Otto Energy Limited (OEL) is pleased to announce that the Edirne Joint Venture (EJV) has secured a five year Gas Sales Agreement for all gas production from the Edirne Licence. This long term gas sales agreement provides the EJV with a certain market for both its current gas reserves while also allowing for the monetisation of its new asset. The EJV has no supply commitments under the GSA and therefore no risk on gas deliverability. The gas produced by the EJV will be sold downstream of the gas plant at a 15% discount to the Industrial Interruptible Tariff benchmark set by BOTAS. Otto expects that the discounted gas price in the short to medium term will be between US$7.00 to US$8.00/ GJ. The Gas Sales Agreement is with AKSA Dogalgaz Toptan Satis A.S (AKSA), an established natural gas distributor in the Republic of Turkey.
The EJV partners comprise Otto which holds a 35% interest in the Edirne Licence and Joint Operators Petroleum Exploration Mediterraean Int (PEMI) (55%) and local Turkish company Petraco (10%).