32 Delhi Street
West Perth WA 6005
PO BOX 1414
West Perth WA 6872
T: (08) 6467 8800
F: (08) 6467 8801
ASX Code: OEL
945 Wellington Street
West Perth WA 6005
T: (08) 9322 7600
F: (08) 9322 7602
NorAsian Energy Limited
4th Floor F&M Lopez Building II
109 Carlos Palanca Street
Legaspi Village 1229 Makati City
Republic of Philippines
T: +63 2857 4300
F: +63 2892 2609
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Computershare Investor Services Pty Ltd
Level 2, 45 St George's Terrace
Perth WA 6000
T: (08) 9323 2000
F: (08) 9323 2033
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Turkey Representative Office
C/- Petrako Petroleum Trade & Consulting Inc.
Koza Cad 5 Sok 4/6
06700 GOP Cankaya
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Argentina Representative Office
C/- EMEPA S.A.
Paso de los Andes 553
Lujan de Cuyo, Mendoza, Argentina
T: (0261) 4985036
F: (0261) 4981494
Otto Energy is a company underpinned with strong fundamentals:
- Strong board and management and an experienced technical team
- Production from Galoc Oil Field provides cash flow
- Development of gas field in Turkey to become second revenue-generating asset
- Substantial exploration prospects and leads in portfolio
Otto Energy listed on the ASX in 2004 under the code OEL.
04/11/2009 Change in Director`s Interest
30/10/2009 Quarterly Activities and Cashflow Report
27/10/2009 Galoc Operarions Update
19/10/2009 Annual report to Shareholders
Otto Energy has experienced significant growth since it listed on the ASX in 2004.
The Company has assembled a balanced portfolio of highly prospective onshore and offshore oil and gas projects across four countries: The Philippines, Turkey, Italy and Argentina. In October 2008, Otto transformed from sole explorer to an explorer/producer with production commencing at the Galoc oil field in the Philippines.
The Company's strategic focus is to maintain a balanced portfolio through ensuring that Otto:
- Operates in the Australasian time corridor (Philippines/ SE Asia)
- Invests in low cost, non-operated assets worldwide
- Targets organic growth through exploration, but also remains open to potential M&A opportunities as they arise
- Continue to acquire further seismic and new ventures to maintain a portfolio of high impact exploration opportunities until major discoveries are made
Based in West Perth, Otto Energy Limited is an international exploration and production company that in four short years has assembled a balanced portfolio of oil and gas assets in the Philippines, Turkey, Italy and Argentina.
Revenue which the company receives from production, now underway at Galoc Oil Field (SC14C Philippines), will be used to fund further development and exploration across all of the company's highly prospective assets.
Otto has a substantial exploration portfolio that includes additional discoveries under development, approximately 20 drillable prospects covered by new 3D seismic and well over 50 exploration leads which are being matured as follow-up potential.
Otto is strategically placed with...
- Funding via production at the Galoc Oil Field
- Strong management and experienced technical teams in both Australia & Philippines
- Highly propsective asset portfolio
- Active exploration and development program over the next two to five years
Otto is currently one of the largest landholders of prospective acreage in the Philippines, through the Company's wholly-owned subsidiary NorAsian Energy Ltd.
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Otto has an 18.77% indirect interest in the Galoc Oil Field, located in Service Contract (SC) 14C offshore Philippines, via a 31.38% shareholding in the field Operator, Galoc Production Company WLL (GPC). GPC holds 59.84% equity in the Field.
Production at Galoc commenced in October 2008.
Otto also holds substantial equity positions and is Operator in four Service Contract areas totalling more than 20,000 km2 of offshore acreage.
Otto became Operator of SC50, SC51 and SC55 following acquisition of NorAsian in 2005/06. In May 2008, the Philippines Department of Energy (DOE) awarded NorAsian the fourth permit for SC69.
Having acquired extensive 2D & 3D seismic data sets in 2007, Otto is currently in the process of seeking farm-in partners for the Philippines projects in SC50, SC51 and SC55. For more information on Otto's Farm-Out opportunities click here.
Bringing in suitable partners will allow Otto to balance risk and spread exploration dollars across a bigger program to statistically enhance the overall chance of making a commercial discovery.
SC50 (Otto 85%) holds the Calauit and Calauit South Oil Fields which were discovered in 1991/92. The fields lie in shallow water depths that range from 50m to 100m and the area is situated at the northeast of the oil and gas prolific Palawan Basin.
SC51 (Otto 80%) is situated in the East Visayan Basin in the central Philippines. The area consists of a northern and southern part with the two areas being separated by a distance of approximately 80km. The large Argao & Bahay prospects are located in the south block, with over 9 additional leads recently defined from modern 2D and 3D seismic.
