Otto (25% stake) is currently drilling within the South Timbalier 224 lease in the Gulf of Mexico shelf.
The prospect sits in 170 feet of water, and is being drilled using the Enterprise 264 jack up drilling rig.
The well has a relatively shallow target depth of 10,800 feet and is expected to take around 55 days to drill and evaluate.
Otto is taking advantage of the recent increase in share price to raising funds, with the ASX granting the company a trading halt.
The halt will remain in place until the opening of trade on Wednesday 25th October 2017, or earlier if an announcement is made to the market.