Otto Takes Control of Gulf of Mexico License

May 9, 2019

Otto Energy now owns 100% interest in the VR 232 license in the shallow water US Gulf of Mexico after acquiring the remaining 50% working interest Byron Energy.

VR 232 is adjacent to Otto’s 50% owned South Marsh Island Block 71 oil field and production platform. The platform has capacity to produce up to 5,000 barrels p/d from up to six wells. More than 2 Bcf of gas and 30 million barrels of oil have been produced from VR 232 between 1995 and 1997.

Otto, which is headquartered in Perth, Australia, has recently acquired a modern, high quality 3D seismic data set over the SM 71 area (including VR 232) and part of the work being done will focus on the prospectivity of VR 232 given its proximity to SM 71.

Otto Energy Managing Director Matthew Allen says: "Otto is pleased to take its interest in VR 232 to 100% and assume operatorship of the license . Otto’s geoscience team have significant experience in the area with strong local prospect calibration. There is the potential for any discoveries from VR232 to be within tie - back range of our SM 71 facility where there is with capacity for up to 5,000 bbl p/d and six wells."

The VR 232 lease is subject to a 12.5% Federal Government royalty and the lease rental is US$31,681 per annum. The lease expires in June 2023.



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