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 Italy is a new country entry for Otto into the established Po Valley area, which has good infrastructure and high gas prices. Otto Energy has 50% working interest in the onshore Bastiglia-Cento Exploration Permits. Otto's joint venture partner and field Operator is Ascent Resources Plc.
The two adjacent Bastiglia-Cento Exploration Permits are considered highly prospective and have multiple hydrocarbon prospects and leads already identified from previous seismic data. The Joint Venture will be drilling targets between regional highs that all have established hydrocarbon fields found in the 1960/70s.
The first well, Gazzata-1, was drilled during May/June 2009. The well intersected a series of sand/shale sequences below 2,300 metres and was drilled to a total depth of 2,840m. Wireline logs were run and interpretation of the log data did not indicate any commercial gas zones. The well was subsequently plugged and abandoned as a dry hole.
The Joint Venture is currently reviewing data from the well logs with a view to ascertaining next steps for the future exploration programme.
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