Otto Energy Limited · ASX:OEL
Otto Energy — Ottoman Energy — Investor Presentation (May 2005)
47 slides from Otto Energy's investor presentation, May 9, 2005
Slide 1: Presentation – Broker Presentation cover letter
9 May 2005 Manager of Company Announcements Australian Stock Exchange Limited Level 6, 20 Bridge Street SYDNEY NSW 2000 By E-Lodgement PRESENTATION Please find attached a Broker Presentation for information purposes. For and on behalf of the Board Yours faithfully Dr Jaap Poll Managing Director OTTO
Slide 2: Areas of Interest May 2005
itt a AREAS OF INTEREST MAY 2005 ml eI:
Slide 3: Board & Management
To ottoman Board & Management > Rick Crabb Chairman John Zadnik = (Alternate to Crabb) > Jaap Poll MD David Riekie — Director > lan Macliver Director Australian Office 16 Thelma Street, West Perth > Secretariat & Corp. Advice Grange Consulting > Auditors BDO Ankara Office (Edirne) > Ongun Yoldemir O
Slide 4: The dawn of a New Oil Era
Vv Vv Vv Vv Vv Vv Vv ENERGY Th ottoman The dawn of a New Oil Era (Centre for Strategic Studies — Washington) Current world oil demand is 84 million barrels per day (mbpd) and spare capacity is only 1.5 mbpd. He world consumes more oil than it discovers and has been doing so for over yrs. During the
Slide 5: Capital Structure
ENERGY LTo otfoman Capital Structure Shares Options Performance Cash (See notes) Shares Issued Capital 39,675,000 21,325,000 2,500,000 4,000,000 Philippine 7,500,000 3,750,000 - (200,000) Acquisitions Placement 2,500,000 3,837,500 - 500,000 subject to Share Holder approval Total 49,675,000 28,912,50
Slide 6: Corporate Structure
ottoman Corporate Structure To Ottoman Energy Limited Australian Public Company (ASX listed) 100% | 100% | Edirne Energy Ltd Turkish Limited Liability Co. (100% unlisted subsidiary) Ottoman (Philippines) Pty Ltd (100% unlisted Australian subsidiary) 80% 50% 40% 42.5% Thrace Basin NW Palawan || Visay
Slide 7: Edirne Licence
EOIRNE LICENCE
Slide 8: Selection Criteria - why Turkey and the Thrace Basin?
ottoman Selection Criteria - why Turkey and the Thrace Basin? ¥Y a proven hydrocarbon province with an existing energy market v high gas prices (gas prices are double Australian prices) ¥ low Government take (gas royalty 5 — 12.5%, tax 35%) ¥ simple natural gas composition requiring minimal processi
Slide 9: Generalized Stratigraphic Section of Thrace Basin
‘GERERALIGED “STHATIGRAPHIC SECTION OF THRACE BASIN ae Bi RE # , | weLanIvE Bue 2 a iam LUTATIC SURVES SARL Bee gee : mascpinie iad THRACE: BASH) ae Se , 12 4 a mae f3 eee ee ' g — er S inal, lea at ANGER CROE (LEHR S| & a | panisien te BGSEME - LER Oe HE Peete | a eevkaN Fe, a PaLEGrENe LOwEe Eocen
Slide 10: Edirne Licence
Edirne Licence Main Prospect Fairway EME RGY EEG ottoman ARTE EVIE Yellow — Seismic Structures Pink -Amplitude Anomalies Red - Geochem Anomalies 3
Slide 11: Edirne Licence Undrilled Structures with Amplitude Anomalies
ENERGY LTD ottoman -e. ney if | Edirne Licence Undrilled Structures with Amplitude Anomalies
Slide 12: Catalca Licence Geological Map and Structural Cross Section
Catalca Licence Geological Map and Structural Cross Section Anticlinal surface a lead eg MARMARA SEA a GEOLOGICAL MAP & CROSS SECTION OF CATALCA AREA 11
Slide 13: Ortakoy Licence Cross Section
EME RGY EEG ottoman Ortakoy Licence SE — NW Cross Section showing structural style Ortakoy Licence SAROS BAY eT id bea te Feutt one | i
Slide 14: Thrace Basin - Ortakoy Licence
Thrace Basin - Ortakoy Licence PLAY MAP & SEISMIC PROGRAM
Slide 15: Thrace Project Status — Edirne Licence
ottoman Thrace Project Status — Edirne Licence — “on track” > Geological field survey results link outcrop data with drilling targets (Oct / Nov 04) > Reprocessing of seismic has improved target definition and highlights amplitude anomalies (indirect hydrocarbon indicators) - (Dec 04 / April 05) > S
Slide 16: Development of the Calauit Oil Fields and other Philippines Projects
tp. ye Development of the ™ we pine Calauit Oil Fields I 7 | si A and other Exploration and _ || Development Projects in the EGER : Ha Phi lippin es = =~ || (Ottoman / AustralAsian Joint Venture) TT HOM LA NAT HTN TAP a nN All MN NN ES | oe ye . | . May 2005 16
Slide 17: Ottoman's Philippine Representatives
Australfisian Energy timited ENERGY LTo ottoman Ottoman’s Philippine Representatives Rufino Bomasang > 40 years in the Philippine resource sector > Former President of PNOC-EC, former Executive Director of the Office of Energy Affairs, former Undersecretary of Energy, former USAID consultant to the
Slide 18: Exploration and Development Portfolio
ENERGY LTh ottoman Exploration and Development Portfolio Ottoman has build a balanced portfolio of oil & gas projects in the Philippines LOW RISK - GOOD REWARD (Calauit oil fields - OEL 50%) > SC 50 covering the Calauit Oil Fields was awarded to Ottoman and AustralAsian (50/50%) on March 11, 05. > C
