Past year: ▲ 50%(0.40c – 0.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
2 Jan 2018joint venture update● Neutral
Operator Byron says F2 will be completed for B65 production and an F3 well will be drilled to a second D5 take point. This delays first production about a month, to early March 2018. Same content as Otto's release.
2 Jan 2018joint venture update● NeutralMajor
F2 will be cased and completed to produce the B65 sand, after the stuck pipe. A third well, F3, is added for the D5 sand. First production moves back about a month, from late January to early March 2018, in exchange for a third producing well.
27 Dec 2017drilling result▲ GoodMajor
SM 71 F2 found oil in four sands, with preliminary net pay of 190 ft, including B65 (52 ft) and D5 (117 ft). B65 moves from prospective resource towards reserves, with a significant reserves uplift expected. Drill pipe stuck below the D5 at the time.
27 Dec 2017drilling result▲ Good
Operator Byron reports F2 hit oil in four sands, with preliminary net pay of 190 ft including 52 ft in B65 and 117 ft in D5. Drill pipe became stuck below the D5 and was being freed. Same result as Otto's release.
18 Dec 2017drilling progress report● Neutral
SM 71 F2 is drilling ahead at 4,895 ft MD after setting casing at 3,685 ft, proceeding to plan. Total depth (planned 8,965 ft) is expected before the end of December. No new result.
18 Dec 2017joint venture update● Neutral
Operator Byron reports SM 71 F2 drilling ahead at 4,895 ft after setting 10 3/4-inch casing at 3,685 ft. It expects total depth by end of December. Same content as Otto's release of the same day.
15 Dec 2017drilling result▼ BadMajor
ST 224 #1 reached 10,900 ft and the target BN sand came in close to prediction but is water bearing, so the well will be plugged and abandoned. A dry hole for the well flagged as a Q4 catalyst. SM 71 F2 is next.
4 Dec 2017drilling spud▲ GoodMajor
The SM 71 F2 well has spudded and was at 564 ft on 3 December. B65 is tested first, then the D5 sand, with about a month to drill and evaluate. First production is still expected in late January 2018. Otto holds 50%.
30 Nov 2017joint venture update● Neutral
Operator Byron reports the Ensco 68 rig jacked up at SM 71 on 26 November and preparing to spud F2 later that week, with about a month to drill and evaluate. Byron attributes 1.6 MMboe net prospective resource to B65. Duplicates Otto's own release.
30 Nov 2017joint venture update▲ Good
The Ensco 68 rig is jacked up on location at SM 71, with F2 to spud later this week and about a month to drill and evaluate. F2 will also test the B65 sand, which could double the field size. First production is still late January 2018.
29 Nov 2017drilling progress report▲ Good
ST 224 #1 has 13 5/8-inch casing set at 8,084 ft TVD, with strong wet gas shows in thin intervals above the 10,800 ft target. The target, a mid-case 3.2 MMbbls oil plus 90 Bcf gas (100% basis), is still to be drilled. No result yet.
29 Nov 2017investor presentation● Neutral
AGM presentation restates SM 71 on track for January 2018 first production and ST 224 at a critical stage. It says Alaska drilling is delayed to 2019 pending operator funding, and that the placement and SPP raised A$12.0m. Largely repeats known facts.
29 Nov 2017other● Neutral
Chairman Jetter's AGM address calls 2017 a year of transition, with all non-US interests divested and SM 71 first oil expected in early 2018. ST 224 results are due soon. It repeats known facts and adds no new figures.
22 Nov 2017joint venture update▲ Good
Installation of the SM 71 F platform jacket and decks is complete with no safety or operational issues. The Ensco 68 rig is due on location 25 November to drill F2, which also tests the B65 sand. First production is still targeted for late January 2018.
22 Nov 2017capital raising announcement▲ GoodMajor
The share purchase plan drew A$6.2m of applications against a A$1m target, and the board will accept A$3.5m at A$0.035, scaling applicants back. Shares issue about 27 November. Together with the A$8.5m placement, this lifts the recent raising to about A$12m.
8 Nov 2017investor presentation● Neutral
Otto releases a video of CEO Matthew Allen's ten-minute presentation at the 30 October London conference. The text contains only a link and no new information.
