trading hold - farmin agreement, page-25

Just in case anyones forgotten the original farm in option agreement here it is.

SEISMIC ACQUISITION AND FARM IN OPTION AGREEMENT�] SERVICE CONTRACT 55, PHILIPPINES
Otto Energy Limited (ASX: OEL) advises that it has entered into a seismic acquisition and farm in
option agreement in respect to its SC55 permit in the Philippines with BHP Billiton (BHPB).
Under the agreement, Otto is required to secure seismic services providing for the commencement
of the seismic acquisition. BHPB will fund the acquisition and processing of a minimum of 1,000 km2
and up to 2,000 km2 of 3D seismic in SC55. In consideration Otto has agreed to grant BHPB
exclusivity to review the entire seismic data base and exercise an option to farm�]in to SC55.
The farm in option provides BHPB with an exclusive right to elect to earn a 60% net participating
interest in SC55 through funding the drilling of the two deepwater exploration wells and the
reimbursement of Otto�fs past costs. BHPB will also be assigned operatorship in the event that it
elects to farm in to SC55. If BHBP elects to drill only the first deepwater exploration well then BHBP
will transfer back 30% interest and operatorship of SC55 to Otto.
Any farm�]in by BHPB will be subject to the negotiation of formal farm�]in and joint venture
agreements and all necessary approvals being obtained from the current Joint Venture partner and
the Philippines Department of Energy.
Otto has recently completed the acquisition of 600 km2 of 3D seismic in SC55 and is pleased to be
working with BHPB to acquire and process up to an additional 2,000 km2 of new 3D seismic in the
Service Contract. Together these seismic surveys will allow Otto to establish a comprehensive
subsurface understanding of the offshore Palawan permit area and prospects inventory for future
drilling campaigns.
SC55 covers an area of 9,000km2 and is located offshore Palawan Island in the Philippines. Otto
currently has an 85% working interest in SC55 and is the operator.
Yours faithfully
Paul Moore
Chief Executive Officer