14 March 2013

Manager of Company Announcements

ASX Limited

Level 6, 20 Bridge Street

SYDNEY NSW 2000

By E-Lodgement

GALOC OIL FIELD RESERVES UPDATE Highlights:

 Otto announces updated attributable Galoc oil field 1P Reserves of 3.4 MMstb and 2P Reserves of 4.3 MMstb.

 Galoc has Reserves Replacement Ratio of 115% on the

Proved basis and 98% on the Proved & Probable basis.

 Galoc oil field Reserves are expected to maintain production beyond 2020.

 Otto expects increased production volume from Galoc Phase

II in 2H 2013.

 [Galoc is one of three exploration events planned by Otto in CY2013 along with the Duhat-2 well and SC-55 prospect in the Philippines.]

Otto Energy Ltd ("Otto") (ASX: OEL) is pleased to provide an update on remaining oil reserve balances at the Galoc oil field in the Philippines as at 1 January 2013.
The operator of the Galoc oil field, Galoc Production Company WLL, is a wholly owned subsidiary of Otto. It has commissioned an
annual review of remaining oil reserves from RISK, an independent consulting firm.

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

RISC has reviewed the Galoc oil field reserves in accordance with the SPE, WPC, AAPG and SPEE Petroleum
Resource Management System definitions, guidelines and auditing standards.
The reported increases in reserves are attributable to better than expected reservoir performance to date and an extension of field life due to higher prevailing oil prices. The Galoc oil field is expected to remain in production beyond 2020 based on the Galoc Phase I and Phase II well configuration.
A detailed breakdown of Reserves is shown in Appendix A.
Otto's Chief Executive Officer Mr Gregor McNab said "Galoc continues to be a key asset for Otto, delivering valuable cashflow to fund future growth opportunities. I look forward to the delivery of continued reliable production from existing operations and increased production volume from Galoc Phase II in 2H 2013. I am proud of Otto's continued growth as an integrated exploration, development and production company focused on South East Asia and East Africa."

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

APPENDIX A: GALOC OIL FIELD RESERVES UPDATE

1. EUR numbers do not include G-1 EWT production in 1988

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