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Otto Energy receives US$21.3M from BHP

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Otto Energy (ASX:OEL) has received US$21.3 million from BHP Billiton (ASX:BHP) in relation to drilling costs for the recent Hawkeye-1 exploration well in the Palawan Basin offshore Philippines.

This represents the bulk of BHP’s contribution of up to US$24.5 million with the final payment to be received this quarter once total well cost is confirmed.

Hawkeye-1 intersected hydrocarbons between 2,710 metres and 2,737 metres in reservoir of variable quality.

Cuttings provided indications of fluorescence, usually an indicator of liquid hydrocarbons.

Separately, the company made a final payment of US$7 million to Great Bear Petroleum to earn an 8% and 10.8% working interest in two areas of Alaskan North Slope acreage.

Otto will participate in a future drilling program with a total capped exposure of US$6 million in up to three wells.

The company currently has over US$30 million in available funds to pursue its growth strategy, or cash backing of about A$0.04 per share.

This is well above OEL’s last traded price of $0.029.

 

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Quick facts: Otto Energy Ltd

Price: 0.0245 AUD

ASX:OEL
Market: ASX
Market Cap: $59.05 m
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