Past year: ▲ 50%(0.40c – 0.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
6 Sept 2016investor presentation● Neutral
September presentation pushes Alaska North Slope drilling, targeting a 650 million barrel prospective resource (100%) with the first two wells. Plans 2-4 wells in 2017, with Otto's exposure capped at US$2.6m per well on the first three. Mostly restates known plans.
26 Aug 2016contract award▲ GoodMajor
Operator Byron buys a used six-slot tripod platform and production equipment for SM71 from Laredo Construction, fixed at under US$4.5m. Installation is expected from mid-2017 with production to follow; Otto bears 50% of costs. Permits are still needed.
29 July 2016joint venture update▼ BadMajor
Otto issues dispute notices to Swala's Tanzanian subsidiary over unpaid cash calls, about US$360,000 of interest, and seeks its removal as Kilosa-Kilombero operator. Otto says Kito-1 is unlikely to be drilled in 2016 until disputes are resolved, a delay to the 2H 2016 spud.
25 July 2016resource reserve update● Neutral
Byron's full reserves report covers its own portfolio, including Bivouac Peak gross prospective resource of 15,990 Mbbl and 177,666 MMcf. Byron's GI 95 gas project was downgraded to contingent resource. Mainly relevant to Otto through Bivouac Peak and SM 71.
25 July 2016resource reserve update▲ GoodMajor
Independent estimate puts Bivouac Peak at 15,288 MBOE net to Otto (unrisked best estimate), up from 3.1 MMbo and 34.6 Bcf at December 2015. The rise is attributed to additional 3D seismic showing a deeper prospect. Drilling planned for 2017.
20 July 2016admin correction● Neutral
Re-release of the 7 July SM-71 reserves announcement after the ASX said it did not meet Listing Rule 5.31. Same 2,271 Mboe net 2P figure, with added required disclosures. No new result.
20 July 2016investor presentation● Neutral
July presentation promotes a 2017 return to production and 6+ wells funded from existing cash. Repeats known facts on SM70/71 (US$8-10m development, 1,500-2,000 bopd), Bivouac Peak, Alaska and Tanzania. Cites 8.9 MMBOE net Bivouac prospective resources.
7 July 2016joint venture update● Neutral
Operator Byron confirms Otto has exercised its option over Bivouac Peak, earning 45% by paying 66.67% of Byron's share of the first well, capped at US$6.0m. Byron will not re-enter SM6 #2 and will plug and abandon it. Drilling expected early 2017.
7 July 2016asset acquisition disposition▲ GoodMajor
Otto exercises its option to take 45% of the ~2,500-acre onshore Bivouac Peak lease in Louisiana, with the first well planned early 2017 and funded from cash. The SM-6 #2 well will not be re-entered; Otto's remaining cost is about US$0.1m and it holds no SM 6 interest.
7 July 2016resource reserve update▲ Good
Byron's operator report on SM 71 shows net 2P reserves of 2,271 MBOE to Byron, up 508% on 2015, with initial production targeted mid-2017. Otto holds an identical 50% interest, so this sets up the same figure for Otto (see Otto's own release).
7 July 2016resource reserve update▲ GoodMajor
Otto books its first Gulf of Mexico reserves: net 2P of 2,271 Mboe at SM-71, a finding cost of US$2.11 per boe. Converts the April discovery into reserves, and Otto targets production in 2017.
21 June 2016farm in farm out agreement▲ GoodMajor
Otto farms out 25% of Kilosa-Kilombero to MV Upstream for US$2.3m of historical cost reimbursement. MV Upstream also carries Otto's remaining 25% up to US$2m in Kito-1, with well cost about US$10m. Subject to approvals; spud expected 2H 2016.
17 June 2016asset acquisition disposition● NeutralMajor
The Philippines Department of Energy approved a two-year SC55 moratorium to 23 December 2017. Otto will not continue and will assign its 78.18% interest to remaining partners. This ends Otto's ten years in the Philippines after the Hawkeye-1 gas find proved uneconomic.
13 May 2016other▼ Bad
Swala says Otto has begun legal action against it, its Tanzanian subsidiary and some current and former directors, seeking about US$1m plus damages over the Pangani licence. Swala denies the claim. Otto's partner in Kilosa-Kilombero is now a litigation opponent.
