excellent fits in nicely..2 October 2008PO VALLEY, ITALY...

excellent fits in nicely..

2 October 2008
PO VALLEY, ITALY EXPLORATION UPDATE
Otto Energy Limited (ASX: OEL) and joint venture partner and the Operator
AIM-listed Ascent Resources Plc have confirmed the drilling schedule for the
Gazzata-1 onshore gas exploration well in the Cento - Bastiglia permits of
Italy�fs highly prospective Po Valley. The drilling of the Gazzata-1 well is now
planned to commence in January 2009.
The Gazzata-1 well is to be drilled using the new HH-200 drilling rig of
Perazzoli Drilling. This rig is currently drilling its first well on a third party
contract in southern Italy where its performance exceeds expectations, and
subsequently it is available earlier than planned.
Ascent Resources has advised Otto that the Joint Venture has the flexibility to
swap drilling slots, and as such, it is now planned for the rig to drill two other
third party wells before mobilising to the Gazzata-1 location in January 2009.
By swapping the slots the drilling of the well in Italy will then comfortably fit in
with the commencement of cash flow at Otto�fs Galoc Oil Field in the
Philippines.
Otto is earning a 50% working interest via the funding of Gazzata-1 well and a
second well if Gazzata-1 is a significant discovery. There is a cap on the
expenditure for both the Gazzata-1 and the second well, above which the
contribution is 50/50.
The Gazzata-1 well targets a seismically defined gas exploration over 8 square
kilometres in area and which is c.2400 m deep in Pliocene aged formations.
CEO of Otto Energy Alex Parks said, �gWe look forward to the drilling of
Gazzata-1 which we believe to be highly prospective, and we are fortunate to
have the flexibility to swap the rig slot to fit in with our ideal schedule.�h
Yours faithfully,
_________________
Alex Parks
Chief Executive Officer
OTTO ENERGY �] AT A GLANCE
Otto Energy is an ASX�]listed company
that in four years has developed a
portfolio of highly prospective oil and
gas exploration and development
projects.
Predominantly focused on Southeast
Asia, the Company has interests in
five offshore licences in The
Philippines, four of which are
operated. Otto also has nonoperated
assets in Italy, Turkey and
Argentina, which provide a balanced
portfolio of short, middle and long
term projects with significant growth
potential.
CAPITAL STRUCTURE
ASX code OEL
Shares on issue 477,423,863 +
43.5M unlisted ops
Share price A$0.30 (at 22.9.08)
Market cap ~A$143 M
Listed on ASX Dec 2004
Top 20 own 56.4% of stock
BOARD OF DIRECTORS
Rick Crabb Chairman
Jaap Poll Non exec director
Ian Macliver Non exec director
Rufino Bomasang Non exec director
John Jetter Non exec director
Emma McCormack Company Secretary
Alex Parks CEO