ASX ANNOUNCEMENT

19 October 2020

GREEN CANYON 21 "BULLEIT" FIELD COMMENCES PRODUCTION

  • First oil and associated gas production from the Green Canyon 21 "Bulleit" Field commenced on 15 October 2020.
  • Production of oil and gas from the field is being slowly increased during the initial 1-2 week period as part of a planned ramp up strategy
  • GC 21 oil and gas flows via a subsea tieback to the GC 18 platform where it is processed and delivery into regional oil and gas sales pipelines
  • Product sales are secured via long term production handling, transportation and sales arrangements
  • Additional proven reserves exist in the discovered shallower DTR-10 sand which can be produced from the existing well bore

Otto Energy ("Otto") (ASX: OEL) is pleased to provide a market update on the status of production for the Green Canyon 21 (GC 21) "Bulleit" field, operated by Talos Energy, Inc ("Talos") (NYSE: TALO). The well produced first oil at approximately 0930 hrs US Central Time on October 15th 2020 from the MP reservoir interval and delivered first sales to the pipeline that afternoon.

Talos have a planned well production ramp up strategy where production will slowly be increased in 1000 bopd increments until the well reaches a steady state production rate. Otto will update the market when steady state production levels have been achieved.

During 2019 the GC 21 "Bulleit" well intersected the following high quality oil-bearing reservoir intervals:

  • DTR-10where a net 140 feet of TVD oil pay was encountered; and
  • MP where a net 110 feet of TVD oil pay was encountered. This reservoir is expected to perform consistent with analogue wells in the GC18 field.

Otto Energy has a 16.67% Working Interest and 13.33% Net Revenue Interest in the GC 21 lease and project.

The project has been developed via a 10 mile subsea tieback to the Talos Operated GC 18 Whistler platform where production is being processed and then delivered into regional oil and gas sales pipelines.

Otto's product sales from GC 21 are secured via long term production handling, transportation and sales arrangements.

Otto will continue to update the market on the production performance of the GC-21 field once steady state production levels have been reached as expected over the next several weeks.

Otto's CEO and Managing Director, Mike Utsler, commented: "The development and startup of the Bulleit Field is a significant milestone for Otto Energy and its shareholders. The field and its production form an important component of our robust base business in both the offshore and onshore Gulf of Mexico, where we now produce oil and gas from three excellent

Otto Energy Limited ASX Code: OEL ABN: 56 107 555 046 info@ottoenergy.com T: +61 8 6467 8800

Australian Office: 32 Delhi Street, West Perth WA 6005 Australia PO Box 1414, West Perth, WA 6872 Australia

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Houston Office: Suite #1080, Two Allen Center, 1200 Smith Street, Houston, Texas 77002 T: +1 713-893-8894

fields.. We look forward to updating the market further as the well ramps up production to its expected steady state levels."

This announcement is approved for release by the Company's Board of Directors.

Contact:

Investor Relations:

Mike Utsler

Mark Lindh (Adelaide Equity)

Managing Director & CEO

info@ottoenergy.com

+61 414 551 361

Otto Energy Limited ASX Code: OEL ABN: 56 107 555 046 info@ottoenergy.com T: +61 8 6467 8800

Australian Office: 32 Delhi Street, West Perth WA 6005 Australia PO Box 1414, West Perth, WA 6872 Australia

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Houston Office: Suite #1080, Two Allen Center, 1200 Smith Street, Houston, Texas 77002 T: +1 713-893-8894

Bulleit, Green Canyon 21 Key Details

Working Interest

Net Revenue Interest

Partners

Talos Energy (operator)

50.00%

40%

EnVen Energy Ventures, LLC

33.33%

26.67%

Otto Energy

16.67%

13.33%

Geological

Pliocene age MP sand analogous to Green Canyon 18 field, which has produced

Setting

approximately 39 MMboe to date.

Development

Approximately 10 mile/16 km subsea tieback to the Talos-operated GC 18A facility

with connections into regional oil and gas sales pipelines.

Concept

~16 km tie-back

GC21 - Bulleit Prospect

Talos GC18A

Platform

GC21 Development scenario map

Otto Energy Limited ASX Code: OEL ABN: 56 107 555 046 info@ottoenergy.com T: +61 8 6467 8800

Australian Office: 32 Delhi Street, West Perth WA 6005 Australia PO Box 1414, West Perth, WA 6872 Australia

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Houston Office: Suite #1080, Two Allen Center, 1200 Smith Street, Houston, Texas 77002 T: +1 713-893-8894

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Otto Energy Limited published this content on 19 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 October 2020 15:39:01 UTC