• 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 billion barrel 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.

Otto Energy Limited 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.

Otto’s Managing Director, Matthew Allen, commented: 
“I am personally very pleased with Otto’s technical team in putting together the Western Blocks drilling prospect. Our technical team have developed this prospect in-house and demonstrated their continued excellent geological and geophysical skills. This is an exciting prospect in a highly significant emerging new trend in one of the oiliest provinces in North America.

We are also very pleased to be joined by consortium partners 88 Energy and Red Emperor, along with existing partner Great Bear, in the drilling of the well. This is a like-minded joint venture consortium that is funded and highly motivated to get this initial test well drilled in early 2019.”