20 June 2013

Manager of Company Announcements

ASX Limited

Level 6, 20 Bridge Street

SYDNEY NSW 2000

By E-Lodgement

OTTO AT A GLANCE

Highlights:

GALOC EXPLORATION DRILLING UPDATE

• ASX-listed oil and gas company with a strategy to grow its integrated oil and gas

business across exploration, development

• Galoc exploration potential of an additional mean recoverable 12 MMbbls supported by ongoing studies

• Galoc Joint Venture elects to defer drilling of Galoc exploration well from current campaign

Otto Energy Limited ("Otto") (ASX:OEL), as Operator of the producing Galoc oilfield Joint Venture offshore the Philippines, provides the following update on studies that have recently been undertaken on the further exploration potential at the Galoc field.
Studies undertaken since new high resolution 3D seismic data was acquired in 2012 have supported the potential for a further
12 MMbbls of recoverable oil (mean recoverable success case) from areas not currently under production or planned to be bought into production with the current drilling campaign.
The field has produced over 10 MMbbls of oil with a further 11
MMbbls (1P) and 15 MMbbls (2P) to be developed through the existing Phase I infrastructure and current Phase II development campaign. The near field exploration potential is supported by seismic data acquired and reservoir production history both of which have significantly de-risked further exploration.

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

The Ocean Patriot drilling rig which has been contracted for the Galoc Phase II drilling campaign is rated to a
400 metre water depth, and is not capable of drilling some of the optimal well locations for a Galoc exploration well. Therefore the Joint Venture has made the decision to defer exploration drilling from this current campaign and will incorporate the results from the Phase II drilling campaign into plans for further exploration drilling.
Otto Chief Executive Officer Gregor McNab said: "The outcome of the Galoc exploration studies has been very positive and reinforces our view that this field continues to outperform expectations. We look forward to progressing drilling of a Galoc exploration well at the preferred drilling location as soon as a suitable rig can be secured. In the meantime, Otto Energy looks forward to safe execution of the Galoc Phase II project, drilling of the Duhat-2 well and acquisition of seismic in our two Tanzanian blocks over the coming months"

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

--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]

Competent Persons Statement

The Reserve and Contingent Resource estimates outlined in this announcement have been compiled by Mr
Nick Pink. Mr Pink is the Senior Reservoir Engineer of Otto and a full time employee. Mr Pink has more than

14 years of relevant experience and is qualified in accordance with ASX Listing Rule 5.11. Mr Pink has consented to the form and context that this statement appears.

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

Location and Proposed Depth of Galoc Phase II Development Drilling

The Galoc field is located in Service Contract SC14C (Galoc Sub Block) in 290m of water approximately 65km North West of Palawan Island and 350km south of Manila in the Republic of the Philippines. The Galoc-5H and Galoc-6H development wells are being drilled within the existing producing field that has delivered over 10
MMbbls of production since the field was commissioned in 2008.
The wells are being batch drilled in 311 metres of water. It is planned that the Galoc-5H and Galoc-6H development wells will be drilled to a total vertical depth of 2,190 with approximately 2,000 of horizontal completion. Drilling is expected to take approximately 115 days including the flowing of the wells for clean-up.
After drilling of both Galoc-5H and Galoc-6H is completed, the DOF operated Skandia Hercules construction vessel will be used to install the subsea equipment and complete the hook-up of both wells to the FPSO Rubicon Intrepid.

First oil from the Phase II wells is expected during Q4 2013.

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

APPENDIX A: SUMMARY

Joint Venture Partners:

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