10 May 2016investor presentation▲ Good
Otto's May presentation promotes the SM70/71 discovery (151 feet total net pay) and a planned 2017 return to production. Development is estimated at US$8–10m gross, 1,500–2,000 bopd initially. Mostly repeats known facts; a reserves report is due in about three months.
2 May 2016joint venture update▲ GoodMajor
Byron reports SM71 #1 reached 7,477 feet and found a further 19-foot gas or condensate sand below the 132 feet of net oil pay. Otto has confirmed it will take its 50% interest in SM70/71. The well will be suspended for production.
29 Apr 2016other● Neutral
Appendix 4G, the checklist pointing to Otto's corporate governance statement. Administrative filing with no substance for shareholders.
29 Apr 2016annual report● Neutral
Annual corporate governance statement for the year to 30 June 2016, setting out compliance with ASX governance recommendations. Administrative disclosure with no new operational or financial information.
28 Apr 2016investor presentation▲ Good
Otto says Great Bear's work, with 3D seismic 90% acquired, supports a multi-well conventional drilling campaign on the Alaskan North Slope in 1H 2017. A nearby well partly de-risks shale potential. Otto holds 8–10.8% and is free-carried on seismic.
27 Apr 2016drilling result▲ GoodMajor
Porosity logs show 132 feet of net oil pay in SM-71 #1 (I3 17ft, J 24ft, D5 91ft). The partners will deepen the well about 600 feet to test the D6 sand, expected within the original budget. Firms up the earlier gross-thickness discovery.
20 Apr 2016drilling result▲ GoodMajor
Byron reports an oil and gas discovery at SM 71 #1, drilled to 2,086m, with three hydrocarbon zones totalling 150 feet gross thickness. Byron plans to complete it for production. Net pay is not yet confirmed. Having drilled to earning depth, Otto can elect a 50% interest, offsetting the SM 6 #2 failure.
20 Apr 2016drilling result▲ Good
Otto confirms the SM-71 #1 Gulf of Mexico discovery: three oil and gas zones totalling 150 feet gross, to 2,086m. Otto has earned a 50% interest in SM 70/71 and says it can fund the work from cash. Net pay is not yet confirmed.
13 Apr 2016drilling progress report● Neutral
Byron says SM 71 #1 has set surface casing at 3,462 feet and is drilling ahead at 3,976 feet, with total depth and evaluation expected within about 10 days. Routine progress with no result yet.
4 Apr 2016drilling spud● NeutralMajor
Byron spudded SM 71 #1 on 3 April 2016, the second well of the Otto farm-in, with about 20 days to drill and evaluate. Otto has paid US$903,610 in back costs and pays 66.67% of the US$4.5m well cost.
30 Mar 2016drilling result▼ BadMajor
Byron said SM 6 #2 was temporarily abandoned before reaching the G20 sand after stuck drill pipe, so Otto earned no SM 6 interest and owed no back costs. Otto elected to join SM 71 #1, paying 66.67% of the US$4.5m estimated dry-hole cost (capped at US$3.0m) plus US$0.9m of past costs.
30 Mar 2016drilling scheduled● NeutralMajor
Otto exercised its option to join the SM-71 #1 well, to spud within a week and take about 20 days. Otto pays about US$3.0m for 50% plus US$0.9m back costs and assigns a 70% chance of success. Follows the SM 6 #2 failure.
30 Mar 2016drilling result▼ BadMajor
Otto confirms SM-6 #2 was plugged and abandoned at 2,464m after stuck pipe in an impenetrable shale, never reaching the G20 target. Otto earns no SM 6 interest, owes no back costs, and about US$100,000 of abandonment cost remains. Spend stays within US$5.3m.
21 Mar 2016drilling progress report▼ Bad
Byron says attempts to free the stuck pipe in SM 6 #2 failed over three days, so it is starting a side-track from 2,423m to the same 2,900m target depth. Drilling is due to resume later in the week.
18 Mar 2016drilling progress report▼ Bad
Byron reports SM 6 #2 got stuck drill pipe at 2,451m, about 400 feet above the G20 target, after the casing was run. Recovery attempts were under way. A setback for the Otto-funded well.
14 Mar 2016joint venture update▲ GoodMajor
Swala, Otto's Tanzania partner, says an independent review lifted gross Kito prospective resources from 151 to 184 million barrels, with Kito-1 still on track for Q3 2016. The Pangani licence showed nothing of commercial interest and is to be relinquished.
