Past year: ▼ 39%(5.00c – 12.0c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
9 June 2016debt financing● Neutral
Metgasco's release on the same Byron deal: up to A$8m secured convertible note, 10m options at A$0.25, and a right to farm into 10% of Bivouac Peak. It says it has no present intention to convert. Repeats Byron's terms.
30 May 2016director officer appointment● Neutral
CEO Maynard Smith and COO Prent Kallenberger extended their service agreements by six months to 24 November 2016, at current pay. Other terms are unchanged.
2 May 2016drilling result▲ GoodMajor
SM71 #1 reached final depth of 7,477 ft and found a further 19 ft gas or gas-condensate sand, adding to the confirmed 132 ft net oil pay. The well will be suspended for production. Otto confirmed it will take 50%, cutting Byron to 50% WI.
28 Apr 2016quarterly activities report● Neutral
March 2016 quarter: SM6 #2 was abandoned after stuck pipe, SM71 #1 found 132 ft net oil pay, and the A$4.8m raising and loan conversion completed. Cash was US$3.3m, with 235.1m shares on issue.
27 Apr 2016drilling result▲ GoodMajor
Preliminary logs show 132 ft of net oil pay in SM 71 #1 (I3 17 ft, J 24 ft, D5 91 ft). Casing is set at 6,820 ft and the well will be deepened about 600 ft to test the rest of D5 and the D6. Otto confirmed it will take 50%, cutting Byron to 50% WI.
27 Apr 2016drilling result▲ Good
Otto's release repeating Byron's SM 71 #1 update: preliminary logs show 132 ft net oil pay, casing at 6,820 ft, and a deepening of about 600 ft within the original budget. Otto says it has earned 50% of SM 70/71. No new Byron information.
20 Apr 2016drilling result▲ GoodMajor
SM 71 #1 is an oil and gas discovery. It reached 6,843 ft and found three hydrocarbon zones totalling about 150 ft gross, including the D5 primary target. Byron plans to complete the well for production, which could make it a producer. Having reached earning depth, Otto can take 50%.
20 Apr 2016drilling result▲ Good
Otto's release on the SM 71 #1 discovery, repeating Byron's three hydrocarbon zones of about 150 ft gross. Otto says it has earned 50% WI in SM 70/71 and expects to return to production in 2017. Duplicates Byron's news.
13 Apr 2016drilling progress report● Neutral
SM 71 #1 is drilling ahead at 3,976 ft after setting 10 3/4" casing at 3,462 ft. Total depth and evaluation are expected within 7 to 10 days. No results yet.
4 Apr 2016drilling spud● NeutralMajor
SM 71 #1 spudded on 3 April 2016 using Hercules 205, drilling at 671 ft. It is the second Otto farm-out well, planned to 7,451 ft in about 20 days at US$4.5m. Otto has paid US$903,610 of past costs.
30 Mar 2016drilling result▼ BadMajor
SM 6 #2 was abandoned at about 8,085 ft after the side-track also stuck, short of the G20 target. Otto did not earn into SM 6, so Byron keeps 100% WI. Otto elected to join SM 71 #1, which is due to spud this week.
30 Mar 2016drilling result▼ Bad
Otto's account of the SM 6 #2 failure: the well was plugged at 8,084 ft after an impenetrable shale, so Otto earns no SM 6 interest and pays no past costs. Otto calls a substitute well unlikely. Largely duplicates Byron's release.
30 Mar 2016farm in farm out agreement▲ Good
Otto's release confirming it will join the SM 71 #1 well, with its share capped at US$3.0m. SM 70/71 is about 50 km from SM 6 and geologically separate. Otto also reimbursed US$0.9m of past costs. Repeats Byron's announcement.
21 Mar 2016drilling progress report▼ Bad
Attempts to free the stuck pipe in SM 6 #2 failed over three days. Byron is starting a side-track from 7,949 ft, still targeting 9,516 ft. Drilling should resume later in the week.
