COMMERCIAL GAS CONDENSATE DISCOVERY AT OYSTER BAYOU SOUTH▪...

COMMERCIAL GAS CONDENSATE DISCOVERY AT OYSTER BAYOU SOUTH▪ A0391#1welllocatedonOysterBayouSouthprospecthasencountered68feetTVT of net pay, consistent with Otto’s pre-drill Mid Case Prospective Resource estimate.▪ Currently being completed as a producing well with first production expected Q4 CY 2022.▪ Delivers further strong validation of Otto’s disciplined opportunity filter and growth strategy, with three consecutive exploration well successes now delivered.Otto Energy Limited (ASX: OEL) (Otto or the Company) provides an operational update on the Oyster Bayou South exploration prospect located in Terrebonne Parish, Louisiana.After being spud on 27 June 2022, the A0391 #1 well was safely drilled to target depth of 14,137’ MD (Measured Depth) / 13,064’ TVD (True Vertical Depth) on 8 July 2022, ahead of schedule. The well encountered proved net gas pay of 68 feet TVT (True Vertical Thickness) Miocene pay. This is a strong result, representing a net pay count consistent with the mid-case expectation on a pre- drill basis1. Updated resource estimates will be made available when completed.The well is currently being completed and is scheduled for first production during Q4 CY 2022.Oyster Bayou South represents Otto’s third consecutive exploration success in the last six months, following the preceding Eaves and Mosquito Bay West discoveries. This presents a robust technical and commercial proof point for successful application of Otto’s capital investment framework to potential new opportunities with Mosquito Bay West and Oyster Bayou South each being discovered and developed for a F&D (finding and development) cost of between US$6/boe and US$7/boe. Otto continues to review opportunities in the market applying the same capital investment framework to additional new ventures opportunities and will update the market when deals are concluded.