Past year: ▲ 50%(0.40c – 0.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
4 Dec 2018drilling spud● NeutralMajor
Lightning (Green #1, Matagorda County, Texas), the second Hilcorp program well, has started drilling. It targets 15,500 ft, takes about 60 days, with 45% chance of success and 4.57 MMboe gross mean prospective resource. Otto's cost is about US$4.97m for a 37.5% interest.
30 Nov 2018other● Neutral
Otto released a CommSec video interview with Chairman John Jetter giving a company update. The announcement has no written content of its own, only a link.
15 Nov 2018other● Neutral
At the AGM, Chairman Jetter called the Big Tex and Bivouac Peak dry holes a 'temporary setback' and kept the strategy, citing seven more Hilcorp wells and one Alaska well. He expects Otto may eventually become an operator. Nothing new.
15 Nov 2018investor presentation● Neutral
The AGM presentation from the MD reviews achievements since November 2017, including SM 71 first production in March 2018 and over 750,000 bbl produced to date. The text is truncated; it appears to repeat known facts.
12 Nov 2018investor presentation● Neutral
Otto presented at the Morgans Energy Conference, restating the goal of 5,000 boepd by end-2020 from about 1,850 boepd now, plus Alaska drilling in Q1 2019 and a possible SM-74 or VR 232 well. Repeats known facts; text is partly garbled.
17 Oct 2018joint venture update● Neutral
Operator Byron says the SM 71 F2 recompletion to the B55 sand is finished. It flowed 382 bopd at 99% oil during flowback but is now unloading at an unstabilised 150-200 bopd. Otto holds 50%; stable rates are expected within weeks.
15 Oct 2018other● Neutral
ASX lifted Otto's trading suspension on 15 October following the Big Tex announcement. Administrative notice only.
15 Oct 2018drilling result▼ BadMajor
Big Tex, the first Hilcorp program well, reached 13,722 ft MD. Despite hydrocarbon indications on mud logs, there was insufficient producible reservoir, so it is being plugged and abandoned as sub-commercial. Second dry hole in a week; next Hilcorp well, Lightning, is due to spud in November.
12 Oct 2018other● Neutral
At Otto's request, ASX suspended trading on 12 October pending a Big Tex drilling update, expected before trading on 15 October. Procedural notice; the result followed.
11 Oct 2018drilling result▼ BadMajor
Weiss-Adler No. 1 at Bivouac Peak East reached 17,766 ft and was deemed uncommercial: a water-bearing sand and tight gas sands with under 5 net feet of hydrocarbons. It is being plugged and abandoned. Cost is under US$7.5m versus US$10.8m budget. Otto holds 40% and is in a trading halt.
9 Oct 2018other● Neutral
Otto lodged its Appendix 4G corporate governance checklist with the annual report, pointing to its website statement dated 15 September 2017. Administrative filing with no new information.
9 Oct 2018investor presentation● Neutral
Otto presented at the Morgans Queensland conference. It restates the goal of 5,000 boepd by end-2020, from about 1,850 boepd now, with planned Q1 2019 Alaska drilling and an SM-74 or VR 232 well. Repeats known facts; the text is partly garbled.
9 Oct 2018annual report● Neutral
Otto's 2018 annual report describes the shift from explorer to producer with SM 71 and says it will take part in ten exploration wells by end-2019. It restates the 5,000 boepd by 2020 goal. Nothing new beyond known events.
5 Oct 2018drilling progress report● Neutral
Byron reports Weiss-Adler No. 1 drilling ahead at 14,856 ft MD after cementing a 9 5/8-inch liner at 14,422 ft. Target is 18,000 ft TVD. Routine progress, no result yet.
27 Sept 2018joint venture update● Neutral
Operator Byron says recompletion of the SM 71 F2 well to the B55 sand has begun after permits were approved. A liftboat is on site; work should take up to three weeks and cost about US$1.1m. Resolves the September recompletion thread.
24 Sept 2018drilling progress report● Neutral
Byron reports Weiss-Adler No. 1 drilling ahead at 13,918 ft MD, with 11 7/8-inch casing cemented at 11,890 ft. Target is 18,000 ft TVD. Otto holds 40%. Routine progress, no result yet.
21 Sept 2018annual report● Neutral
Otto lodged its statutory financial report for the year to 30 June 2018, with the AGM set for 15 November 2018. The extract provided covers directors and the corporate directory only; no financial figures are readable here.
