Focus on Gulf of Mexico

Gulf Coast Package - Key Terms Commitment to eight well drilling program with Hilcorp Energy • Otto is participating in a firm eight well program with a right of first offer to a subsequent program, if Hilcorp elect to offer a program to third parties. • Should either the Tarpon or Mustang prospects be successful then Otto has ground floor rights to participate in the nearby Damsel and Corsair/Hellcat opportunities in addition to the other eight wells. • Otto to earn a 37.5% working interest by paying 50.0% of the costs of drilling and setting casing or plugging and abandoning at each prospect plus lease acquisition costs. The estimated cost of the commitment to Otto is US$37.5 million. • Well Cap - Otto has the option to discontinue participation in each prospect well if actual costs exceed the approved expenditure budget by 20%. If Otto elects to not continue, it will forfeit rights to that prospect. • Program Cap-Once Otto has incurred a total amount relating to the initial eight wells of US$42.5m, it will have the option to elect (but not the obligation) to participate in the remaining undrilled prospects in the initial eight well program. If Otto elects to not participate in any undrilled prospects, it will forfeit rights in those prospects. OTTO ENERGY | ASX: OEL 13

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