Otto Energy Limited : Galoc Phase II Drilling Update Number 1

12 June 2013

Manager of Company Announcements

ASX Limited

Level 6, 20 Bridge Street

SYDNEY NSW 2000

• Weekly drilling update for Galoc-5H and 6H

Otto Energy Limited ("Otto") (ASX:OEL), as operator of the producing Galoc oilfield joint venture offshore the Philippines, provides the following update on the Galoc-5H and Galoc-6H drilling campaign in SC14C, part of the Galoc Phase II development approved in 2012.

Progress

During the period from 1300 hours (AWST) on 4 June 2013 to
0600 hours (AWST) on 12 June 2013, the 36" (914mm) hole was drilled to 400 metres on G-6H and the 26" (660mm) hole was drilled to 400 metres on G-5H.

Forward Plan

The forward plan is to set the 30" (762mm) conductor on G-6H and open the G-5H hole to 36" (914mm) and set the 30" conductor also prior to drilling the 17½" (444 mm) hole to 950 metres on both wells.

• ASX-listed oil and gas company with a strategy to grow its integrated oil and gas business across exploration, development and production

• Focused on South East Asia and East

Africa

• Operator of the producing Galoc oil field in the Philippines, which provides cashflow

• Opportunity rich with substantial exploration prospects and leads COMPANY OFFICERS

Rick Crabb Chairman

Ian Macliver Director Rufino Bomasang Director John Jetter Director Ian Boserio Director Gregor McNab CEO

Matthew Allen CFO/Coy Secretary

Manila Office 32nd Floor Philamlife Tower, 8767 Paseo de Roxas, Makati City 1226, Philippines T: +63 2 773 2700 F: +63 2 773 2801 info@ottoenergy.com ASX Code: OEL ABN: 56 107 555 046

Figure 1: MODU Ocean Patriot being moored on field, taken from FPSO Rubicon Intrepid

--Ends--

Contact: Matthew Allen

Chief Financial Officer

+61 8 6467 8800 info@ottoenergy.com

Media:

Dudley White

MAGNUS Investor Relations + Corporate Communication

+61 2 8999 1010 dwhite@magnus.net.au

Manila Office 32nd Floor Philamlife Tower, 8767 Paseo de Roxas, Makati City 1226, Philippines T: +63 2 773 2700 F: +63 2 773 2801 info@ottoenergy.com ASX Code: OEL ABN: 56 107 555 046

Location and Proposed Depth

The Galoc field is located in Service Contract SC14C (Galoc Sub Block) in 290m of water approximately 65km North West of Palawan Island and 350km south of Manila in the Republic of the Philippines. The Galoc-5H and Galoc-6H development wells are being drilled within the existing producing field that has delivered over 10
MMbbls of production since the field was commissioned in 2008.
The wells are being batch drilled in 311 metres of water. It is planned that the Galoc-5H and Galoc-6H development wells will be drilled to a total vertical depth of 2,190 with approximately 2,000 of horizontal completion. Drilling is expected to take approximately 115 days including the flowing of the wells for clean-up.
After drilling of both Galoc-5H and Galoc-6H is completed, the DOF operated Skandia Hercules construction vessel will be used to install the subsea equipment and complete the hook-up of both wells to the FPSO Rubicon Intrepid.

First oil from the Phase II wells is expected during Q4 2013.

Manila Office 32nd Floor Philamlife Tower, 8767 Paseo de Roxas, Makati City 1226, Philippines T: +63 2 773 2700 F: +63 2 773 2801 info@ottoenergy.com ASX Code: OEL ABN: 56 107 555 046

APPENDIX A: SUMMARY

Note: Depth is measured in metres below the rig rotary table or drilling floor

Joint Venture Partners:

Manila Office 32nd Floor Philamlife Tower, 8767 Paseo de Roxas, Makati City 1226, Philippines T: +63 2 773 2700 F: +63 2 773 2801 info@ottoenergy.com ASX Code: OEL ABN: 56 107 555 046

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