6 Nov 2017joint venture update▲ Good
Loading of the SM 71 platform jacket and decks onto barges is complete. Offshore installation starts 10 November and takes about six days. First production is still targeted for late January 2018, with the F2 well to test the B65 sand.
3 Nov 2017regulatory community update▼ BadMajor
Alaska drilling is now unlikely in 2018, with operator Great Bear targeting a 2019 winter season because it has no firm funding. This contradicts the earlier early-2018 first well. Great Bear is seeking extensions on 48 of 60 leases expiring 1 May 2018. ST 224 was at 4,615 feet.
30 Oct 2017investor presentation● Neutral
Conference presentation update: ST 224 surface casing is set and the well is at 1,637 feet, with target interval expected mid-December. SM 71 first production is still January 2018. It also restates the placement: 1.186bn shares rising to 1.429bn.
30 Oct 2017capital raising announcement● Neutral
The share purchase plan is open to eligible shareholders to 17 November, up to A$15,000 each at A$0.035, a 17.3% discount to the five-day average price. It targets about A$1m, not underwritten. Mailed with the AGM notice. Follows the 25 October placement.
25 Oct 2017asset acquisition disposition▲ GoodMajor
Partner Houston Energy won the ST 235 lease next to ST 224. Otto has the right to acquire a 25% working interest and intends to exercise it. The lease carries a reduced 12.5% federal royalty. It adds follow-up acreage if ST 224 succeeds.
25 Oct 2017capital raising announcement● NeutralMajor
Otto raises A$8.5m through a placement of 243m shares at A$0.035, with Molton taking A$1.6m. An SPP of up to about A$1m at the same price will follow. Funds go to SM 71 wells, ST 224 and growth options. Directors' A$0.2m tranche needs AGM approval.
What it means for a shareholder
243m new shares at A$0.035 to raise about A$8.5m. That's 17% dilution: every existing holder's slice gets 17% smaller. If you held A$1,000 of shares (28,571 at the issue price), your slice goes from 0.00241% to 0.002% of the company. To keep it you'd need 5,853 more shares - about A$205 at the issue price.
Create a free account to see this worked out for your own holding.
23 Oct 2017joint venture update▲ Good
Operator Byron finished laying the SM 71 oil and gas export pipelines on 21 October. Platform load-out starts 30 October, with installation to follow. First production is still targeted for late January 2018.
23 Oct 2017investor presentation● Neutral
Otto releases a video interview with CEO Matthew Allen on ST 224 and SM 71. The text contains only a link and no new information.
20 Oct 2017drilling spud▲ GoodMajor
The ST 224 #1 exploration well has started drilling, at 1,240 feet on 19 October, targeting 10,800 ft TVD. Otto holds 25% with W&T Offshore operating; about 55 days to drill and evaluate. This is the Q4 well flagged earlier; no result yet.
16 Oct 2017investor presentation● Neutral
October investor presentation restates the Gulf of Mexico strategy, SM 71 first oil in January 2018 and the ST 224 well. Text shown has no new results.
5 Oct 2017drilling scheduled▲ Good
Enterprise 264 rig due on location within a week, with ST 224 drilling to start by mid-October. Target is 3.2 MMbbls oil plus 90 Bcf gas (mid-case, 100%); about 55 days to drill. Otto holds 25%. Confirms the Q4 timing flagged earlier.
29 Sept 2017annual report● Neutral
2017 Annual Report, titled 'Returning to Production', restates the North American strategy, the US$8.2m convertible note funding and the coming SM 71 production. Chairman and MD letters add no new results in the extract.
29 Sept 2017annual report● Neutral
Appendix 4G for the year to 30 June 2017: Otto says its corporate governance statement is on its website and was approved by the board as at 15 September 2017. Administrative filing alongside the annual report; no new commercial information.
28 Sept 2017resource reserve update▲ GoodMajor
An independent 30 June 2017 estimate put Otto's SM 71 2P reserves at 2,793 Mboe, up from 2,271 Mboe, and the B65 prospective resource at 2.869 MMboe. Bivouac Peak was unchanged at 20,520 Mboe. First production was expected in January 2018 at 3,000-4,000 bopd from two wells.