19 Sept 2018production update● Neutral
Operator Byron reports SM 71 gross sales stabilised at 3,600 bopd and 6.0 MMcf/d, with cumulative 641,737 bbl oil. This is below the ~4,000 bopd reported in August. F2 B55 recompletion is due late September.
19 Sept 2018production update● Neutral
Otto repeats the SM 71 update: gross 3,600 bopd and 6.0 MMcf/d, down from ~4,000 bopd in August, with oil falling and gas rising. F2 recompletion to the B55 sand (about US$1.1m gross, three weeks) starts late September; pressure work planned for November.
4 Sept 2018drilling progress report● Neutral
Operator Byron reports Weiss-Adler No. 1 at Bivouac Peak East drilling ahead at 4,900 ft after cementing 16-inch casing at 4,040 ft. Target remains 18,000 ft TVD, about 75 days total. Routine progress, no result yet.
30 Aug 2018drilling spud● NeutralMajor
Drilling began on Big Tex, the first of eight Hilcorp program wells, to 12,700 ft TVD in about 55 days. Otto earns 37.5% by paying 50% of drilling costs, about US$4.23m. Company-assessed chance of success is 54%; mean gross prospective resource 6.5 MMboe.
29 Aug 2018contract award● Neutral
Partner Red Emperor reports operator 88 Energy signed a rig contract with Nordic-Calista for the Winx prospect on Alaska's Western Blocks, with drilling on schedule for Q1 2019. Same event Otto reports; no new information for Otto.
29 Aug 2018contract award▲ GoodMajor
Operator 88 Energy signed a rig contract for the Winx prospect (400 MMbbl gross, 75 MMbbl net to Otto, 25-30% chance of success) on the Alaska Western Blocks. Permitting is progressing and drilling is planned for early 2019, advancing the Alaska plan.
29 Aug 2018contract award● Neutral
Operator 88 Energy announced the rig contract for the Winx well on the Alaska Western Blocks, drilling in Q1 2019, permitting on schedule. Duplicates the news reported by Otto and Red Emperor; no new information for Otto.
27 Aug 2018drilling spud● NeutralMajor
Otto announced the Bivouac Peak East well (Weiss-Adler No. 1) began drilling 25 August, 40% interest, 18,000 ft TVD, about 75 days. Otto pays up to US$5.33m of the US$10.8m cost. Resolves the open spud thread; result awaited.
27 Aug 2018drilling spud● Neutral
Operator Byron reports drilling began 25 August on the Weiss-Adler No. 1 well at Bivouac Peak East, targeting 18,000 ft TVD and 32.2 MMboe gross prospective resource, about 75 days. Duplicates Otto's own announcement of the same well.
24 Aug 2018capital raising announcement▲ GoodMajor
The retail offer closed oversubscribed: A$5.5m (78%) of entitlements taken up, A$7m raised via 118.5m shares at A$0.059, with A$4.5m of excess applications refunded. Total raising is A$20m, so the underwriters receive no shares. Completes the 31 July raising to fund Hilcorp, Bivouac Peak and Alaska.
What it means for a shareholder
119m new shares at A$0.059 to raise about A$7.0m. That's 6.5% dilution: every existing holder's slice gets 6.5% smaller. If you held A$1,000 of shares (16,949 at the issue price), your slice goes from 0.000996% to 0.000932% of the company. To keep it you'd need 1,181 more shares - about A$70 at the issue price.
Create a free account to see this worked out for your own holding.
17 Aug 2018admin correction● Neutral
IOOF replaced its 14 August substantial holder notice, saying it contained old transaction data from a saving error. The holding is unchanged at 6.773% (118.7m shares); the corrected list shows many trades, including a 39.96m share sale and a 33.9m share purchase on 9-10 August.
14 Aug 2018other● Neutral
IOOF Holdings (via Perennial Value Management) reported its Otto holding fell from 7.873% to 6.773% of voting power. The transaction details were later found to be wrong and were corrected on 17 August.
7 Aug 2018capital raising announcement● Neutral
The retail entitlement offer opened and the booklet was despatched: 1 new share for every 9 held at A$0.059, closing 21 August. It is the retail part of the roughly A$10m entitlement offer announced 31 July.
