Byron Energy Limited says that its wholly owned subsidiary, Byron Energy Inc has entered into a binding participation agreement with Otto Energy (Louisiana) LLC, a wholly owned subsidiary of Otto Energy Limited.

This agreement covers three of Byron's existing projects, with Otto contributing up to $US 17.3 million in drilling costs and past expenditure recovery, as part of a staged farm out program, to advance the three projects.

The injection of this funding through a staged program will substantially reduce Byron's need for capital and could ultimately lead to three new wells being drilled by Byron during calendar year 2016, offering Otto an attractive, accelerated entry into an established basin.

Tags: Byron Energy Limited, Otto Energy Limited