South Timbalier 48
Otto has now been awarded the South Timbalier 48 (ST 48) lease in the Gulf of Mexico shelf. This follows the Company’s bid on ST 48 as part of Central Lease Sale 257 during November 2021. The ST 48 lease will have a 5-year primary term and 12.5% royalty rate. The ST 48 lease contains the Osprey prospect, which was generated by Otto using its in-house seismic library. The Osprey prospect has a gross Best Estimate Prospective Resource volume of 4.1 MMbbl and 18.6 Bcf. Abundant platform and pipeline infrastructure exist around the ST 48 lease.
Otto holds approximately 14.3 million shares in Pantheon Resources Plc (LSE:PANR), which is the operator of the recently formed Talitha Unit in Alaska. The Talitha Unit is located on the North Slope where Pantheon holds 100% working interest in its various projects. All projects are located adjacent to the major Trans Alaska Pipeline System (TAPS) and the Dalton Highway. Pantheon recently completed drilling of the Talitha #A well to targeted depth of approximately 3,200 metres. The well has now been logged and testing of four major oil-bearing zones has commenced.
Otto also retains a 0.5% of 8/8ths ORRI over any future production from the Talitha Unit.