SC55 (Otto 85%) covers an area of 9,000km2 in the southwest Palawan Basin. It is a deepwater block in the middle of a regional oil and gas fairway, which extends from the productive region offshore Borneo in the southwest to the Philippine production assets in the northeast including the Malampaya oil and gas field, which is currently the largest producer of condensate and gas in the Philippines.
SC69 (Otto 70%) was awarded to Otto/NorAsian in May 2008, and is located offshore in the East Visyan Basin adjacent to SC51. It has more than 20 identified structures with oil and gas potential.
SC14C (18.28% indirect) Offshore northwest Palawan basin, SC14C is in midwater depths and contains the Galoc Oil Field. Galoc field commenced production in October 2008.
SC50 - "Calauit Oil Fields"
(OTTO 85% interest)
Otto has an 85 per cent interest in SC50, which is situated at the north east end of the oil and gas prolific Palawan Basin. Water depths range from 50 metres to 150 metres. Calauit and Calauit South oil discoveries were made in 1991/92.
The 3D seismic interpretation is now complete and is being incorporated into a development concept for the field.
SC51 consists of two sub-blocks over the East Visayan Basin. This is an exciting exploration block in approximately 300m of water with two ready to drill prospects that
are de-risked by DHI's and 3D seismic. Interpretation of the 3D offshore seismic data, acquired on the southern sub-block in late 2007 is now completed.
SC55 covers an area of 9,000 km2 and has never previously been held as an exploration block. With the interpretation of 2D seismic data now complete, Otto is seeking farm-in parties for a 3D seismic survey a deepwater exploration drilling program over Marantao and possibly Hawkeye prospects. A deep water block with massive reef and turbidite reservoir potential with Direct Hydrocarbon Indicators, Marantao has prospective resources of 3.3 tcf gas or >1 billion bbls oil, with a number of further leads for follow up.
SC55: MULTI BILLION BBL TARGETS
SC14C - "Galoc Oil Field"
(OTTO indirect interest 18.28%)
Otto has an indirect interest of 18.77 per cent in the Galoc Oil Field through its 31.38% shareholding in the field operator, Galoc Production Company WLL (GPC) which holds 59.84% interest in the field. A subsidiary of the Vitol Group owns the remaining stake (68.62%).
SC14C is situated offshore Northern Palawan in a proven oil and gas fairway which also contains the Philippines largest oil and gas field, Malampaya. Water depth at the Galoc Oil Field is around 290m.
Production commenced in October 2008. Over 2 million barrels of oil have already been produced from the Field.
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SC69 block, awarded to Otto in May 2008, has more than 20 identified structures with potential for both oil and gas. Located adjacent to SC51, SC69 has excellent follow up potential should Otto have exploration success in SC51.
Otto holds a 35 per cent interest in the Edirne Licence onshore Thrace Basin of Western Turkey. The Edirne licence was originally acquired by Otto in 2004 but is now a non operated asset, operated by joint venture partners Petroleum Exploration Mediterranean Int. (55%) and a local Turkish company Petraco (10%).
To date, seven gas discoveries have been made on the licence for a total of approximately 10-20 Bcf (gross) of discovered gas. Well testing was successfully completed in June 2008 and testing has continued in June/July 2009.
Otto Energy and its joint venture partners have awarded two contracts for the design and engineering of a gas processing plant and pipeline for the development of the Edirne gas fields in Western Turkey.
The Turkish Energy Market Regulatory Authority (EMRA) granted the JV a wholesale gas licence. The JV will be the first to produce and sell onshore Turkish gas directly into the extensive "Botas" gas distribution network, which enables the sale of gas anywhere in Turkey for the best possible price, at a discount to the Botas price.
Negotiations for Gas Sales Agreement is underway and then development of the field with production expected to commence in Q1 2010. This low cost exploration and development project is teamed with a good fiscal regime and a robust domestic gas price. It will become Otto's second producing asset and source of cash flow.
Prospects and Leads in Bastiglia-Cento Permits
Italy is a new country entry for Otto into the established Po Valley area, which has good infrastructure and high gas prices. Otto Energy has 50% working interest in the onshore Bastiglia-Cento Exploration Permits. Otto's joint venture partner and field Operator is Ascent Resources Plc.
The two adjacent Bastiglia-Cento Exploration Permits are considered highly prospective and have multiple hydrocarbon prospects and leads already identified from previous seismic data. The Joint Venture will be drilling targets between regional highs that all have established hydrocarbon fields found in the 1960/70s.
The first well, Gazzata-1, was drilled during May/June 2009. The well intersected a series of sand/shale sequences below 2,300 metres and was drilled to a total depth of 2,840m. Wireline logs were run and interpretation of the log data did not indicate any commercial gas zones. The well was subsequently plugged and abandoned as a dry hole.
The Joint Venture is currently reviewing data from the well logs with a view to ascertaining next steps for the future exploration programme.
OTTO ENERGY LIMITED details