Otto Energy Limited(ASX:OEL)("Otto"or"The Company")notes the positive exploration results from its Pangani licence in Tanzania reported in the attached ASX Announcement from joint venture partner Swala Energy Limited(ASX:SWE).
Otto holds a 50%interest in the onshore Pangani and KilosaKilombero Production Sharing Agreements(PSAs)under an agreement announced in early 2012.Swala has an indirect 32.5%interest in both PSAs.
Otto Energy Chief Executive Officer Gregor McNab said:"These results reported by Swala provide further encouragement for the prospectivity in our existing East African assets.It is particularly pleasing to report these initial findings after our recent confirmation of the Kito prospect in the Kilosa-Kilombero PSA.This provides further support our decision to move into the exciting onshore East Africa region,which remains a core area of focus for Otto."