OTTO ENERGYASX Small to Mid Caps Conference

19th MARCH 2009 LONDON

HIGHLIGHTS

International oil producer with attractive exploration and development portfolio across 4 countries

Current net working interest from Galoc production around 2,600 bopd

Galoc gross mid‐case reserves around 20 MMbbls 

Current average OPEX around US$16 per barrel

Currently finalising JOA documentation with BHP Billiton to fund deepwater exploration in SC55,  Philippines

Busy CY09 exploration and development activity schedule

Exploration drilling in Argentina, Italy

Gas field development in Turkey

Equity raising A$35 million via 15% placement and 3 for 4 entitlement, both at 7 cents / share

Funds for exploration and development projects, reduce corporate debt, working capital

Two major shareholders contributing $14 million to Equity Raising with long term investment strategy

OTTO HAS A BALANCED PORTFOLIO

Philippines – Oil (and gas) focus

Production and reserves  at Galoc

Calauit oil appraisal project

SC55 deepwater exploration – HoA  in place for farm out to BHPB

Europe – Gas focus

All lower risk and onshore

Turkey gas development project

High impact Italian exploration

Argentina – Oil focus

Lower cost onshore exploration

VALUATIONS ARE BASED ON SUCCESSFUL EXPLORATION

PHILIPPINES

Otto holds 18.28% indirect interest in offshore Galoc Oil Field

Via a 31% shareholding in the Operator, Galoc Production  Company, which has a 58% interest

Vitol is the other shareholder in the Galoc Production Company

Otto estimates Gross mid‐case field reserves of the order of  20 MMbbls

First oil 9th October 2008 

Production recommenced 25 February 2009 following a M&RS related shut down in Dec 2008 

Currently producing at approximately 15,000 bopd gross

Field has produced over 1 million bbls gross

There are a number of incremental development options

NE flank of field

Attic volumes

Galoc North exploration

GALOC OIL FIELD PRODUCTION (SC14C)

Shut down Dec 2008 due to weather related issues  and need to reattach Riser to Tether at LRTI  with delays in recommencing production due to:

Time required to mobilise divers, parts and equipment over the Christmas and New Year period

Improvements to Mooring and Riser System (M&RS)

Installation of stern mooring arrangement, the Hold Back Mooring System (HBMS)

No FPSO operating costs charged during shut down

Minor costs incurred for upgrades to M&RS

Future benefits from infrastructure and operational improvements expected:Decreased operating expenditure through fuel cost savings

Anticipated increased uptime

Simpler and more controlled disconnections (during typhoon season)

GALOC OPERATIONAL ISSUES

GALOC MOORINGS AND RISER

FPSO

Water Depth 290m

Horizontal Wells

FPSO Mooring Tether

Flow line & Umbilical Riser Trees

Riser Base

Mooring Base

Jumpers

Additional buoyancy added to Upper RTI’

New Hold Back Mooring

System

Lower RTI

CASHFLOW TO FUND PROJECT FACILITIES

Assumptions 2HFY09

Gross production (mmbbls)

(mbopd – average daily)1.3 – 1.5

10.8 – 12.5*Average opex (US$/bbl) ~16

Realised oil price (US$/bbl) 40 50 60

Net  Otto share of GPC Cashflow (US$mm) ~6 ~9 ~12

Otto’s Galoc operations funded by non recourse net project debt of US$8.8 million at 28 February 2009

Bullet payment of US$ 1.55 million to be paid by end of March 2009

Remaining GPC debt targeted to be repaid by 2H09, dependent upon

Realised oil price

Performance of two wells and rate of decline

Facility uptime and typhoon interruption* Over 4 months. No production 1st Jan – 24th Feb 09

Galoc Development Options

Otto to farm down from 85% to 25% with BHPB to operate (earning 60%) – Conditional HOA  executed

JV partner TransAsia hold 15% interest

Water depths of 300 – 2,000mLarge permit area of 9,000km2 

Currently finalising JOA documentation with BHPB to fund deep‐water explorationBHPB drill and cover costs of two deep‐water wells 

BHPB pay cost of multi‐prospect 3D seismic survey

BHPB to reimburse Otto back costs. 

Otto estimates documentation of farm in expected  to be completed Q2 2009 with 3D seismic to follow  in 2H 2009 and drilling in 2010.

