Otto Energy sets a date for Nanushuk prospect drilling, on Alaska North Slope

WEST PERTH -- Otto Energy Limited has advised that it has executed a binding term sheet agreement that will see Otto participate in the drilling of a highly prospective Nanushuk oil trend exploration well within its Western Blocks on the Alaska North Slope in early 2019. Final definitive agreements are expected to be executed within 30 days. Otto along with its consortium partners have exclusivity over the opportunity.

Highlights:

• Otto’s technical team has generated a 400-MMbbl gross best estimate prospective resource target on the Alaska North Slope
• Drilling target is a direct analogue to the Horseshoe-1/1A oil well drilled in 2017
• Horseshoe-1/1A is part of the Bbbl plus Nanushuk oil play-fairway, one of the largest, most exciting recent conventional oil discoveries on the Alaska North Slope
• Otto has secured well-funded consortium partners to execute the drilling
• Otto has increased its working interest to 22.5% in the prospect leases

The estimated quantities of petroleum that may potentially be recovered by the application of future development projects relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.