Otto Energy Limited (ASX:OEL) Quarterly Report For The Period Ended 31 December 2009

Perth, Jan 21, 2010 AEST (ABN Newswire) - The quarter ended 31 December 2009 has seen Otto Energy Limited (ASX:OEL) (PINK:OTTEF) make substantial progress in delivering shareholder value.

The Galoc oil field has now produced a total of 3.6 mmbbls of crude oil and delivered 10 offtakes to customers. The field continues to produce in line with expectations and Otto is working with the Operator to continue to improve facility performance and plan for the appraisal of the remainder of the field.

First production from the Edirne licence in Turkey is expected towards the end of the first quarter of 2010. The Edirne Joint Venture has secured a Gas Sales Agreement to sell all gas produced from the licence to AKSA.

1,000km2 and 2,000km2 of new 3D seismic will provide valuable exploration data and allow Otto to establish a comprehensive subsurface understanding of this highly prospective permit area. Otto is pleased to be working with BHP Billiton to acquire and process the additional 3D seismic and working towards securing a farm-in to the SC 55 permit.

Otto recently entered into a seismic acquisition and farm-in option agreement with BHP Billiton in Service Contract 55 in the Philippines. The commitment by BHP Billiton to fund between The farm-out market for the Company's remaining Philippines permits continues to strengthen and Otto has received numerous expressions of interest in this acreage. Otto is confident that it will secure further farm-outs of our acreage in 2010.

The narrowing of our geographic focus has seen Otto exit the investment in the Santa Rosa block in Argentina. Continued review of existing assets to refine the geographic focus will occur in 2010.

Otto is debt free, has equity in one producing oil field with production expected from the Edirne gas field in the coming quarter. Otto has a significant interest in high potential Philippine acreage that is attracting attention from the farm-out market. 2010 holds significant promise for our shareholders.

For the complete Otto Energy Quarterly Report ending 31 December 2009, please click the link below:

http://www.abnnewswire.net/media/en/docs/62114-ASX-OEL-477357.pdf

Contact

Matthew Allen Chief Financial Officer Tel: +61-8-6467-8800 Email: info@ottoenergy.com