Perth, Aug 29, 2008 (ABN Newswire) - Otto Energy Limited (ASX:OEL)(PINK:OTTEF) through its wholly owned subsidiary NorAsian Energy ("NorAsian") is pleased to advise that operations have commenced for the site surveys in Service Contracts SC50 and SC51 offshore Philippines.

A total of approximately four square kilometres will be covered by the surveys for each of three well sites. The surveys aim to identify potential drilling hazards such as cables, and evaluate the sea bed topography and subsurface for shallow gas drilling hazards.

The site surveys are being conducted in anticipation of the Company drilling two or three wells in the first half of 2009: at the Calauit-2 location in SC50 and Argao-1 and Bahay-1 locations in SC51.

The current operation commenced in SC50 on the 22nd August 2008 and is expected to take approximately a week to complete assuming good weather remains in the area. The SC51 survey will then follow and is expected to be complete by mid September 2008.

Detailed environmental baseline work will also be carried out in SC51. The Company is conducting a number of environmental studies which comprise a benthic survey, marine and coastal water sampling, sediment sampling and a deskbased fish study. Additionally marine mammal observations are conducted during the site surveys. These studies will enable NorAsian to incorporate site specific environmental data into the project planning to enhance environmental safeguards that will be incorporated into the overall project design.