Otto Energy Limited: ST 224 exploration drilling to commence mid-October
Thursday, Oct 05, 2017
Otto Energy Limited (ASX:OEL) (‘Otto’ or the ‘Company’) is pleased to announce the drilling of a well within the South Timbalier 224 (‘ST 224’) lease in the Gulf Of Mexico shelf will commence shortly. Otto holds a 25% working interest in ST 224 which is operated by W&T Offshore. The Enterprise 264 drilling rig is expected to be on location within the coming week in preparation for drilling of this well.

Drilling will target a large, amplitude supported, high CGR (condensate gas ratio) gas condensate exploration prospect located in the prolific Bul. 1 trend.

The prospect, which sits in approximately 170 feet of water, will be drilled using the Enterprise 264 jack up drilling rig. The well has a relatively shallow target depth of 10,800ft (TVD) (11,439ft (MD)) and is expected to take around 55 days to drill and evaluate.

Given the high chance of success of this opportunity, the well has been planned so as to optimize a subsequent development. Should significant hydrocarbons be intersected, the plan is to accelerate development by completing this first well as a producer. Several existing production platforms fall within tie-back distance of the exploration well providing multiple options for rapid development. Otto is confident that a discovery can be brought on to production quickly and cost effectively.

Otto’s Managing Director, Matthew Allen, commented: “We are very excited to be involved with the drilling of the ST 224 well so soon after securing a 25% interest in this highly prospective opportunity. With an experienced Gulf of Mexico operator in W&T Offshore and a partnership which includes a very successful Gulf of Mexico prospect generator such as Houston Energy we feel confident that exploration drilling and subsequent development activities will be conducted in a quick, safe and cost effective manner.”

For more information, please visit: http://www.ottoenergy.com

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