Each one in plain English, with the numbers worked through for a shareholder.
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.
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.
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.
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.
Independent report lifts SM 71 gross 2P reserves by 10.6 MMboe to 16.2 MMboe; Otto's net 2P is 6.6 MMboe and 1P 2.5 MMboe, almost triple 2017. Driven by D5 sand performance. Delivers the reserves uplift Otto had flagged; Big Tex and Bivouac Peak wells due this month.
ASX temporarily paused trading in Otto pending a further announcement. No reason is given in the notice; the reserves announcement followed the same day.
Otto released a video interview with the Managing Director about the Hilcorp eight-well farm-in and the capital raising announced 31 July. The announcement itself carries no new figures.
Otto completed a A$10m placement (about 169.5m shares) and A$3m institutional entitlement offer (about 51.6m shares, 34% take-up), both at A$0.059. A fully underwritten ~A$7m retail offer follows. Funds the Hilcorp program announced 31 July.
What it means for a shareholder
51.6m new shares at A$0.059 to raise about A$3.0m. That's 2.9% dilution: every existing holder's slice gets 2.9% smaller. If you held A$1,000 of shares (16,949 at the issue price), your slice goes from 0.000996% to 0.000967% of the company. To keep it you'd need 514 more shares - about A$30 at the issue price.
Otto farms into an eight-well Gulf Coast program with operator Hilcorp, earning 37.5% by paying 50% of costs, about US$37.5m, with US$4m payable immediately. It will fund this with a roughly A$20m placement and entitlement offer. A major expansion of Otto's drilling exposure.
Investor presentation supporting the Hilcorp eight-well Gulf Coast farm-in and the A$20m equity raising. Repeats the deal announced the same day; no new terms evident in the readable text.
30 July 2018farm in farm out completion▲ GoodMajor
Otto signed definitive agreements lifting its Alaska Western Blocks interest from 10.8% to 22.5%, in return for drilling a well before 30 May 2019. Prospect is 400 MMbbl gross, with 25-30% chance of success; drilling planned Q1 2019. Completes the 25 June term sheet.
Partner Red Emperor announces the same Alaska Western Blocks definitive agreements, holding 31.5% and having paid its bond and cash shares. Confirms Otto's terms; no new information for Otto.
June quarter: Otto sold 165,120 bbl of oil and 121,599 Mcf of gas for US$11.2m revenue before royalties and costs. Closing cash was US$5.9m. F2's B65 sand is confirmed isolated (about 3 acres) and shut in; F2 recompletion planned for September.
Conference presentation by executive director Paul Senycia, restating Otto's goal of 5,000 boepd production by end-2020 and its Gulf of Mexico and Alaska plans. No new results are evident in the readable text.
Otto completed its Houston office and appointed a US technical team led by Will Armstrong, who has 30+ years of Gulf of Mexico experience. The MD relocates to Houston in late July. The team has consulted for Otto for 6 months. Delivers on the earlier Houston plan.
Otto released a video interview with the Managing Director covering SM 71 production and upcoming Bivouac Peak and Alaska wells. The announcement itself carries no new figures.
Otto elected to join the Bivouac Peak East gas/condensate well at a 40% interest (down from 45%), paying up to US$5.33m of the US$10.8m cost. Funded from SM 71 cash flow, which Otto says exceeds US$3m a month. Resolves the 9 July election.
Byron says all partners, including Otto, have elected into the Bivouac Peak East well (18,000 ft TVD), spud second half of August, about 75 days. Otto's interest is restructured from 45% to 40%; well cost estimated at US$10.8m.
Byron reports the SM 71 F2 well's B65 sand trap is only about 3 acres versus 175 targeted, and F2 stopped flowing and is shut in. F1 and F3 produce about 4,245 bopd. F2 recompletion in B55 sand is planned for early September.
Otto reports the same SM 71 data: F2's B65 sand trap is about 3 acres versus 175 targeted, and F2 is shut in. F1 and F3 produce about 4,245 bopd. The MD calls it disappointing but sees no need for more capital spending now.
Metgasco, holding an option over 10% of Bivouac Peak, elected to join the first well, expected to spud in August to 18,000 ft. This is a partner's election, not Otto's; Otto's own election remains outstanding.
Partner 88 Energy announces the same Alaska Western Blocks term sheet, taking 36% and managing drilling. It cites Otto's 400 MMbbl gross prospect with a 25-30% chance of success. Mostly repeats Otto's release.
25 June 2018regulatory community update▲ GoodMajor
Byron says all Bivouac Peak drilling permits were granted on 21 June. Drilling could start mid-August, with about 75 days to reach 18,000 ft. Otto's election is due by 9 July. This resolves the permit thread; Otto's participation is still pending.
Partner Red Emperor announces the same Alaska Western Blocks deal, taking 31.5% with a US$1.05m bond share. It also announces a new CEO. Confirms the terms of Otto's release; no new information for Otto.
Otto signed a binding term sheet with 88 Energy and Red Emperor to take over most of Great Bear's Alaska Western Blocks and drill a 400 MMbbl gross prospect by May 2019. Otto's interest rises from 10.8% to 22.5%; its share of the US$3m bond is US$750,000. Definitive agreements are due within 30 days.
Revised re-release of Otto's 25 June Alaska announcement. It adds cautionary wording on undiscovered resources and references to Repsol's Horseshoe-1 information. Terms are unchanged: 22.5% interest and a 400 MMbbl gross prospect.
20 June 2018asset acquisition disposition▲ GoodMajor
BOEM awarded the VR 232 lease to Byron, giving Otto the right to a 50% working interest (43.75% NRI) next to SM 71. Otto's share is about US$734,000. Byron's mapped prospect is 11 Bcf and 170,000 barrels gross; no drilling planned until platform capacity allows.
20 June 2018asset acquisition disposition● Neutral
Byron says BOEM awarded it SM 70, VR 232 and VR 251. Otto holds a 50% interest in VR 232, and Otto has no further rights under the 2015 Participation Agreement, including SM 74. Mostly repeats Otto's VR 232 release; SM 70 and VR 251 are Byron-only.
Byron reports April net revenue of about US$2.4m and F1/F3 steady at 4,200 bopd. F2 pressure decline points to a smaller B65 reservoir than mapped, with 300-500 bopd flowing. Same data as Otto's release.
Otto reports April revenue of about US$2.9m (US$2.4m after royalties). D5 wells F1 and F3 hold steady at 4,200 bopd, but F2 has lost over 50% of its pressure and flows only 300-500 bopd. This suggests a smaller B65 reservoir than mapped, confirming the earlier F2 concern.
