OTTO TO PARTICIPATE IN DRILLING NANUSHUK PROSPECT IN ALASKA NORTH SLOPE

June 26, 2018

Otto Energy Limited advised that it 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. Full details of the agreement are set out on the following pages. 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.”
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.
Through its agreements with Great Bear Petroleum Operating (“Great Bear”) in 2015, Otto acquired between an 8% and 10.8% working interest (equivalent to 56,712 net acres) in two areas of Alaskan North Slope exploration acreage held by Great Bear.
Great Bear is a private exploration company focused exclusively on exploring and developing conventional and unconventional resources on the North Slope of Alaska. (Source: Otto Energy)