Otto Energy Limited (ASX: OEL) (Otto or the Company) is pleased to announce that the Company has executed a Facility Agreement Amendment Letter with Macquarie Bank Limited (Macquarie) to adjust certain terms of its three-year senior secured term debt facility initially announced on 4 November 2019 ( Credit Facility).
The amendment has been developed on the basis of the recognition that the Bulleit well at Green Canyon 21 (GC 21) has experienced lower than expected performance since beginning production in October 2020. Technical uncertainties surrounding the nature of this anomalous well performance have been identified and extensive technical and analytical studies are ongoing by the GC 21 partnership to develop the mitigation plan going forward.
Given this uncertainty, Otto and Macquarie have worked together to develop this amendment to:
Establish the timing for a GC 21 mitigation plan to be developed and implemented (31 July 2021);
Extend the availability of Tranche A2, the US$10 million committed funding available on successful exploration or commencement of commercial production at GC 21 which expired on 31 December 2020, until 31 March 2022; and
Establish a minimum quarterly average production requirement of 1,900 BOEPD until the GC 21 mitigation is completed (Otto Net WI volume).
Otto Executive Chairman, Mr Michael Utsler, commented: 'We have worked closely with Macquarie and truly appreciate their ongoing support in developing these changes to the existing facility. These changes allow Otto to maintain a potential for accessing additional development funding via Tranche A2 into 2022 while enabling the GC 21 partnership to complete its ongoing assessment and planning for potential repair/recompletion of the GC 21 well.'
Contact:
Michael Utsler
Executive Chairman
+61 8 6467 8800
info@ottoenergy.com
Investors:
Mark Lindh
Adelaide Equity Partners
+61(0)414 551 361
Media:
Michael Vaughan
Fivemark Partners
+61(0)422 602 720
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OTTO ENERGY LIMITED 
