Otto is currently one of the largest landholders of prospective acreage in the Philippines, through the Company's wholly-owned subsidiary NorAsian Energy Ltd.

Otto has an 18.78% indirect interest in the Galoc Oil Field, located in Service Contract (SC) 14C offshore Philippines, via a 31.38% shareholding in the field Operator, Galoc Production Company WLL (GPC). GPC holds 59.84% equity in the Field.

Production at Galoc commenced in October 2008.

Otto also holds substantial equity positions and is Operator in four Service Contract areas totalling more than 20,000 km² of offshore acreage.

Otto became Operator of SC50, SC51 and SC55 following acquisition of NorAsian in 2005/06. In May 2008, the Philippines Department of Energy (DOE) awarded NorAsian the fourth permit for SC69.

Otto is currently in the process of seeking farm-in partners for the Philippines projects in SC50, SC51 and SC69. For more information on Otto's Farm-Out opportunities click here.

Bringing in suitable partners will allow Otto to balance risk and spread exploration dollars across a bigger program to statistically enhance the overall chance of making further commercial discoveries.

SC50 (Otto 85%) holds the Calauit and Calauit South Oil Fields which were discovered in 1991/92. The fields lie in shallow water depths that range from 50m to 100m and the area is situated at the northeast of the oil and gas prolific Palawan Basin. Otto has recently acquired over 2400 square kilometers of new 3D seismic data in the block.

SC51 (Otto 80%) is situated in the East Visayan Basin in the central Philippines. The area consists of a northern and southern part with the two areas being separated by a distance of approximately 80km. The large Argao & Bahay prospects are located in the south block, with over 9 additional leads recently defined from modern 2D and 3D seismic.

SC55 (Otto 85%) covers an area of 9,000km² in the southwest Palawan Basin. It is a deepwater block in the middle of a regional oil and gas fairway, which extends from the productive region offshore Borneo in the southwest to the Philippine production assets in the northeast including the Malampaya oil and gas field, which is currently the largest producer of condensate and gas in the Philippines. Otto has recently acquired over 2400 square kilometres of new 3D seismic data in the block.

SC69 (Otto 70%) was awarded to Otto/NorAsian in May 2008, and is located offshore in the East Visyan Basin adjacent to SC51. It has more than 20 identified structures with oil and gas potential. Otto has recently acquired 700 kilometres of new 2D seismic data as part of the prospect definition phase in this block

SC14C (18.78% indirect) Offshore northwest Palawan basin, SC14C is in midwater depths and contains the Galoc Oil Field. Galoc field commenced production in October 2008.

SC50 - "Calauit Oil Fields"

(OTTO 85% interest)

Otto has an 85 per cent interest in SC50, which is situated at the north east end of the oil and gas prolific Palawan Basin. Water depths range from 50 metres to 150+ metres. Calauit and Calauit South oil discoveries were made in 1991/92.

Otto judges that the Calauit Oil Field contains recoverable of 1.5 (P90) to 15 (P10) million barrels of crude oil.

SC51

(OTTO 80%)

SC51 consists of two sub-blocks over the East Visayan Basin. This is an exciting exploration block in approximately 300m of water with two ready to drill prospects that are de-risked by DHI's and 3D seismic. Interpretation of the 3D offshore seismic data, acquired on the southern sub-block in late 2007 is now completed.

SC55

(OTTO 85%)

SC55 covers an area of 9,880 km² and has never previously been held as an exploration block. Otto has recently acquired two 3D seismic surveys with a coverage of around 2,400km^2.This survey covers the excisting Haweye prospect which is an amplitude supported play. A deep water block with massive reef and turbidite reservoir potential with Direct Hydrocarbon Indicators, Marantao has prospective resources of 3.3 tcf gas or >1 billion bbls oil, with a number of further leads for follow up.

SC55: MULTI BILLION BBL TARGETS

SC14C - "Galoc Oil Field"

(OTTO indirect interest 18.78%)

Otto has an indirect interest of 18.78 per cent in the Galoc Oil Field through its 31.38% shareholding in the field operator, Galoc Production Company WLL (GPC) which holds 59.84% interest in the field. A subsidiary of the Vitol Group owns the remaining stake (68.62%).

SC14C is situated offshore Northern Palawan in a proven oil and gas fairway which also contains the Philippines largest oil and gas field, Malampaya. Water depth at the Galoc Oil Field is around 290m.

Production commenced in October 2008. Over 2.4 million barrels of oil have already been produced from the Field.

SC69

(OTTO 70%)

SC69 block, awarded to Otto in May 2008, has more than 20 identified structures with potential for both oil and gas. Located adjacent to SC51, SC69 has excellent follow up potential should Otto have exploration success in SC51 and significant exploration potentential in its own right. Otto has recently acquired 700kilometers of new 2D seismic to help prospect definition in particular over the large Miocene reefal complex in the block.