Otto Energy provides an update on its exploration drilling programs in Turkey, Italy and Argentina.

Turkey - Edirne Licence The operator, Petroleum Exploration Mediterranean Int. Pty Ltd (PEMI), advises that based on first pass log interpretation, the Kirmizihoyuk-1 exploration well has encountered approximately 15m of gas pay over three zones that will be confirmed with testing over the coming week. The current operation is running and cementing casing.

Italy - Cento-Bastiglia Permits Drilling commenced on 19 May 2009 in the Cento-Bastiglia Exploration Permits located in the Po Valley, onshore Italy. The operator, AIM-listed Ascent Resources Plc (Ascent) advises that the primary target lies at approximately 2,100 metres in Pliocene sandstones. The well will take approximately 3-4 weeks to reach target depth assuming trouble free drilling. Gazzata-1 is being drilled with the new Perazzoli HH-200 drilling rig.

Otto is earning a 50% working interest via the funding of the Gazzata-1 well and a second well if Gazzata-1 is a significant discovery (over 10 bcf of gas). There is a cap on the expenditure for both the Gazzata-1 and the second well, above which the contribution is 50/50 between Otto and Ascent.

The Gazzata Prospect The Gazzata-1 exploration well targets P50 prospective gas resources of over 100 Bcf in a seismically defined amplitude anomaly of over eight square kilometres in area. The minimum economic threshold for a commercial gas discovery in the Po valley with its excellent pipeline infrastructure and high European gas pricing is calculated by Otto to be less than 10Bcf of recoverable gas.

Argentina – Santa Rosa Licence Otto is pleased to announce preparation of the well site for the first well has commenced and drilling is scheduled to commence in mid June.

Tags: Otto Energy Limited