Ownership: 25.00% Status: ExplorationLocation: Offshore Gulf of MexicoArea: 20.23 km2
Otto has secured a farm-in to the South Timbalier 224 licence in the Gulf of Mexico shelf area. Located in 170 feet/52 metres of water, the block contains a large amplitude supported, high condensate to gas ratio (CGR) gas condensate prospect delineated by 3D seismic.
Several existing production platforms fall within tie-back distance of the proposed well making development of any discovered hydrocarbons both quick and cost effective.
The operations are being conducted by respected and experienced operator, W&T Offshore Inc.
Under the terms of the participation agreement, Otto will be required to fund 25% of the initial test well in the ST 224 lease (up to casing point) to earn a 25% working interest in the ST 224 lease. The financial commitment is currently estimated at US$2.7m (Otto share of dry hole costs) including funds to evaluate the well using wireline techniques and in a failure case to P&A the location. Otto also paid US$56,250 in back costs.
Operator has commenced the well permitting process and secured the Enterprise Offshore 264 jack-up drilling rig to undertake the drilling operations in Q4 2017.