Otto signs farm-in agreement with Red Emperor

Otto Energy Ltd.’s subsidiary Otto Energy Philippines Inc. has signed a farm-in agreement with Red Emperor Resources NL to earn a 15% working interest in Service Contract (SC) 55, offshore the Philippines.

Red Emperor, listed on the ASX and AIM, has agreed to farm in to SC55 and earn a 15% working interest by participating in the drilling of the Hawkeye-1 exploration well.

This farm-in, along with the $24.5 million funding committed by BHP Billiton and the expression of interest received in January from PNOC-EC for a further 15% working interest, ensures that Otto is fully funded and has mitigated significant financial risk associated with the drilling of Hawkeye-1.

Otto has also executed a letter of intent with Maersk Drilling to secure the UDW drillship Maersk Venturer to drill the Hawkeye-1 exploration well.

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