Otto Energy Ltd has received confirmation from farm-in partner, BHP Billiton, that it has issued a termination notice for the Transocean Deepwater Expedition rig due to the rig not passing key acceptance tests.

BHP Billiton has advised that it is progressing preparations to commence drilling the Cinco well and will provide an update on rig status when available.

Service Contract 55 is currently in Sub-Phase 4 which requires the drilling of the Cinco-1 deepwater well by 5 August 2012. Otto advises that at this point the date for commencement of drilling of the Cinco well is yet to be confirmed and will continue to update shareholders as information becomes available.

Tags: Otto Energy Limited