Slide 19: Calauit Oil Fields NW Palawan Basin - SC 50
ENERGY LTD ‘ otfoman flustralfisian Energ} y Limited Calauit Oil Fields NW Palawan Basin - SC 50 Location and Technical Details Development Plan + Interim Reservoir Engineering Report By Dr Andrew Wadsley 18
Slide 20: Sedimentary Basins of the Philippines
abhishan: EWERE ottoma Emigy, Sedimentary Basins Of the Philippines Basin NAW. Palawan “<& aie faa Baie i spent pine ieee: Bree bila povtenatat epee, ie We cis a Ein cas LED - New Service Contract straddling the proven oil and gas fairway in the NW Palawan Basin covering the North & South Calauit Oi
Slide 21: Service Contract (SC 50)
ral Enavigy Leviton Yack) Maiampaya Caiauit & South EMERGY LTD ottoman North Fieids Service Contract (SC 50) 5,000 sq km / 80 m water NW Palawan Basin covering | Calauit Oil Discoveries Ottoman 50% Discovered in the 70's & 80's Malampaya 75: - 300 mmbo 2,5-4,5 TCF Gas $00 + meters of water Other Oil
Slide 22: , _ Syn BH Formation
, _ Syn BH Formation 2
Slide 23: Calauit Project Summary
Vv ENERGY LTo ottoman Calauit Project Summary Australfisian Energy timited The fields were discovered in the early 90’s when oil prices were low. An Extended Production Test achieved high flow rates - between 6,500 and 11,000 barrels of fluid per day. Water free production was achieved at 6,500 bopd
Slide 24: Calauit reservoir cartoon showing fractures and horizontal well
shan Enmngy timated — Each frocturn con contrite GT baged alt ‘eetihon trie ail. Original wot cout 2 fractures in well bore, of 8 inochi dismieton «tingly. produced 1,200 bpd oil nel 10,000 bie weber. Cartoon of the Calauit reservoir showing producing fractures and horizontal well location taeda tec
Slide 25: Calauit - Early Production System
EMERGY ETD : ottoman cei _ _ Calauit - Early Production System 24
Slide 26: Results from Independent Reservoir Engineering Report - 1
Australfisian Energy timited | ENERGY LTo otfoman RESULTS FROM INDEPENDENT RESERVOIR ENGINEERING REPORT - 1 Top of structure - 1590 m.ss (from logs) Original OWC - 1720 m.s.s. (from temperature of water influx) Oil column height - 130m. (400 feet) Average fracture porosity - 0.45% Matrix porosity at
Slide 27: Results from Independent Reservoir Engineering Report - 2
Australfisian Energy timited | > Vv Vv ENERGY LTo ottoman During the 1997 extended production test, high flow rates and resulting high drawdown, led to the “coning” of water into the well bore. The high viscosity contrast between the oil (16.0cp) and water (0.53cp) led to high water cuts. If individ
Slide 28: Calauit 1B Production Data - Schlumberger Logs
ENERGY LTD ofteman Say Calauit. 1B ..Production Data - Schlumberger Logs for initial and Final Flow - May & June 1997 pecetes COUPDRUT EAL, LIFE Sie PROD OLTION MAL Yas. ee ae TAT th ANS ROD IOae A HHL SE DEERE WA. eit as nas ee er Tae Sond Neon Pees Saber I u . il im. a Cafaunt - 18 - CPLT - initia
Slide 29: Calauit B - Oil & Water Production over 152 day period
slant Enmngy timated Rate (bbl) EWERGY EEG ottoman Calauit 1B - Oil & Water Production over 152 day period 4g oF @0il OVWoeter Calauit - 1B - 2 Hourly O11 & Water Production - 1997 EPT 20
Slide 30: Approximation of Initial Recoverable Reserves
pproximation o Initial (water free) Recoverable Reserves is indicated onthe | Structure Map. | Each Red squareis | 1.0 S$q.Km and each Red Triangle is 0.5 sq.km) Interim Reservoir Report | indicates that by drilling horizontal | Wells -each 1 sq. Km. may yield 1.5 mmb of water free oil at rates of u
Slide 31: Calauit - Targeted Production
Australfisian Energy timited Vv Vv Vv Vv Vv Vv Vv ENERGY LTo ottoman Ds CALAUIT -TARGETED PRODUCTION Possible Production Rate 7,500 — 15,000 bopd (Andrew Wadsley) Assume Calauit Oil Price US$35/bbl (currently >US$40/bbl) Assume Operating Expenditure (opex) = US$120,000/day (Frigstad) Gross Revenue b
Slide 32: East Visayas Basin Shallow Water (2 Blocks)
Australfisian Energy tmited East Visayas Basin Shallow Water (2 Blocks) Cebu Straits and Leyte Island TransAsia Farmin / Licence Application (Ottoman / AAEL 42.5% ea) 31
Slide 33: East Visayas Basin
Bian: EWMERGY LTB ottoman shan , yi avant pnd ctw) Sedimentary ; Basins Of the Philippines — EAST VISAYAS BASIN Two blocks. containing prospects with amplitude NAW: Palawan Y= anomalies and an undeveloped gas field. ithe Wea Tedd Vm oe Trans-Asia Farmin / New Licence Application Ottoman / AustralAsi
Slide 34: Proposed New SC Contract Area
iH ENERGY LTD bal Legal | asim Pee oat A Niet ia, Waliasesig Naw & age a haves! ¢ Protest Proposed Mew GC Contract Area Area 445,565 ba, _ vis Ewa Beuth Cebit Gisatt Seieeic PRogiam Total « Fh koe.
