Ann: Commercial Gas Condensate Discovery at Mosquito Bay West, page-2

Sound Great


COMMERCIAL GAS CONDENSATE DISCOVERY AT MOSQUITO BAY WEST Point Au Fer LLC #1 well encountered 111 feet TVT of proved net pay in five sands, plus another 10 feet TVT potential pay in one other sand considered probable or possible. Represents significantly higher net pay count than Otto’s mid-case on a pre-drill basis. Facility and pipeline construction to begin immediately, first production expected in Q3CY2022. Following well completion, drill rig to spud new exploration well at Oyster Bayou South. Delivers strong validation of Otto’s disciplined opportunity filter and growth strategy.Otto Energy Limited (ASX: OEL) (Otto or the Company) provides an operational update on the Mosquito Bay West exploration prospect located in Terrebonne Parish, Louisiana.After being spud on 22 May 2022, the Point Au Fer LLC #1 well was safely drilled to target depth of 14,867’ MD (Measured Depth) / 12,967’ TVD (True Vertical Depth) and ahead of schedule. The well encountered a proved net gas pay of 111 feet TVT (True Vertical Thickness) across five separate Miocene intervals, plus another 10 feet TVT potential pay in one other sand that is considered probable or possible. This is an excellent result and represents a significantly higher net pay count than Otto was carrying in its mid-case on a pre-drill basis1. Updated resource estimates will be made available in due course. This is Otto’s second exploration success in the last 6 months after the Eaves discovery, with the spudding of the Oyster Bayou South exploration well to commence shortly.Facility and pipeline construction will begin immediately, with first production expected during Q3 CY2022. The additional free cash flows are expected to strengthen Otto’s already strong balance sheet and Otto’s ability to explore further opportunities. Otto is currently holding approximately US$30MM in cash.In addition to the Mosquito Bay West discovery, Otto is looking forward to the recompletion of the SM 71 F2 well into the J1 sand and the recompletion of the GC 21 Bulleit well into the DTR-10 sand during CY2022 which will further boost Otto’s production.