SC55 EXPLORATION

1,000km  DEEP W

ATER OIL & GAS TREND

Shell/Conoco Phillips oil discovery

SC 55Deep Water

Licence

SC 55Deep Water

Licence

SC55 PROSPECTS AND LEADS

ADDITIONAL PHILLIPINES APPRAISAL/EXPLORATION

SC50 Appraisal of Calauit Oil Discoveries (85%)Otto OperatorUp to 75MMbbls STOIIP Seeking farm‐in partner

SC51 Exploration (80%) Otto Operator11 prospects and leads on 2D & 3D recorded in  2007Combined potential  in this offshore block is   500MMbbls STOIIP (mid case)Seeking farm‐in partner

SC69 Exploration (70%)Otto OperatorMinimal committed work program seismic with  1 well commitment in last year of 7 year term

EUROPE

Otto 35% Working Interest

Incremental Petroleum  /TransAtlantic (Operator ‐ 55%)

Gross discovered volumes of between  10‐20 Bcf

6 gas discoveries  100% success rate  + numerous prospects on 3D

Turkish gas prices remain robust   ~US$12/Mscf

Gas Sales Agreement under negotiation

Development underway with first gas  expected  late 2009/early 2010

Gross CAPEX less than US$10 million  expected to be  paid for by gas buyer

TURKEY: EDIRNE DEVELOPMENT

Otto farming in for 50% WI

1 firm + 1 contingent well @  US$5million/well (dry hole)

Operated by AIM‐listed Ascent  Resources Plc

Gazzata 1 targeting up to 350 Bcf gas

Strong Direct Hydrocarbon Indicators  (DHI) on seismic ‐ on trend with producing gas fieldsProven producing province ‐ Po Valley has produced 15.6 Tcf gas

Existing nearby infrastructure and robust   regional gas prices

Drilling first exploration well, Gazzata‐1 Q2  2009

Significant follow‐up potential with targets  50 to 500 Bcf

ITALY: PO VALLEY EXPLORATION

Gazzata‐1

Rubiera

Gazzata‐1

Rubiera

Gas Field

Gas FieldGas FieldGas FieldsGas FieldGas FieldGas Fields

Gas Field

Oil Field

ARGENTINA

SANTA ROSA EXPLORATION

EXISTING OIL

FIELDS

SANTA-ROSA OIL PROSPECT

COMBINED PORTFOLIO

NON OPERATED, ONSHORE OPERATED, OFFSHORETurkey, Italy, Argentina Philippines

PROJECT PIPELINE

SC55 Oil

SC51 Oil

SC69 Oil

Italy Gas

Argentina Oil

Galoc Phase 1

Exploration Development & Appraisal Production

Galoc Phase 2

SC50 Calauit

Turkey Gas

Turkey Gas

OFFSHOREOIL, S.E ASIA

ONSHORE GAS, EUROPE

FUTURE POTENTIAL

Phase 1 Galoc forecast

Discovered undeveloped Galoc Phase 2, Calauit,  Turkey 

Potential profile  assuming just one  exploration success  across either Philippines,  Italy  or Argentina

Ultra deep water  (SC55)  potential off the chart. 

Permits also contain  multiple prospects with  follow up potential.

+ DEEP WATER & NEAR DISCOVERY FOLLOW UP

POTENTIAL

RICK CRABB CHAIRMAN

(NON - EXECUTIVE)B JURIS (HONS) LLB MBA

JAAP POLL DIRECTOR

(NON - EXECUTIVE)PHD PHILOSOPHY AND

GEOLOGY

RUFINO BOMASANG

DIRECTOR (NON - EXECUTIVE)

NORASIAN CHAIRMAN

IAN MACLIVER DIRECTOR

(NON - EXECUTIVE)

JOHN JETTERDIRECTOR

(NON – EXECUTIVE)

Mr Rick Crabb holds a degree in law and business administration from UWA. He practised as a solicitor from 1980 to 2004, specialising in resources. He is now a full time Director, also being Chairman of Paladin Resources and other resource companies.

Dr Jaap Poll is the founder of the company with a distinguished 40 year career in petroleum management worldwide. He has extensive work experience in the Middle East, Europe, Central America, Africa, Asia and Australia.

Mr Rufino Bomasang, originally a mining engineer, has held numerous senior positions in Philippines industry and DoE. Including being former head of the Philippines DoE and former President of PNOC-EC.

Mr Ian Macliver is Managing Director of Grange Consulting Group Pty Ltd, which provides specialist corporate advisory services. He has many years experience as a senior executive and director.

Mr Jetter is a solicitor and barrister, a member of the Australia Law Society and has extensive international finance and M&A experience, including being the former CEO and head of investment banking in JP Morgan in Germany.

BOARD OF DIRECTORS

Distinguished board with ‘big company’ experience (Paladin, PNOC, Shell, Woodside, JP Morgan)

With the vision and capability to oversee the growth of Otto

INDICATIVE WORK PROGRAM

Activity Date

Galoc back on production 25 Feb 2009

Complete BHPB SC55 documentation Q2 2009

Sign Turkey Gas Sales Agreement Q2 2009

Drilling of  350 Bcf target (Gazzata‐1 well) in Italy Q2 2009

Drilling of up to 950 MMbbl target in Argentina Q2 2009

Farm‐out of Philippines projects (SC50 and 51) 2H 2009

Conduct 3D seismic in SC55 in Philippines 2H 2009

Commence gas production in Turkey Q4 2009/Q1 2010

Drilling in Philippines SC55 2010‐2012

Galoc Phase 2 and Calauit oil field appraisal/development 2010/2011

DETAILS OF CAPITAL RAISING

Placement

S.708 Placement under Company’s 15% capacity

73.9 million shares at 7 cents per share

Gross proceeds of A$5.2 million

All placees firm on entitlement

Entitlement Issue

3 for 4 share entitlement at 7 cents per share

Gross proceeds of A$29.7 million

Fully underwritten by Euroz

Equity raising of A$35 million via Placement and Entitlement Issue

Otto’s two major shareholders and Directors remain strong supporters

Participating in Entitlement Issue and Sub‐Underwriting to extent of A$14 million 

