- Otto Energy (OEL) reports an “excellent” net gas pay result from its Point Au Fer LLC 1 well at the Mosquito Bay West exploration prospect in Terrebonne Parish, Louisiana
- The well encounters a proved net gas pay of 111 feet true vertical thickness (TVT) across five separate Miocene intervals, plus another 10 feet TVT potential pay in one other sand considered probable or possible
- Otto says this result represents a significantly higher net pay count than the company was carrying in its mid-case on a pre-drill basis
- The company says it will begin facility and pipeline construction soon, with first production expected in the third quarter of 2022
- Otto Energy shares are trading grey at 1.3 cents per share at 12:45 pm AEST
Otto Energy (OEL) has reported an “excellent” net gas pay result from its Point Au Fer LLC 1 well at the Mosquito Bay West exploration prospect in Terrebonne Parish, Louisiana.
After successfully drilling the well to its target measured depth of almost 15,000 feet, Otto encountered a proved net gas pay of 111 feet true vertical thickness (TVT) across five separate Miocene intervals, plus another 10 feet TVT potential pay in one other sand that is considered probable or possible.
Otto said this result represented a significantly higher net pay count than the company was carrying in its mid-case on a pre-drill basis.
Executive Chairman Mike Utsler said this was a “fantastic result” in the Mosquito Bay West area, and the company was looking forward to well completion and facility and pipeline construction.
“The development of Mosquito Bay West is expected to deliver a meaningfully positive impact to Otto free cash flow from H2 CY2022. It also provides a robust technical and commercial proof point for successful application of Otto’s capital investment
framework to potential new opportunities,” he said.
“Following completion of the Mosquito Bay West well, the drill rig will move to spud the
geologically dependent Oyster Bayou South prospect, which also possesses multiple pay objectives and access to existing infrastructure to allow for rapid tie-in to markets.”
The company added that it would release updated resource estimates in due course.
Otto will kick off facility and pipeline construction soon, with first production expected in the third quarter of 2022.
This is Otto’s second exploration success in the last six months after its Eaves discovery, with the spudding of the Oyster Bayou South exploration well to commence shortly.
Otto Energy shares were trading grey at 1.3 cents per share at 12:45 pm AEST.