Otto Energy Limited advises that the initial exploration well, SL 192 PP 031, on the Big Tex prospect has commenced drilling from a barge-mounted rig. As at 6am US Central Time on August 29, 2018 the well is drilling ahead at 1038 feet True Vertical Depth.

The well will be drilled to 13,175 ft MD/12,700 ft TVD and is expected to take 55 days to reach total depth. Otto will earn a 37.5% working interest by paying 50% of the costs of drilling and either setting casing or plugging and abandoning the well, after which point Otto will pay 37.5% of all future costs. The well is expected to cost the Company US$4.23 million (50% paying interest).

The exploration well on the Big Tex prospect is targeting the Tex W 16 Sand and Tex W 18 Sand that are Middle Miocene in age. This is a prolific section, having produced from the east in Hilcorp’s East Bay Field, and from the west from the massive West Delta 30 Field, which has produced 562 MMBO and 934 BCF to date. The success case development concept will be a flowline tieback to an existing platform. The prospect has been assessed as having a probability of success of 54%.

Otto’s next announcement in relation to this well, will be when a material event has occurred.

Otto’s Managing Director, Matthew Allen, commented: 
“Otto is excited to be participating in the Gulf Coast drilling program with Hilcorp. Big Tex is the first of an eight well program that provides Otto with the opportunity to materially grow its position in the Gulf of Mexico area of focus and deliver upon our strategy of growing production to 5,000 boepd by 2020.

“Otto is entering a period of very high activity and looks forward to sharing the results of the highly impactful drilling events with shareholders.”