22 February 2013
Manager of Company Announcements
ASX Limited
Level 6, 20 Bridge Street
SYDNEY NSW 2000
By E-Lodgement
OTTO ENERGY PREFERRED BIDDER FOR AREA 7 IN LATEST PHILIPPINE CONTRACTING ROUND
Highlights:
• Otto Energy has been named as the preferred bidder for Area 7 under the latest Philippine Energy Contracting Round
• Final award subject to the execution of the final form of the Service Contract and other documentation
• Award adds new potential for high impact exploration to Otto's portfolio in South East Asia and East Africa
Otto Energy Ltd ("Otto") (ASX: OEL), has been named as the preferred bidder for Area 7 under the Fourth Philippine Energy Contracting Round.
The final award is subject to execution of the final form of the Service Contract and supporting documentation between Otto Energy and the Philippines Department of Energy. Upon execution, Otto will commit to reprocessing the existing seismic study with a minimum financial commitment of US$0.5 million within an initial period of 18 months.
Area 7 is an offshore block located in the southern part of the
Mindoro Basin - Cuyo Platform, a continental rift basin offshore
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
the Philippines. It covers around 8,440 km2 with water depths ranging from 100 metres to 1,300 metres. There is an existing 2D seismic data set of over 3,000 kilometres covering the block.
The petroleum play types identified in Area 7 are reef build-ups, fault blocks and anticlines. The reservoir intervals are Early Miocene to Pliocene carbonates and Early to Late Miocene carbonates and clastics. Source rocks are coaly and organic-rich claystones of Eocene to Middle Miocene. Middle Miocene carbonates and clastics provide the seal for the system.
Oil has been discovered with an Extended Production Test conducted in 1994 at the Maniguin wells near the block. The occurrence of oil seepages in the Mindoro Island region also confirms the presence of an active petroleum system in the area.
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
Otto Chief Executive Officer Gregor McNab said: "I look forward to successfully executing the final Service Contract documents for Area 7. The addition of this new exploration acreage is consistent with our strategy to build an integrated exploration, development and production company focused on South East Asia and East Africa. Area 7 has the potential to restock our existing, high impact, exploration prospect inventory that is already feeding our active drilling program through the rest of 2013."
---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
orrocP
ENERGY
Attachment 1: Area 7 Permit Map
c
+ +
Area 7
S C L C SEA
+ •c•u +
......,.."-··
---
.....,.,+... l l
O...t-.........
- _.112JID-CIDDII
Head Office 32 DelhiStreet, 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 32rd Floor Philamlife Tower, 8767 Paseo de Roxas, Makati City 1226, Philippines T: +63 2 773 2700 F:+63 2 773 280 1 info@ottoenergy .com ASX Code: OEL ABN: 56 107 555 046