Ann: Turkey Exploration and Development Update , page-2

re: Ann: Turkey Exploration and Development U... 19 March 2010
Manager of Company Announcements
ASX Limited
Level 6, 20 Bridge Street
SYDNEY NSW 2000
By E‐Lodgement
TURKEY EXPLORATION AND DEVELOPMENT UPDATE
Edirne Gas Plant
Otto Energy Limited (ASX: OEL) is pleased to advise that the construction of the
Edirne Gas Plant System has been completed.
Gas sales will commence following completion by BOTAS, the state‐owned
pipelines and trading company in Turkey, of a hot tap on its 14 main line to
create the delivery point for the Edirne gas. The Joint Operators are in the
process of retrofitting the hot tap fitting to accommodate Botas requirements.
The hot tap is expected to be completed near the end of March with first gas
sales shortly thereafter.
Otto has finalised gas gathering and tolling agreements with the Joint Operators
of the Edirne Gas Plant to process the gas from the Edirne Fields which is jointly
owned with Otto. As previously announced, all gas production from the Edirne
licence will be sold via dedicated sales arrangement to AKSA Dogalgaz Toptan
Satis A.S at a 15% discount the Industrial Interruptible Tariff benchmark set by
BOTAS and Otto has elected not to participate in the Gas Plant ownership. Otto
expects that the discounted gas price in the short term will be between US$7.00
to US$8.00/ GJ. The discounted gas price will change over time reflecting
amendments in the tariffs set by BOTAS.
The Edirne Joint Venture partners comprise Otto which holds a 35% interest in
the Edirne Licence and Joint Operators Transatlantic Mediterraean Int (TEMI)
(55%) and local Turkish company Petraco (10%).
Phase 2 Drilling Program
The third exploration well in the phase 2 drilling program, Yolboyu‐1 well
reached a total depth of 2,000 metres (m) on 15 March 2010. Preliminary
evaluation of well logs indicates the potential of gas in the Upper Danismen Formation and the well will
be suspended for future evaluation.
The Operator is preparing to move the rig next well, Somurcali‐1.
Yours faithfully
Paul Moore
Chief Executive Officer
2000
OTTO AT A GLANCE
ASX‐listed oil and gas company with
significant growth potential.
Production from Galoc Oil Field
provides cash flow.
Development of gas field in Turkey to
become second revenue‐generating
asset.
Opportunity rich with substantial
exploration prospects and leads in
portfolio.
COMPANY OFFICERS
Rick Crabb Chairman
Jaap Poll Director
Ian Macliver Director
Rufino Bomasang Director
John Jetter Director
Paul Moore CEO
Matthew Allen CFO
Emma McCormack Company Secretary