Otto Energy Ltd V.OEL

RE: KBC/OEL/CCX/Kinetics

[Malpeque]

Amswer to the wells on PEI... Three wells Bear River No.1 Meteor---Naufrage #1 Soguip and Cable Head Chevron Offshore all had gas shows. The are in a stratight line if you put the GPS to them on the map. Meteor did not test and stimulate their well as the partner was causing all amounts of problems amnd not paying his bills. The well was not the sweet spot expected but had a good show and never tested as they had to abandon to earn the property from ANGREN and BRJV Naufrage well was not tested and workers were asked to keep quiet at the time and cememt if off as it cost money and there was not way to sell or do anything with gas. They were told to shut up and cap as the government would require tests that would cost more money to no advanage to the company. Offshore Cheveron was told about the gas they stuck and asked what to do with it, again they sent a quick message to cement if off and make no more comments as it would only cost money and they were looking for oil. Not tested. Side comments..... the offhore PEI strke gas well East point E-49 HBOG was drilled and they also tried to get off the site with no testing of the gas as it was just an irritant to them. They were not so tight liped and they were ordered by government to go back and test a year or two later. Thus the good data.