Otto Energy : Credit Facility Amendment

ASX ANNOUNCEMENT

21 January 2021

CREDIT FACILITY AMENDMENT

• Otto and Macquarie have mutually agreed to an amendment of the three (3) year credit facility established in November 2019 to enable the following:

1. Extension of access to and utilisation of the US$10 million Tranche A2 through to 31 March 2022.

1. Extension of time to identify and progress the GC 21 partners' well intervention plans (until 31 July 2021)

1. In the interim, pending a GC-21 resolution, establish a minimum quarterly production rate average of 1,900 BOEPD

Otto Energy Limited (ASX: OEL) (Otto or the Company) is pleased to announce that the Company has executed a Facility Agreement Amendment Letter with Macquarie Bank Limited (Macquarie) to adjust certain terms of its three-year senior secured term debt facility initially announced on 4 November 2019 ( Credit Facility).

The amendment has been developed on the basis of the recognition that the Bulleit well at Green Canyon 21 (GC 21) has experienced lower than expected performance since beginning production in October 2020. Technical uncertainties surrounding the nature of this anomalous well performance have been identified and extensive technical and analytical studies are ongoing by the GC 21 partnership to develop the mitigation plan going forward.

Given this uncertainty, Otto and Macquarie have worked together to develop this amendment to:

• Establish the timing for a GC 21 mitigation plan to be developed and implemented (31 July 2021);
• Extend the availability of Tranche A2, the US$10 million committed funding available on successful exploration or commencement of commercial production at GC 21 which expired on 31 December 2020, until 31 March 2022; and
• Establish a minimum quarterly average production requirement of 1,900 BOEPD until the GC 21 mitigation is completed (Otto Net WI volume).

Otto Executive Chairman, Mr Michael Utsler, commented: "We have worked closely with Macquarie and truly appreciate their ongoing support in developing these changes to the existing facility. These changes allow Otto to maintain a potential for accessing additional development funding via Tranche A2 into 2022 while enabling the GC 21 partnership to complete its ongoing assessment and planning for potential repair/recompletion of the GC 21 well."

Otto Energy Limited ASX Code: OEL ABN: 56 107 555 046 info@ottoenergy.com T: +61 8 6467 8800

Australian Office: 32 Delhi Street, West Perth WA 6005 Australia PO Box 1414, West Perth, WA 6872 Australia

Houston Office: Suite #1080, Two Allen Center, 1200 Smith Street, Houston, Texas 77002 T: +1 713-893-8894

This announcement has been approved for release by the Company's Board of Directors.

Otto Energy Limited ASX Code: OEL ABN: 56 107 555 046 info@ottoenergy.com T: +61 8 6467 8800

Australian Office: 32 Delhi Street, West Perth WA 6005 Australia PO Box 1414, West Perth, WA 6872 Australia

Houston Office: Suite #1080, Two Allen Center, 1200 Smith Street, Houston, Texas 77002 T: +1 713-893-8894

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