The $US5.5 million received will be used to pay for Otto’s share of its ongoing Turkish exploration programs and for appraisal and development of existing discoveries to first gas sales, the company said yesterday.
“Turkey represents Otto’s nearest term cashflow asset,” chief executive Alex Parks said.
“Otto is pleased to have now received all the funds from Incremental as scheduled, to leave us fully funded in Turkey through the ongoing exploration programs and for appraisal and development costs required to get us to first production in 2008.”
Having farmed out 30% of its Edirne licence to Incremental, Otto has a 35% stake in that lease and is gearing up for a five-well exploration drilling campaign scheduled to start in December.
“The 149 square kilometre 3D survey is now 65 percent complete and scheduled for completion at the end of September,” Otto said.
“The survey has been designed to cover the central and so far most prospective part of the permit, including the existing three gas discoveries.”
The joint venture is acquiring wellheads, casing and tubing, and Otto said it expected processed and interpreted data would be available in time to finalise well locations for the drilling campaign.
The Edirne JV comprises: Merty Energy Ltd (joint operator) 10%, Petrako Ltd (Joint Operator) 10%, Otto Energy 35% and Incremental Petroleum 45%.
Otto has also farmed-out 60% each of the Catalca and Ortakoy licences to Incremental Petroleum.