Directors also providing a short term unsecured loan facility of A$1.53M and participating in  the Entitlement Issue to approximately A$1 million

USE OF FUNDS

A$ Million* 

Repay Shareholder & Director Loans 12.9

Italy Drilling  8.5

Argentina Drilling   2.5

Turkey Development 1.8

Working Capital / G&A / Contingency / Costs 9.3

Total 35.0

Assumes shareholder and Director loan facilities are fully drawn in order to pay the US$1.55  million March 31 2009 bullet payment on the Galoc project non recourse debt facility

* Assuming USD exchange rate of 0.65

TRANSACTION TIMETABLE

INDICATIVE TIMETABLE

Trading Halt Pre‐market, Tuesday, 17 March 2009

Firm bids to Euroz by 7pm (AEDT) Wednesday, 18 March 2009

Allocations advised 10am (AEDT) Thursday, 19 March 2009

Return of signed Confirmation and Settlement Advice by 2pm (AEDT) Thursday, 19 March 2009

ASX Announcement and return to trade Thursday, 19 March 2009

Ex entitlement date Tuesday, 24 March 2009

Expected DvP Settlement of Placement Shares Friday, 27 March 2009

Entitlement Issue Record Date Monday, 30 March 2009

Entitlement Issue Opens Thursday, 2 April 2009

Entitlement Issue Closes Monday, 20 April 2009

Shortfall Notice to Sub‐Underwriters Thursday, 23 April 2009

Settlement – Entitlement Issue Tuesday, 28 April 2009

POST RAISING CAPITAL STRUCTURE

million

Issued capital (fully paid ordinary shares) 492.7

s.708 Placement shares 73.9

3 for 4 share Entitlement Issue 424.9

Director Shares (subject to shareholder approval) 5.0

Total shares on issue 996.5

Existing unlisted options held by Directors and Staff ($0.20 – $0.60) 45.5

Sub‐underwriting options to be issued (subject to shareholder approval) 56.0

Total shares and options  1,098.0

Market capitalisation at 7 cents per share (excluding out of the money options) A$73.7

Cash at 28 February 2009 adjusted for equity raising proceeds (before issue costs)* A$37.3

Shareholder Loans at 28 February 2009* A$7.7

Galoc project non recourse debt facility at 28 February 2009* A$13.5

* Assuming USD exchange rate of 0.65

SUMMARY

Fully funded after capital raising with strong support from major shareholders and board

Galoc oil field back on production 25th Feb 09, first million barrels produced, Reserves of ~ 20MMbbls  with further upside

Major Farm‐out deal with BHPB on SC55

Documentation to be completed Q2 2009

BHPB to fund 3D seismic program this year 

Otto carried in deep water drilling in 1 well 2010 and 1 well 2011.

High impact exploration drilling campaign to commence Q2 2009

Low risk onshore gas drilling Italy  ‐ Target up to 250 Bcf recoverable

Onshore oil drilling Argentina   ‐ Target > 100MMbbls recoverable

Turkey onshore gas development  production late 2009/early 2010

Galoc Phase 2 development 2010 onwards

DISCLAIMER

This presentation does not constitute an offer to sell securities and is not a solicitation of an  offer to buy securities. It is not to be distributed to third parties without the consent of Otto  Energy Ltd (the “Company”).

This presentation contains forward‐looking statements that are not based on historical fact,  including those identified by the use of forward‐looking terminology such as statements  containing the words “believes”, “may”, “will”, “estimates”, “continue”, “anticipates”,  “intends”, “expects”, “should”, or the negatives thereof and words of similar import. 

Management of the Company cautions that these forward‐looking statements are subject to  risks and uncertainties that could cause actual events or results to differ materially from those  expressed or implied by the statements.  Management believes that the estimates are  reasonable, but should not unduly be relied upon.  

The company makes no representation, warranty (express or implied), or assurance as to the  completeness or accuracy of these projections and, accordingly, expresses no opinion or any  other form of assurance regarding them.  Management does not intend to publish updates or  revisions of any forward‐looking statements included in this document to reflect the  Company’s circumstances after the date hereof or to reflect subsequent market analysis.

OTTO ENERGY32 Delhi StreetWest Perth WA 6005Ph: +61 (8) 6467 8800Fx: +61 (8) 6467 8801Email: info@ottoenergy.com