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Saturday, 30 August, 2008, 12:00 GMT | more prices >>

Otto steps in to Argentina block



By Upstream staff 

Australia’s Otto Energy is to explore in Argentina’s onshore Cuyana basin after being awarded a licence to the 7694 square kilometre Santa Cruz Block in Mendoza province.

Otto said it would earn a 32.48% interest in the permit under a farm-in deal with Canadian-listed operator Oromin Explorations, which holds the remaining 67.52% stake.

Under the terms of the deal, Otto will spend $1.4 million on funding two wells on the permit. It has an option to increase its stake in the venture to 41.24% for a further $900,000 in exploration investment.

Otto said it would initially target a shallow dome structure on the permit covering about 220 square kilometres.

“We are extremely pleased to confirm the Santa Rosa licence has now been awarded. This licence is located in an established, prolific hydrocarbon basin and provides considerable upside for Otto's shareholders should we make a discovery," said Otto chief executive Alex Parks.


Monday, 05 May, 2008, 02:35 GMT  | last updated: Monday, 05 May, 2008, 08:17 GMT

Two to tango: Otto will explore the Santa Cruz block with partner Oromin Explorations
 

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