Otto Energy Limited (ASX:OEL) Announce The Completion Of Erdine Gas Plant System And A Turkey Exploration And Development Update
Gas sales will commence following completion by BOTAS, the state-owned pipelines and trading company in Turkey, of a hot tap on its 14" main line to create the delivery point for the Edirne gas. The Joint Operators are in the process of retrofitting the hot tap fitting to accommodate Botas' requirements. The hot tap is expected to be completed near the end of March with first gas sales shortly thereafter.
Otto has finalised gas gathering and tolling agreements with the Joint Operators of the Edirne Gas Plant to process the gas from the Edirne Fields which is jointly owned with Otto. As previously announced, all gas production from the Edirne licence will be sold via dedicated sales arrangement to AKSA Dogalgaz Toptan Satis A.S at a 15% discount the Industrial Interruptible Tariff benchmark set by BOTAS and Otto has elected not to participate in the Gas Plant ownership. Otto expects that the discounted gas price in the short term will be between US$7.00 to US$8.00/ GJ. The discounted gas price will change over time reflecting amendments in the tariffs set by BOTAS.
The Edirne Joint Venture partners comprise Otto which holds a 35% interest in the Edirne Licence and Joint Operators Transatlantic Mediterraean Int (TEMI) (55%) and local Turkish company Petraco (10%).
Phase 2 Drilling Program
The third exploration well in the phase 2 drilling program, Yolboyu-1 well reached a total depth of 2,000 metres (m) on 15 March 2010. Preliminary evaluation of well logs indicates the potential of gas in the Upper Danismen Formation and the well will be suspended for future evaluation.
The Operator is preparing to move the rig next well, Somurcali-1.
About Otto Energy Limited
Based in West Perth, Otto Energy Limited (ASX: OEL) is an international exploration and production company that has assembled a balanced portfolio of oil and gas assets in the Philippines, Turkey, Italy and Argentina.
As of mid 2008, Otto expects to receive revenue from production at the Galoc Oil Field in the Philippines which will be used to fund further development and exploration across all of the Company’s highly prospective assets. Otto is opportunity rich with an exploration portfolio that includes additional discoveries that are under development, approximately 20 drillable prospects covered by new 3D seismic and well over 60 exploration leads which are being matured as follow-up potential. Consequently, Otto has an active exploration and appraisal drilling program in 2008/2009.
Otto Energy Limited