Otto Energy announcement overview

Otto Energy Limited (ASX:OEL) has announced the commencement of drilling for the F5-ST well at the SM 71 lease in the Gulf Of Mexico Shelf. The Enterprise 264 Jack Up rig arrived on location on 1 October 2024, consistent with the previously advised timing. The well, operated by Byron Energy Inc., is proposed to be drilled to a depth of 7,551' MD / 6,800' TVD, targeting the prolific Pliocene aged D5 sand which has produced over 5 MMbbls at SM 71 since 2018 from the F1 and F3 wells.

Executive Commentary on F5-ST Well Drilling

It is an exciting time for Otto Energy shareholders with the Enterprise 264 rig on location and the drilling of the F5-ST well at SM 71 to commence shortly. The well will investigate additional oil production acceleration at SM 71 for a relatively low dry hole cost exposure and for what could be a very impactful well for the company. We will continue to update the market on the progress of this well.

Summary of Otto Energy's F5-ST Well Drilling Announcement

Otto Energy Limited (ASX:OEL) has initiated the drilling of the F5-ST well at the SM 71 lease in the Gulf Of Mexico Shelf. The well aims to target the prolific Pliocene aged D5 sand, with an anticipated flow rate of 500-1,500 bbl/d oil and a 60% probability of commercial success. The drilling costs are estimated at US$11.3 MM (US$5.65 MM Otto share) with additional hook-up costs of US$0.3 MM (US$0.15 MM Otto share), all to be funded from Otto's existing cash reserves. The well is expected to take 12 days to reach a Total Depth of 7,551 MD / 6,800 TVD, a further 14 days to complete the well, and an estimated further 7 days to bring the well onto production. Otto Energy and Byron Energy each hold a 50% WI and 40.625% NRI in the SM 71 lease. The company will continue to provide updates on the progress of the drilling.