached ASX Announcement from joint venture partner Swala Energy Limited (ASX: SWE).

Otto holds a 50% interest in the onshore Kilosa-Kilombero PSA under an agreement announced in early 2012. Swala has an indirect 32.5% interest in the licence.

Otto Energy Chief Executive Officer Gregor McNab said: "These results reported by Swala are extremely encouraging, underscoring our belief in the Kilosa-Kilombero licence that we joined in early 2012.

"We believe that the results of this 2D seismic program support our decision to move into the exciting onshore East Africa region, which remains a core area of focus for Otto alongside

OTTO AT A GLANCE

• ASX-listed oil and gas company with a strategy to grow its integrated oil and gas business across exploration, development and production

• Focused on South East Asia and East

Africa

• Operator of the producing Galoc oil field in the Philippines, which provides cashflow

• Opportunity rich with substantial exploration prospects and leads COMPANY OFFICERS

Rick Crabb Chairman

Ian Macliver Director Rufino Bomasang Director John Jetter Director Ian Boserio Director Gregor McNab CEO

Matthew Allen CFO/Coy Secretary

our exploration, development and production assets in South East Asia."

Please find a copy of the Swala Energy Limited announcement attached.

--Ends--

Contact: Matthew Allen

Chief Financial Officer

+61 8 6467 8800

[email protected]

Media:

Dudley White

MAGNUS Investor Relations + Corporate Communication

+61 2 8999 1010

[email protected]

Head Office 32 Delhi Street, West Perth WA 6005 Australia PO Box 1414, West Perth, WA 6872 Australia T: +61 8 6467 8800 F: +61 8 6467 8801

Manila Office 32nd Floor Philamlife Tower, 8767 Paseo de Roxas, Makati City 1226, Philippines T: +63 2 773 2700 F: +63 2 773 2801 [email protected] ASX Code: OEL ABN: 56 107 555 046

SWALA ENERGY LIMITED ACN 161 989 546

ASX Release (ASX: SWE) 8th November 2013

FURTHER POSITIVE RESULTS FROM SEISMIC PROGRAMME

Highlights

 Seismic programme over the third of the Kilosa-Kilombero licence area basins completed

 Sediment in potential Neogene-age basin appears similar to proven oil basins along the same rift system

 Large structural trap identified

 Observation of possible Direct Hydrocarbon Indicators

Swala Energy Limited ("Swala" or "Company") is pleased to announce that the 2D Seismic Programme underway on the Kilosa-Kilombero licence ("License") in Tanzania has produced further positive results. Swala has an indirect 32.5% interest in the license.
The programme over the Kilombero basin has been completed and the preliminary geological interpretation of the results is positive. These follow those seen from the seismic programme undertaken in the Kidatu and Kilosa basins to the north where the results, announced by Swala on
18th September and 14th October 2013 respectively, were also positive.
The Kilombero Basin is approximately 80 kms long. Swala has acquired 2D seismic over a 20km long section and the results show a large structural high adjacent to the basin bounding fault that extends over a distance of 9 km and is about 4km wide (See Figure 1).
Initial results also suggest the presence of a thick, Neogene-age basin with a maximum depth to basement in excess of 3,000m. The age of the sediments recorded (based on low seismic velocities) appears to be similar to that of sediments observed in the now proven oil basins of Lokichar (Kenya), and Lake Albert (Uganda), where Africa Oil (TSX.V:AOI) and Tullow Oil (LSE: TLE) have had significant success.
Dip lines across the basin suggest the presence of both structural traps and traps against the main basin-bounding fault with possible Direct Hydrocarbon Indicators (DHIs or 'Flat Spots') observed at
several levels at the crest (see Figure 2).

Swala Energy Limited

70C Kishorn Road, Mount Pleasant, WA 6153, Perth, Australia

Telephone: + 61 (0)8 6270 4700 Fax: + 61 (0)8 6314 4675 www.swala-energy.com

The seismic acquisition team will now move to the Pangani Licence where the final stage of the seismic programme is expected to take a further 6 weeks to complete.
Dr. David Mestres Ridge (CEO) said, "The seismic work programme has touched less than 20km in a potentially hydrocarbon-bearing basin and though more work is required to process and interpret the data we are very happy with the initial findings. The combination of sediment age, structure, and trapping geometries that are similar to those seen in the working basins in Uganda and Kenya, along with a number of possible flat spots, all go to make the Kilombero basin an exciting prospect, and these continued positive results coming from the seismic programme underscore our strong faith in the region. The joint venture is now reviewing how best to continue to determine the full potential of the area. Polaris, our seismic contractors have done a sterling job operating in an area with difficult terrain and will now move to the Pangani Licence to cover the two remaining Tanzanian basins identified in 2012."
For further information please contact:
Swala Energy Limited
David Mestres Ridge (CEO) T: +61 8 6270 4700 [email protected] www.swala-energy.com
Walbrook Investor Relations
Ben Knowles
T: +61 8 6189 2230
M: +61 426 277 760
[email protected]

About Swala:

Swala Energy is an Australian oil and gas company with assets in Kenya and Tanzania. Swala's
holdings are in the world-class East African Rift System with a total net land package in excess of
15,000km2. New discoveries have been announced in a number of licences along this trend,
including Ngamia, Twiga and Etuko, which extend the multi-billion barrel Albert Graben play successfully developed by Tullow Oil plc into the eastern arm of the rift. Swala has an active operational and business development programme to continue to grow its presence in the hydrocarbon provinces of sub-Saharan Africa. The company is listed on the Australian Securities Exchange ("ASX") under the symbol "SWE".

Note: In accordance with ASX Listing Rules, any geological or hydrocarbon reserves information in this release has been reviewed by Swala's Exploration Director, Mr Neil Taylor who has over 30 years' experience in the sector. He consents to that information in the form and context in which it appears.

Swala Energy Limited

70C Kishorn Road, Mount Pleasant, WA 6153, Perth, Australia

Telephone: + 61 (0)8 6270 4700 Fax: + 61 (0)8 6314 4675 www.swala-energy.com

Figure 1: Example Dip Line Across the Kilombero Basin with Possible DHIs

Figure 2: Strike line along the main basin-boundary fault with possible DHIs

Swala Energy Limited

70C Kishorn Road, Mount Pleasant, WA 6153, Perth, Australia

Telephone: + 61 (0)8 6270 4700 Fax: + 61 (0)8 6314 4675 www.swala-energy.com