Past year: ▲ 50%(0.40c – 0.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
1 May 2018investor presentation● Neutral
Chairman's conference presentation for Otto as a Gulf of Mexico shelf producer and explorer. Its plans are to plan a well on SM-74 or VR 232, pursue new deals, and pick Alaskan targets for drilling in Q1 2019. Repeats known plans; text is partly garbled.
27 Apr 2018quarterly activities report▲ Good
March quarter report: SM 71 first oil began 23 March and all three wells now produce about 4,650 bopd. Closing cash was US$3.30m, down from US$15.02m at 31 December; first sales cash arrived 23 April. Alaska funding and Bivouac Peak permitting remain open.
26 Apr 2018production update▲ Good
Byron says SM 71 is selling about 4,650 bopd after a four-day pipeline shut-in ended 22 April, with 83,000 barrels produced so far. Byron's own net revenue is about US$125,000 a day at US$68 oil. Mostly repeats Otto's release below.
26 Apr 2018production update▲ GoodMajor
Otto says SM 71 is producing about 4,650 bopd, with 41,500 barrels its share so far. At US$68 oil, Otto's net revenue is about US$125,000 a day, or about US$3.7m a month operating cash flow. Management says this funds Gulf of Mexico growth.
24 Apr 2018director officer appointment● NeutralMajor
Paul Senycia, previously VP Exploration, joins the board as an executive director. Otto will move its operational office to Houston, with MD Matthew Allen relocating mid-2018 and a US-based non-executive director planned. Headquarters stays in Australia.
19 Apr 2018farm in farm out completion● NeutralMajor
Red Emperor, an SC55 partner, says the Philippine regulator approved transfer of Otto's SC55 interest to its partners. This resolves the pending assignment and completes Otto's Philippines exit; Red Emperor's stake rises to 37.5%. Text does not state any payment to Otto.
9 Apr 2018production update▲ Good
Byron reports SM 71 F3 began producing on 6 April at 1,559 bopd; all three wells together make 4,288 bopd. F2 shows modest pressure support. This completes the three-well start-up Otto holds 50% of, and the pipeline shut-in has been postponed.
9 Apr 2018production update▲ GoodMajor
Otto confirms F3 is producing at 1,559 bopd, with platform output of 4,288 bopd across three wells. The MD says commissioning of its 50% owned SM 71 is complete and development planning for more sands follows. Resolves the F3 completion delay; the pipeline shut-in is postponed.
4 Apr 2018joint venture update▲ Good
Otto says F1 and F2 are steady at 2,500 bopd, F3 production is expected by end of week, and SM 71 cashflow will contribute materially this quarter. It also says it is pursuing new Gulf of Mexico opportunities and expects to join drilling later in 2018, including Bivouac Peak.
3 Apr 2018joint venture update▲ Good
Byron removed the damaged F3 completion, finished the water pack, and expects F3 production by end of week. F1 and F2 are steady at 2,500 bopd. A pipeline maintenance shut-in of 2-3 days is planned from 10 April.
28 Mar 2018production update▼ Bad
Otto relays that F1 is steady at 2,055 bopd, but F2 was choked back to 468 bopd after pressure declined, possibly from its position near the B65 sand's edge. Sales averaged 2,517 bopd; F3 fishing continues. The F2 setback tempers the earlier near 4,000 bopd.
28 Mar 2018production update▼ BadMajor
F1 is steady at 2,055 bopd, but F2 was choked back to 468 bopd after pressure fell, which Byron links to the well's position near the sand's edge. Combined sales averaged 2,517 bopd over two days. This is below the earlier near 4,000 bopd, so partly contradicts it.
27 Mar 2018other● Neutral
Metgasco, Byron's lender and a 10% Bivouac Peak partner, comments on Byron's first oil and its own farm-in rights. It holds 10% of Bivouac Peak and rights to at least 10% of projects Otto joins. Little new for Otto.
26 Mar 2018production update▲ GoodMajor
First oil from SM 71 started 23 March, with F1 and F2 at about 4,000 bopd combined, restricted. This is Otto's first production since the Galoc sale, and F3 follows. It resolves the long-targeted March start-up, with rates not yet stable.