18 Mar 2016drilling progress report▼ Bad
SM 6 #2 drill pipe became stuck at 8,039 ft, about 400 ft above the G20 target, after the 9 5/8" casing was set. Washover and jarring attempts have so far failed. A setback to the first Otto farm-out well.
8 Mar 2016drilling progress report▲ Good
Otto's release repeating Byron's SM 6 #2 update: F-sand shows are consistent with or better than offset wells, with possible reserve additions. It adds Otto's 70% chance of success and development outline; no new Byron information.
8 Mar 2016drilling progress report▲ Good
SM 6 #2 reached 7,837 ft and logs show hydrocarbon sands in the F20, F30 and F40, the last two consistent with the SM 6 #1 BP02 well. The G20 target is still to be drilled after casing; pay counts are preliminary.
26 Feb 2016drilling progress report● Neutral
SM 6 #2 has reached 3,470 ft with 13 3/8" surface casing cemented. Blow-out preventers are being tested before drilling on to 7,885 ft, above the target. Plan remains 9,516 ft in about 40 days; Otto funds US$5.3m of US$8.0m.
25 Feb 2016capital raising announcement● NeutralMajor
The Share Purchase Plan raised only A$285,550 from 1,870,344 shares at A$0.15, well short of the A$2.5m maximum. With the placement, total raised is A$4.8m before costs, and the loan conversion removes the 1 July 2016 repayments.
16 Feb 2016drilling spud▲ GoodMajor
SM 6 #2 spudded on 15 February 2016 and was drilling at 479 ft, aiming for 9,516 ft in about 40 days. It is the first well under the Otto farm-out. Byron is 100% WI now, 50% if Otto earns in.
16 Feb 2016drilling spud● Neutral
Otto Energy's release confirming the SM 6 #2 spud on 15 February, drilling at 479 ft with about 40 days planned. It duplicates Byron's announcement.
15 Feb 2016agm notice▲ Good
EGM results: proxy votes were strongly in favour of all resolutions, including directors' placement shares and loan-to-equity conversions at A$0.15, ratification of the 23.9m-share placement, and 1.7m options to Sack. Formal pass/fail results are not stated.
11 Feb 2016drilling scheduled▲ Good
Hercules 205 is on location for SM 6 #2, with spud due within about a week. The 9,516 ft well targets G 20 Sand 3P reserves of 3.2 mmbo and 2.5 bcf. Cost is US$8.0m, Otto paying US$5.3m, over about 40 days.
11 Feb 2016drilling scheduled● Neutral
Otto Energy's own announcement of the Hercules 205 mobilising to SM 6 #2, estimating a 70% chance of success and first oil around mid-2017 if successful. It largely duplicates Byron's release.
10 Feb 2016capital raising announcement● Neutral
SPP closing date extended a further week to 19 February 2016, with shares to be issued 25 February. Administrative change only.
8 Feb 2016drilling progress report● Neutral
Rig Hercules 205 (not Rig 264 as earlier contracted) is released and awaiting a weather window to move to SM 6 #2, the first Otto farm-out well. Byron is 100% WI now, falling to 50% if Otto earns in.
25 Jan 2016capital raising announcement● Neutral
SPP closing date extended from 29 January to 12 February 2016, giving eligible holders more time at A$0.15. Administrative change only.
22 Jan 2016quarterly activities report● Neutral
December quarter report: cash fell to US$2.76m. It recaps the Otto farm-out, A$4.5m placement, SPP and proposed loan conversion, and the SM 6 lease extension to 31 Dec 2016. SM 6 #2 spud is expected in February 2016. Mostly known items.
12 Jan 2016capital raising announcement● Neutral
SPP offer booklet and terms for the A$0.15 offer, up to A$15,000 per holder, A$2.5m maximum. It repeats the terms in the SPP announcement, with no new substance.
12 Jan 2016capital raising announcement● Neutral
Byron opened the Share Purchase Plan foreshadowed on 30 December: eligible Australian/NZ holders can buy up to A$15,000 at A$0.15, raising up to A$2.5m. It closes 29 January 2016. Drilling is proposed for February 2016.
