• All major permits (excluding Permit to Drill) granted for the drilling of the Winx-1 exploration well
• Permit to Drill on schedule for submission prior to year-end, approval expected January 2019
• Preparations for ice road and pad construction underway, build start planned January 2019
• Spud of Winx-1 exploration well targeting multiple objectives on schedule for February 2019

Otto Energy Limited advises that 88 Energy, in its capacity as Drilling Manager, has now received approval for all the major permits required for the drilling of the Winx-1 exploration well except for the “Permit to Drill”. As planned, the Permit to Drill is due for submission prior to the end of the year and approval is expected in January, prior to spud in February 2019.

The Winx-1 exploration well is located onshore North Slope of Alaska, ~ 4 miles east of the successful Horseshoe#1/1A well, which substantially extended the fairway for the successful Nanushuk oil play. The prospect has a best estimate unrisked prospective resource of 400 million barrels of oil (net to Otto 75 million barrels) over multiple stacked objectives, including the Nanushuk Formation (primary target).

Otto is paying 25% of the well costs to earn its 22.5% working interest.