1st May 2008 Australian Securities Exchange By ASX online Otto makes 6th Gas Discovery in Turkey Joint venture partners Otto Energy (ASX: OEL) and Incremental Petroleum (ASX: IPM) are pleased to announce the confirmation of several gas bearing intervals in Ortakci-1 exploration well, the third of a 5-well drilling program currently underway in the Edirne Licence in Western Turkey. Highlights • Ortakci-1 encountered approximately 20m net gas pay intervals located between 238m and 332m, with excellent porosity averaging 25%. • Ortakci-1 was drilled to a total depth of 524m and the present operation is running casing for flow testing once drilling of all five wells is completed. • Ortakci-1 is the largest and western-most of the 17 structures mapped on the 2007 3D seismic, covering an area of approximately 3 sq km. • The drilling rig will now be moved to the 4th well site Arpaci-2, an updip appraisal well of the Arpaci-1 discovery made in 2006. The 5-well program is designed to prove up significant volumes of gas to enable a combination of these gas discoveries to be placed on production by mid-2009. The partners in the Edirne Gas project are Otto Energy 35%, Incremental Petroleum 55%, and Turkish partner and Joint Operator Petraco 10%. Commenting on the news Alex Parks, CEO of Otto Energy said: “This is another excellent result - with a total of six new-field gas discoveries now made from six wells drilled since Otto acquired the Edirne licence in 2004. These small gas fields are relatively close together and can be developed through a central development hub. We look forward to commercializing these discoveries once the drilling and testing program has been completed by end June 2008. .” The attached release from the Joint Operator Incremental Petroleum provides further details on the Ortakci-1 discovery well. Yours faithfully _________________ Alex Parks Chief Executive Officer For further information visit Otto’s website www.ottoenergy.com or contact: Alex Parks Jill Thomas Otto Energy Limited PPR Investor Relations +61 (0) 8 9226 0001 +61 (0) 8 9388 0944 [email protected][email protected] ABN: 38 115 711 601 20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831 Ph: +618 9481 8696 Fx: +618 9481 2394 1 May 2008 Australian Stock Exchange By ASX online • 6th gas discovery in Turkey • 20 metres of potential net gas pay in third well at Edirne • Largest mapped structure on block Incremental Petroleum (ASX: IPM) and Otto Energy (ASX: OEL) are pleased to announce that Ortakci -1, the third well in this year’s five well drilling campaign at Edirne, has encountered some 20m of potential gas bearing net reservoir sands. The sands are located between 238m and 332m. Reservoir properties are excellent, with an average porosity of 29%. The presence of gas is confirmed with wireline pressure measurements and nuclear magnetic logging. Testing of the gas productivity will be undertaken at the end of the drilling campaign in a few weeks. Ortakci 1 was drilled to a total depth of 524m, and the present operation is running casing. The rig will then move to Arpaci 2. ORTAKCI IKIHOYUK ARPACI 2 KUZEY ARPACI 0 5 km 3D AREA LICENCE BOUNDARY LOCATION MAP BATI YAGCI Figure 1. Location of five wells in 2008 Edirne drilling campaign The Ortakci structure is the largest of the 17 structures mapped on the 2007 3D seismic and is a broad feature coincident with strong seismic amplitudes covering an area of about 3.0 sq. km. The excellent reservoir thickness and high porosity greatly enhance the prospectivity of the more western parts of the Edirne concession. ABN: 38 115 711 601 20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831 Ph: +618 9481 8696 Fx: +618 9481 2394 The 2008 drilling campaign involves the drilling of five wells (Figure 1) targeting a combined 10-20 BCF. The programme is designed to prove up significant sales volume of gas to enable a combination of these shallow structures to be placed on production by mid 2009. The partners in the Edirne Gas project are Incremental Petroleum (55%), Otto Energy (35%) and Petraco Energi (10%), who are also joint operator with Incremental. Gerard McGann Managing Director
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