Otto Energy Limited announced that it is participating in the Mosquito Bay West and Oyster Bayou South exploration wells located in State waters, in Terrebonne Parish, Louisiana. Otto has agreed to participate in two new exploration wells to be drilled in second quarter of 2022, the Mosquito Bay West and Oyster Bayou South wells located in State waters, in Terrebonne Parish, Louisiana. The wells are both targeting a number of locally productive Miocene sands, with each well having a number of separate objective sands.

In the event of success, production from both wells is set to be processed and transported to market through an existing production facility, based on pre agreed terms and conditions. As a further operational update, the Vick #1 well located in Lavaca County, Texas is being completed in the Yegua interval at approximately 5,450 feet TVD. After Otto was confirmed as the apparent high bidder on the South Timbalier 48 (ST 48) lease at the OCS Lease Sale 257 during November 2021, a US Federal Judge has invalidated the results of the lease sale during January 2022 on the basis of inadequate environmental impact assessment, with an appeal now lodged by the American Petroleum Institute.