Otis Energy (OTE)

Shares / Stock Code

OTE

Stock Exchange / Sharemarket

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Otis Energy Limited (OTE, Future Corporation Australia Limited) is an Australian Oil and Gas company involved in the development and production of oil and gas in the United States with a particular focus on the Gulf States of Texas, Mississippi and Louisiana. Otis currently holds interests in four projects including the Avalanche 3D project, Catahoula Lake and Atocha Project all in Louisiana along with the San Jac 3D project located in Monroe and San Jacinto Counties Texas. Otis Energy’s Dallas offices are staffed by two Geologists, one Reservoir Engineer and two Landmen allowing Otis generate exploration and production projects internally.

Avalanche Project - 10% Working Interest (South Central Louisiana)
Avalanche is located in South Central Louisiana, covers close to 24,000 acres and is approximately 75% covered by a proprietary 3D seismic survey. Mapping of independent seismic events has led to the delineation of over 22 separate prospects across the 3D Shoot. The project has analogous production along trend, gas shows in the objective sand and tremendous upside reserve potential of up to 126 Million Barrels of Oil (MMBO) and 379 Billion Cubic feet of Gas (BCFG). The first well is set to spud in August 2011 to test a potential four potential sands with a reserve potential of between 3.3MMBO to 41MMBO and 9.9BCFG to 123 BCFG.

Catahoula Lake - 25 to 50% Working Interest (La Salle Parish, Louisiana)
The Catahoula Lake project is located in LaSalle, Rapides, and Grant parishes, Louisiana and is targeting multiple “stacked” oil zones throughout the Middle-Wilcox formation at depths ranging from 4,500 to 5,500 feet. Wells drilled in the Middle-Wilcox exhibit long production lives with low decline rates after the initial flush oil is produced and relatively steady production is established. Ultimate oil recoveries are expected to range from 50,000 to 200,000 barrels for each successful well drilled from land locations and in excess of 250,000 barrels for each successful well drilled from lake locations.

Otis Energy Ltd and Pryme Energy Ltd each own 50% of Pryme Lake Exploration (‘PLX’) which is a participant in the Catahoula Lake joint venture (Barge Rig, Barges and Boats and associated equipment) and also owns, in its own right, a 100% Working Interest in wells, production facilities and acreage located within Catahoula Lake and its surrounds.

San Jacinto 3D Project - 9.5 to 10% Working Interest (San Jacinto & Montgomery Counties , Texas)
The San Jacinto (San-Jac) project covers approx 60 square miles of proprietary 3D seismic and leased acreage. Two wells were drilled in early 2011 and both were plugged and abandoned after no commercial discovery of hydrocarbons. At present both the Operator, Drill Partners and Otis Energy Inc are reviewing data gained from the first two wells to gain greater confidence in the existing prospects and possibly generate new prospects through further technical work.

Atocha Project - 50% Working Interest
The Atocha Project, located in East Baton Rouge and East Feliciana Parishes in Louisiana, covers 3,424 contiguous acres within the up-dip fairway of the Tuscaloosa Trend. The Tuscaloosa Trend was discovered in 1975 by Chevron. It has produced over 2.8 Trillion Cubic Feet (TCF) of natural gas and 120 million barrels of condensate over the past 32 years. In late 2009, early 2010 Otis Energy along with Pryme Energy re-entered a well drilled by Shell in 1979-80 that was never completed. The aim was to test the well in a zone that showed on the Shell Logs to be Hydrocarbon bearing. The zone was re-logged by Otis and Pryme and was perforated and tested in the upper 24 feet of the sand.

While the well produced some gas the water quantities were too large to make it a viable well. It was decided by the WI parties to rework available seismic over the prospect and attempt to locate an updip location to drill a second well. The quality of old 2D seismic available was poor and it was decided by the parties to seek to find a larger company to attempt to drill the proposed $8-10 million USD second well. The company is currently in negotiations with potential interested parties in the Atocha project.

Previous Company Name: Future Corporation Australia Ltd