Otto Energy: Definitive Agreements Executed for Alaska Western Blocks

Definitive agreements have been executed for Otto to go to 22.5% working interest Large prospect to be drilled in early 2019
Permitting underway

Otto Energy Limited (ASX:OEL) (“Otto” or the “Company”) is pleased to advise that, via its wholly owned subsidiary Borealis Alaska LLC, it has executed definitive agreements with Great Bear Petroleum, along with the Consortium Partners, 88 Energy (Captivate Energy Alaska, Inc) and Red Emperor, to acquire the majority of Great Bear's working interest in exchange for drilling a commitment well on the Western Blocks prior to 30 May 2019.

The Western Blocks contain a 3D seismic defined oil prospect in the successful Nanushuk play fairway with a gross best estimate prospective resource volume of 400 MMbbls and a geological chance of success in the range of 25-30%. Otto's 18.75% net revenue interest (before Great Bear 10% back in – refer table below) in the prospect would be 75 MMbbls. Please note that information in relation to the prospective resources was first released on 25 June 2018.

Prospective Resource Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons.

Pursuant to the agreement, the Consortium Partners have funded their share of a US$3,000,000 performance bond to the State of Alaska and a US$500,000 cash payment to Great Bear as part of the consideration for the acquisition of the working interests in the Western Blocks.

The details of the working interests are described in the below table:

 page1image4173966288 page1image4173967104

Current Working Interest


Working Interest (before back-in)

Paying Interest (before back-in)

Net Revenue Interest* (before back-in)


Working Interest (after back-in)

Otto Energy

page1image4173941344 page1image4173941824


page1image4173944384 page1image4173944928





88 Energy (Drilling Management)






Red Emperor


page1image4175298000 page1image4176918544






Great Bear Petroleum**






State of Alaska











*Government royalty of 16.67%. **Currently Operator of record on leases.

For further details related to the transaction, please refer ASX announcement dated 25 June 2018. Please note that information in relation to the prospective resources was first released on 25 June 2018.

Internal interpretation by incoming operator 88 Energy of the 3D seismic over the Western Blocks has confirmed the original interpretation by Otto's technical team, which identified the 400 million barrel prospect. A location to optimally test the prospect has been selected and permitting is underway, ahead of scheduled drilling in the first quarter of 2019.


Visit source site

Otto Energy88 EnergyAlaskaDrillingASXGreat Bearonshore

More items from oilvoice

Equinor Deepens in Offshore Wind in Poland

Equinor has exercised an option to acquire a 50 % interest in the offshore wind development project Bałtyk I in Poland from Polenergia. This transaction is a follow-up of the agreement between the two companies which came into force in May 2018 , by which Equinor acquired a 50 % inter ...

OilVoice Press - OilVoice

Posted 3 months agoPress > EquinorEquinor EnergyPoland +2

Nigeria has highest capex on crude and natural gas projects in sub-Saharan Africa Over Next Seven Years, says GlobalData

Nigeria accounts for more than 34% of the proposed capital expenditure (capex) on planned and announced crude and natural gas projects in the sub-Saharan Africa over the period 2018–2025, according to GlobalData , a leading data and analytics company. The company's report: ‘H2 2018 Production ...

OilVoice Press - OilVoice

Posted 3 months agoOpinion > GlobalDataNigeriaCrude +5

CNOOC Signs Strategic Cooperation Agreements with 9 International Oil Companies

HONG KONG, Dec. 18, 2018 /PRNewswire/ -- CNOOC Limited (the "Company", SEHK: 00883, NYSE: CEO, TSX: CNU) announced today that its parent company, China National Offshore Oil Corporation (CNOOC), has signed Strategic Cooperation Agreements with 9 international oil companies including: Chevron, Conoco ...

OilVoice Press - OilVoice

Posted 4 months agoPress > CNOOCChina National Offshore Oil CorporationChevron +11

Total Announces the Distribution of its Second 2018 Interim Dividend

The Board of Directors met on December 12, 2018 and declared  the distribution of a second interim dividend for the 2018 fiscal year of €0.64 per share, in accordance with the Board's decision of July 25, 2018, an amount equal to the first 2018 interim dividend and an increase of 3.2% compared to t ...

OilVoice Press - OilVoice

Posted 4 months agoPress > TotalDividend

Methyl Tertiary Butyl Ether Capacity Will Grow at a CAGR of 16.8% in India Over Next Four Years, says GlobalData

India's Methyl Tertiary Butyl Ether (MTBE) plant capacity is forecasted to grow at a compound annual growth rate (CAGR) of 16.8% from 0.211 million tons per annum (mtpa) in 2017 to 0.460 mtpa in 2022, according to GlobalData , a leading data and analytics company. The company's report: ‘ Met ...

OilVoice Press - OilVoice

Posted 4 months agoOpinion > GlobalDataIndiaMTBE
All posts from oilvoice