Otto Energy announces that it will acquire 50% of the Bastiglia- Cento Exploration Permits, in the Po Valley of onshore Italy, from Ascent Resources plc.
Highlights
• The two adjacent Bastiglia - Cento Exploration Permits are considered highly prospective with multiple hydrocarbon prospects and leads already identified
• The first well, Gazzata-1, will be drilled around September 2008, targeting prospective gas resources of over 100bscf equivalent to potentially over A$200 million in value to Otto.
• Minimum commitment for Otto to earn 50% in the two permits is approximately A$10 million and in the event of a significant commercial gas discovery in the first well, Otto will also fund 100% of drilling and testing of a second well.
• Otto intends to purchase the seismic out of current funds and fund the drilling out of anticipated revenues from the Galoc Oil Field, which is scheduled to commence production in April 2008.
• Otto’s joint venture partner and operator of the Italian permits is Ascent Resources Plc, an AIM-listed company with an established office in-country and considerable drilling expertise in the area.
Commenting on the announcement Alex Parks CEO of Otto Energy said:
“This new acquisition is a perfect fit for Otto as we continue to build our portfolio of onshore and offshore oil and gas assets with a pipeline of projects that span across exploration, development and production.
“The Bastiglia - Cento Exploration permits are considered to be highly prospective and relatively low risk. The Gazzata prospect alone could be worth up to A$200 million to Otto in the event of a commercial discovery, and there is significant follow up potential in a variety of different play types, some of which could hold up to 1 TCF gas resource potential.
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