Just came across the below, a bit long, but it provides an...

Just came across the below, a bit long, but it provides an almost complete picture of OEL's progress to date, with the last sentence saying it all!:

The International Resource Journal: Otto Energy Limited

Otto Energy Limited
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admin on 25 March, 2010 12:03:00

Since being listed on the Australian Stock Exchange in 2004, Otto Energy Limited
(OEL) has amassed a portfolio of onshore and offshore oil and gas projects, that
stretch across the Philippines, Turkey, Italy and Argentina. At that same time,
its Edirne Licence, which is located onshore of the Thrace Basin of Western
Turkey, was vended into the company. To date, Otto has 35 per cent of this
project as well as joint ventures with Petroleum Exploration Mediterranean
International (55 per cent) and a local Turkish company, Petraco (10 per cent).
In September of 2006, Otto acquired NorAsian Energy and with the company came
its interests in SC50 (Calauit Oil Field, gaining 100 per cent), an 80 per cent
interest in SC51 (Offshore Cebu) and an 85 per cent interest in SC55 (Palawan
Ultra Deep Water). This meant that Otto controlled one of the largest publicly
owned acreage holdings in the Philippines but, by no means marked the end of the
company’s rapid growth.
In December of 2007, Otto acquired Cape Energy and Team Oil which held a
combined interest of 31.38 per cent in the Galoc Production Company. This, in
turn, gave Otto an 18.28 per cent holding in the Galoc Oil Project. Within one
year, in October of 2008, Otto made the move from explorer to producer when the
company commenced production at Galoc. Commercial production began on the
project from June 2009, and the Edirne licence looks set to follow suit with its
first gas production reportedly imminent.
“OEL differs from many of our peers as we have the in-house expertise
across the full life cycle of the upstream E&P industry,” the company
says. “We have excellent exploration skills aligned with a proven ability
to take discoveries through to commercial production–something many of our
peer’s lack.” Otto knows what it really takes to move from
exploration into production, and has experienced rapid growth since
2004—focusing firmly on future plans to add to its portfolio.
Getting Galoc into production
The production breakthrough at Galoc in 2008 is somewhat of a benchmark of
accomplishment for Otto, but it wasn’t exactly easy. The initial stages of
production were marked by substantial facility down time due to difficulties
with the riser and mooring system, and the system was essentially under-designed
for the marine operating environment in which it was installed. Following
achieving commercial production, the company focused more significantly on
operator training on the FPSO in July of last year. Uptime improved to 78 per
cent in the December 2009 quarter, indicating that the company was only gaining
confidence and making its operations more economical for the project.
“The venture is reviewing subsurface understandings with a view to
commissioning between one and two additional development wells. These wells are
targeting between one and nine mmbbl of additional reserves at the 2P level with
a mean of five mmbbl. The wells are expected to initially produce between four
and eight kbopd,” Otto explains. “A decision on both the mooring and
riser system upgrade and development drilling is expected by the end of the
second quarter of 2010.”
Today, Galoc generates strong cashflow as an existing producing asset, which of
course facilitates further growth in the form of the Edirne licence.
Edirne looks to be next
When Edirne reaches production it will generate revenue as Otto’s second
producing asset and plans are well underway to prepare for that day. Otto and
its joint venture partners on this project 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.
On December 16, 2009, Otto announced that along with its joint venture partners,
it had secured a five-year Gas Sales Agreement for all gas production from the
Edirne. In doing this, Otto was guaranteed market entry for the existing gas
reserves on the project and also enabled to go about funding further exploration
on the license.
“The Turkish Energy Market Regulatory Authority (EMRA) granted the joint
venture a wholesale gas licence,” Otto says. “The joint venture 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.”
On February 15 of 2010, Otto announced that it has spudded Yolboyu-1; a
higher-risk well within Edirne which could hold potential gas reserves of up to
seven billion cubic feet. Yolboyu-1 is the third of seven wells within this
drilling programme. Two others known as Kumluk-1 and kartal-1 wells have already
been drilled. At 2,000 metres depth, Yolboyu-1 stands out from the other wells
within this programme because it is over twice as deep as the rest.
Doing things Otto’s way
Today, Otto looks forward to commencing production at Edirne and also remains
focused on completing the 3D seismic campaign in SC 55 in the Philippines. The
company is about to commence the 2D seismic campaign in SC 69 in the Philippines
and has also a focus on the Australasia and South East Asia region for business
growth following the completion of exits from Argentina and Italy.
Galoc has arrived and Edirne follows closely behind.

Through executing astute business strategies and continuing to grow at a quick yet manageable rate, Otto Energy is poised to become a big player in both the Turkish and Philippine oil and gas plays and beyond.