Focus on Gulf of Mexico slide image

Focus on Gulf of Mexico

Alaska Otto to Drill Large Nanushuk Oil Prospect on the Alaska North Slope in Early 2019 • 400 MMbbl² gross best estimate prospective resource target on the Alaska North Slope. Otto's 18.75% net revenue interest (before Great Bear 10% back in - refer table) would be 75 MMbbls². • Winx-1 drilling target is a direct analogue to the Horseshoe-1/1A oil well drilled in 2017' located less than one mile to the west. • Horseshoe-1/1A is part of the billion barrel plus Nanushuk oil play-fairway, one of the largest recent conventional oil discoveries on the Alaska North Slope'. • Oil Search's (OSH) Pikka discovery to the west and the Conoco-Phillips Meltwater unit facility ~10 miles to the east. Nearby infrastructure ensures cost effective route to market in event of a discovery. Project economics will be further enhanced by the shallow nature of the oil pool. • Rig has been contracted for the Winx-1 well to be drilled in the first quarter of 2019. Western Blocks Focus Area Horseshoe-1 Colville River ConocoPhillips 2018 Bear 3D Nanushuk play-fairway Kalubik Thets Nikalchuk or Qoogruk uigsut le Oil Sands Tarn Ithill River-1 Meltwater Central Blocks Focus Area Sandpiper ARCTIC OCEAN Northstar Endicott Greater Kuparuk Greater Prudhoe Bay Liberty Otto Energy Alaskan Acreage Position "Hemi Springs Mickelson Badami Recent drilling Potential Nanushuk play fairway 0 5 10 15 20 KILOMETRES 0 10 15 20 MILES The relevant interests in the Western Blocks under the commercial agreements are as follows (subject to regulatory approval by the State of Alaska): Net Revenue Interest* (before back-in) 18.75% Working Interest (after back-in) Current Working Interest Post-transaction Working Interest (before back-in) Paying Interest (before back-in) Otto Energy 10.8% 22.5% 25.0% 20.0% 88 Energy (Drilling 36.0% 40.0% 30.00% 32.0% Management) Red Emperor 31.5% 35.0% 26.25% 28.0% Great Bear 89.2% 10.0% 8.33% 20.0% Petroleum** State of Alaska 16.67% 100% 100.0% 100% 100% 100% 1. Referenced from the Repsol press release of 9 March 2017. 2. Refer ASX release dated 25 June 2018. OTTO ENERGY | ASX: OEL *Government royalty of 16.67%. **Currently Operator of record on leases. 16
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