Otto Energy Limited (ASX:OEL) Quarterly Report For The Period Ending 30 September 2009

Perth, Nov 2, 2009 AEST (ABN Newswire) - Otto Energy Limited (ASX:OEL)(PINK:OTTEF) is pleased to present its September 2009 quarterly activities report.

PHILIPPINES

Service Contract 14c - Galoc Oil Field (OEL indirect 18.78% WI) Otto has an 18.78% indirect interest in the Galoc Field which is held through its shareholding in the Galoc Production Company W.L.L. (GPC), the Operator of the Galoc Field.

Since recommencing production in August 2009 production uptime at the Galoc Field has been approximately 99% for the quarter. During the quarter, the field has been producing within expected production rates of approximately 11,000 barrels of oil per day.

Cumulative gross oil production for the quarter was approximately 547,000 barrels. Two offtakes totalling approximately 539,000 barrels were successfully lifted during the quarter. Otto has commenced receiving cash distributions from GPC with $3.338 million received from oil sale revenues in the quarter. As outlined in the Appendix 5B these cash distributions are curently being offset against a loan receiveable from GPC.

Subsequent to the end of the quarter, production has been temporaily suspended pending completion of a cargo off-loading which has been delayed due to an issue with the FPSO export hose. The Rubicon Intrepid FPSO remains connected to the mooring and riser system and production will recommence once the cargo has been offloaded.

Otto has estimated Galoc gross remaining 2P Reserves to be 8.4 million at 30 June 2009 with Otto's share of the Galoc remaining 2P Reserves being approximately 1.46 million barrels. Galoc gross 2C and 1C Contingent Resources are estimated by Otto to be 6 million barrels and 2 million barrels respectively, a significant proportion of which Otto expects to be moved into the Reserves catergory in the event of a Phase 2 investment decision to develop.

Philippines Service Contracts SC 50, 51 and 55

During the quarter, the Philippines Department of Energy approved the request of Service Contract (SC) 55 joint venture partners to revise the work programme and budget for its current exploration sub-phase. The joint venture now has until August 2010 to complete a combined 2D/3D seismic programme and until August 2011 to drill one deep water well.

The Philippines Department of Energy also approved work programme revisions to SC50 and SC51. Under the revised work programmes two exploration wells will have to be drilled in SC50 by March 2011 and one exploration well in SC51 prior to December 2010.

Otto has recommenced farm down activities on its operated Philippine Service Contracts and is actively engaging with a number of potential farminees.

TURKEY (OEL 35% WI; Non-operated)

The Operator has commenced construction of the Edirne Gas Plant with site earthworks, pipelaying and compressor installation currently underway. The Gas Plant is expected to be ready for commissioning and start up in the the first quarter of 2010. Otto is currently negotiating a Gas Gathering (Tolling) Agreement with the Joint Operators (PEMI and Petraco) who will own and operate the Gas Plant.

A preferred gas buyer has been selected by the Operator and Otto following the receipt of bids from a number of parties. Gas Sales Agreement negotiations with the preferred bidder are currently being finalised.

Following the completion of its most recent drilling campaign in Turkey, Otto has estimated its share (35%) of gross 2P Reserves to be 0.41 mmboe (2.47 Bcf of gas). Otto's share of additional 2C Contingent Resources have also been estimated at 0.09 mmboe (0.53 Bcf of gas) from the Kirmizihoyuk and Kuzey Ikihoyuk gas discoveries during the year. These two fields are classified as Contingent Resources at this stage as studies on these discoveries are continuing and the wells are yet to be incorproated in the Edirne Gas Development Plan.

ITALY (OEL Earning 50% WI; Non-operated)

During the quarter accrued costs associated with the Gazzata-1 well were paid by the Company.

Otto is accessing new seismic data over the Centro-Bastiglia permits to assist in forming a view on the exploration potential of the block and any future exploration programme.

ARGENTINA (OEL 32.48% WI; Non-operated)

Otto has undertaken a technical review of the Santa Rosa block and well data obtained and has decided not to continue further exploration work in this block.

CORPORATE

CFO Appointment

Otto is also pleased to announce the appointment of Mr Matthew Allen as its new Chief Financial Officer, following the departure of Ms Ida Holt. Mr Allen has significant financial and hydrocarbon reserve accounting experience with a career spanning over 15 years in the oil/gas and finance industries. Prior to joining Otto, Mr Allen was the Finance Manager of Woodside Energy in Perth and Dubai.

Otto's cash reserves at the end of the quarter were A$10.554 million.

For the complete Otto Energy Quarterly Report for the period ending 30 September 2009, please click the link below:

http://www.abnnewswire.net/media/en/docs/61692-ASX-OEL-467512.pdf

Contact

INVESTOR / MEDIA INQUIRIES Jill Thomas, Investor Relations Mgr Tel: +61-8-6467-8803 Email: thomas@ottoenergy.com