Slide 35: GSEC - Farmin Block - Cebu Straits
GSEC 93 - Farmin Block - Cebu Straits on o 2 al Ewesgiy Unsltad Key Seismic lines over the Bahay, Argao, Cabilao & Tagbilaran Prospects Cebu Straits Tagbilaran Ottoman/AAEL |) Prospect ok 40% ea 34
Slide 36: Line VA-137 - Argao Prospect
Hi ENERGY LTD fustratisias, Line VA-137 - Argao Prospect - Farmin Block - Cebu Straits 33
Slide 37: Regional Line between Argao & Cabilao prospects
EMERGY LED 2man swerve egional Line between Argao & Cabilao prospects A Cabilao-1 ee ee ae eo mm ae oo | pata ope na he soe sa oe be, 2 7 2.0 ne iy 36
Slide 38: Cabilao Prospect Cebu Straits
EMERGY ETD ottoman Emerg Linvlbed Cabilao Prospect Cebu Straits Top reef 500 ft deep Similarity between Cabilao Prospect and E8 Gas Field Offshore Sarawak =I Shallow Reef Shell E8 Gas Field. Offshore Sarawak 2.5 TCF 3?
Slide 39: Line CB 129 - Tagbilaran Prospect
EMERGY LTE offoman Line CB 129:- Tagbilaran Prospect - Farmin Block - Cebu Straits : Cs ul Palabadests : Ces ele Ade slant Enmngy timated 38
Slide 40: Line VA-128 - Bahay Prospect
H EWERGY LTB ih cores Line VA-128 - Bahay Prospect - Farmin Block Cebu Straits 39
Slide 41: SW Palawan Basin Ultra Deep Water
SW Palawan Basin Ultra Deep Water Trans-Asia Farmin / Application (Ottoman / AEL 42.5% ea) 40
Slide 42: SW Palawan Basin Ultra Deep Water
ite Enwigy Hevdted ERERGY LTS ottoman Pega RAK. “a B SW PALAWAN BASIN ULTRA DEEP WATER Farmin / Application OTTOMAN 42.5% 2 Blocks — 9150 sq km 41
Slide 43: Ultra Deep Water Block SW Palawan
Australfisian EMERG Y LTH otfoman Energy timited | Vv ULTRA DEEP WATER BLOCK SW PALAWAN Ottoman / Australasian (42.5% ea) are participants in a Joint Farmin / Licence Application on a large Ultra Deep Water Block. Several prospects including a super giant reef in water depths of up to 8,000 feet hav
Slide 44: Marantao Reef Prospect
EME RGY LF ottoman autrelisian Marantao Reef Prospect - et BGR84-128 ie SE» saps ‘uietieoua eps, Higgs TaD ee Ii ia 43
Slide 45: Marantao Prospect Depth Map
Enmngy timated Marantao Prospect Seismic Program 400 km Depth Map ~-C.1. =100 meters easoog 640000 —«SaBO00 «80000 858000 AA
Slide 46: Joint Farmin / Application Ultra Deep Water
EMERG Y LTD ottoman boonies Joint Farmin / Application Cy ie Ultra Deep Water Malampaya _ Murphy’s cy - | Ultra Deep Water Discoveries Offshore Sabah 45
Slide 47: 2005 - Time line of Ottoman projects
EMRERGY LTD otfoman fustrafsian 2005 - Time line of Ottoman projects Turkey > Edirne/Catalca & Ortakoy seismic surveys May/June 05 > First well Aug / Sep 05 >Contingent step-out well spud Nov / Dec 05 Philippines > Award Calauit 11 March 05 > Award Visayas SC blocks May/June 05 > Award Ultra Deep Wa