Otto shares up, Koyustu-1 confirmed as a future producer (updated)

West-Perth based oil and gas exploration company Otto Energy has confirmed a gas discovery at Koyustu-1 in Turkey as a future producer.

The discovery is located in the Edirne Licence, Thrace Basin, Turkey.

Otto shares closed up 8.6 per cent, or 1.5 cents, to 19 cents.

Otto said it and its joint venture partners were confident that recent testing of the Koyustu-1 well had firmed up the potential for gas production and it woud now move its rig to its first gas discovery well, Bati Umur-1, for testing of gas intervals.

The Edirne Licence is a joint venture between Otto, which has a 65 per cent stake and Incremental Petroleum, which has a 15 per cent share while Turkish operators Merty Energy and Petrako Limited each hold a 10 per cent share.