Galoc Oil Field – Operations Update

Otto Energy Limited has received an update from the field Operator, Galoc Production Company WLL (GPC), on the status of the re-instatement of the Mooring and Riser System (M&RS) in advance of resuming production at the Galoc Oil Field.

Re-instatement of the M&RS is continuing following the weather related disconnection undertaken in late June 2009.

Conditions in the Field have improved and, with an acceptable forecast for the coming days, preparations to resume activities in the Field are underway. Once repairs are completed, the riser element of the M&RS will be reconnected to the FPSO and the full system function tested prior to resuming production operations. The remaining tasks are expected to take 1-2 weeks, subject to any further weather interruptions.

The Galoc field is located in Service Contract SC14-C (Galoc Sub Block) in 290m of water approximately 65km north west of Palawan in the Republic of the Philippines. The development involved the construction of two subsea completed horizontal production wells, with extended reservoir contacts, tied back to a Floating Production Storage and Offloading (“FPSO”) facility via a short seabed pipeline and mid water riser system. Most likely oil reserves as estimated at time of commitment to the development in 2006, is approximately 10 million barrels. The reserves estimate and requirement for additional wells and facility capacity will be reassessed following an analysis of results from initial field production performance.

The participating interests in the Galoc Field are as follows:Galoc Production Company (Operator): 59.84473%; Nido Petroleum Philippines Pty Ltd:22.87952%; Oriental Petroleum & Minerals Corporation/Linapacan Oil Gas & Power Corporation; 7.78505%; The Philodrill Corporation: 7.21495%; Forum Energy Philippines Corporation: 2.27575%.

Galoc Production Company is owned by; Vitol Group 68.6%; Otto Energy Limited 31.4%.