26 Mar 2018production update▲ Good
Operator Byron reports first oil from SM 71 on 23 March, with F1 and F2 at about 4,000 bopd combined, restricted by facility commissioning. Rates are described as at the upper end of expectations. F3 is still being completed.
22 Mar 2018joint venture update● Neutral
F1 and F2 are connected, regulator inspections are done, and start-up is expected late this week. In F3, the stuck tool may have come free and is being pulled out; F3 needs more checks before it can produce. Management calls the F3 delay minor.
22 Mar 2018joint venture update● Neutral
Byron was apparent high bidder on seven Gulf of Mexico leases, including VR 232, in which Otto may take 50%. First oil at SM 71 is expected late this week, and F3 recovery continues. Mostly repeats Otto's own releases; the extra blocks are Byron's.
22 Mar 2018joint venture update▲ Good
Byron recovered the key service tool from the stuck F3 completion, though the washpipe stayed in the hole. About one more week is needed to repack the interval and finish the well. Same update as Otto's release.
22 Mar 2018farm in farm out agreement▲ GoodMajor
Partner Byron was apparent high bidder at US$1.101m for VR 232, next to SM 71. Otto may take 50% (43.75% NRI) for US$734,000, or 50% of SM 74 if the bid is rejected. This follows the earlier rejection, and the BOEM review can take 90 days.
22 Mar 2018joint venture update▲ Good
Key service tool recovered from the stuck F3 completion; remaining recovery and repacking should take about a week, with F3 ready late next week. F1 and F2 are expected to be producing by then. This resolves the immediate fear that F3 was stuck.
15 Mar 2018joint venture update▼ Bad
Otto reports the SM 71 F3 completion assembly became stuck after sand control work on the D5 sand; recovery could take 7-10 days. The operator is seeking a way to bring F1 and F2 into production meanwhile. Same content as Byron's release.
15 Mar 2018joint venture update▼ Bad
Operator Byron reports the SM 71 F3 completion tools became stuck in the well after sand control work on the D5 sand. Clearing them could take 7-10 days, and Byron is looking at ways to start F1 and F2 meanwhile. Delays the March start-up.
5 Mar 2018joint venture update▲ Good
SM 71 F2 is completed in the B65 sand and shut in, and F3 completion in the D5 sand has begun. Production start-up is targeted for later in March 2018. F3 is the last well to be completed, with production starting shortly after it finishes.
1 Mar 2018half year report▼ Bad
Half-year to 31 December 2017: net loss of A$8.3m (prior year A$2.6m loss). Exploration spend was A$3.7m, mainly the dry ST 224 well, and finance costs were A$2.9m, mainly the convertible note derivative's fair-value change. Production is still expected in March 2018.
26 Feb 2018joint venture update▲ Good
Byron says the Bivouac Peak permit application is under review, the lease is extended to 1 September 2019, and two adjoining state leases (~330 acres) were won. Byron's interest rises to 95% before Otto's 45% option, which applies if Otto elects to join the first well. Drilling is expected in the second half of 2018.
22 Feb 2018joint venture update▲ Good
SM 71 F1 is completed in the D5 sand and shut in, with no flow rates measured yet. F2 completion has begun, and production is still targeted for March 2018. Management says it wants to add to the Gulf of Mexico portfolio.
22 Feb 2018joint venture update● Neutral
Operator Byron reports the SM 71 F1 well completed in the D5 sand and shut in, with F2 completion starting. Mid-March production start-up remains on track. Same content as Otto's release of the same day.
16 Feb 2018resource reserve update▲ Good
Byron says its 30 June 2018 reserves report, due in the September 2018 quarter, should show higher 1P, 2P and 3P reserves from the F2 and F3 wells. It expects most of the B65 sand to move from prospective resource to reserves. No figures given; Otto's reserves not stated.
15 Feb 2018other● Neutral
Otto notes that an independent research report on the company by K1 Capital analyst John Young is on its website. It carries no company news, and Otto disclaims responsibility for the report's views.
5 Feb 2018joint venture update▲ Good
Drilling is finished and the rig is over F1 to start completions. All three SM 71 wells should be completed in about 6 weeks, with production start-up in March 2018. This follows the successful F2 and F3 wells.
