Otto completes acquisition of Galoc oil field

Australian based oil & gas company Otto Energy completes the acquisition of a 31.38% shareholding in Galoc Production Company W.L.L. (”GPC”) which holds a 58.29% working interest in the Galoc Oil Field.

Otto has acquired two single asset companies; Team Oil Limited (”Team”) and Cape Energy Philippines SA (”Cape”), who each owned a 15.69% interest in GPC.

Otto has thereby acquired an 18.28% indirect interest in the Galoc Oil Field development project in the Philippines. GPC is the operator of the Galoc Oil Field development project in SC14c, offshore Philippines. There are now two shareholders in GPC, Otto and a subsidiary of the Vitol Group (”Vitol”) owning the remaining stake (68.62%).

The revenues from Galoc’s oil production will fund Otto’s exciting exploration programs, which could deliver significant oil and gas discoveries in Otto’s worldwide acreage in the second half of 2008 and 2009.