11 Mar 2016other● Neutral
S&P Dow Jones index rebalance notice listing additions and removals from the S&P/ASX indices. The excerpt shown does not mention Otto Energy. No substance for Otto shareholders.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
8 Mar 2016drilling progress report▲ Good
Otto says SM-6 #2 reached 2,389m, with oil and gas shows in three shallower F sands consistent with or better than nearby wells. Possible reserve additions, but the G20 primary target is still undrilled and no final result yet.
8 Mar 2016joint venture update▲ Good
Byron says SM 6 #2 reached 2,389m with three hydrocarbon-bearing F-zone sands seen on logs, and is running casing before drilling to the G20 target. Operator version of Otto's own update on the Otto-funded well.
4 Mar 2016half year report▼ Bad
Half-year to 31 Dec 2015: net loss of $8.6m versus a $10.2m profit a year earlier. Hawkeye-1 cost US$23.7m but Otto was fully carried by BHP, and it found no economic hydrocarbons. Confirms the Philippines exit and the moratorium request.
26 Feb 2016drilling progress report● Neutral
Byron reports SM 6 #2 has reached 1,058m with surface casing cemented. Next casing point is 2,403m, above the primary target; drilling resumes shortly. Routine progress with no result yet.
16 Feb 2016drilling spud▲ GoodMajor
SM-6 #2 spudded on 15 February 2016, Otto's first Gulf of Mexico well, drilling at 146m. About 40 days to drill and evaluate. Otto pays about US$5.3m to earn 50% of the lease, with a 70% chance of success it assigned.
11 Feb 2016drilling scheduled● Neutral
Otto confirms the rig is on location for SM-6 #2, with spud in days and about 40 days to drill. Otto puts the chance of success at 70% and its share of cost at about US$5.3m; success could mean first oil in 2017.
11 Feb 2016drilling scheduled● Neutral
Byron says the Hercules 205 rig is on location and SM 6 #2 should spud within about a week, with roughly 40 days to drill and evaluate. It targets the G20 sand to about 2,900m. Operator version of Otto's own announcement.
8 Feb 2016joint venture update● Neutral
Byron reports the Hercules 205 rig, released by its previous operator, should mobilise to the SM 6 #2 well when weather allows. This is the first well of the Otto farm-in. Note the rig differs from the Hercules 264 named in December.
8 Jan 2016joint venture update● Neutral
Byron says US regulators granted a suspension of production keeping the SM 6 lease alive from 28 December 2015 to 31 December 2016. Byron still expects to spud SM 6 #2, the well Otto is funding, in Q1 2016. Removes a lease-term risk for the farm-in.
23 Dec 2015regulatory community update● Neutral
Partner Red Emperor (15% in SC55) says Otto has asked the Philippines Department of Energy for a two-year moratorium on SC55, since the Hawkeye-1 work obligation was met. Studies would continue meanwhile; a response is expected early 2016. Advances the open SC55 forward-plan thread.
11 Dec 2015farm in farm out agreement▲ GoodMajor
Otto agreed a staged farm-in with Byron Energy to earn up to 50% of two Gulf of Mexico leases and 45% of an onshore Louisiana lease, with drilling from Q1 2016. Otto cites about US$34m cash and first oil in 2017. Fulfils the acquisition-seeking strategy.
11 Dec 2015investor presentation● Neutral
December 2015 investor update on the Byron deal, Tanzania and Alaska, claiming 6+ wells fundable from US$34m cash (A$47m, about 4 cents a share versus a 2.3 cent share price). Terms: Otto pays US$5.3m, US$3.0m and US$6.0m toward the three wells. Mostly repeats the Byron announcement.
11 Dec 2015farm in farm out agreement● Neutral
Byron's side of the Otto deal: Otto can contribute up to US$17.3m (US$14.3m drilling, about US$3.0m past costs) across three projects. If Otto declines further wells after SM 6 #2, the agreement ends. Confirms terms already announced by Otto.
25 Nov 2015investor presentation● Neutral
Managing Director's presentation to the 25 November 2015 AGM, restating Otto's high-impact exploration strategy, the Galoc exit and officer list. The text shown has no new figures or results; it repeats points already announced.
18 Nov 2015director officer appointment● NeutralMajor
Chairman Rick Crabb and Philippine director Rufino Bomasang will retire at the 25 November 2015 AGM. Director John Jetter, on the board since 2007, was elected to become non-executive chairman. Described by Otto as planned succession.
2 Oct 2015material agreement▲ Good
Otto received US$21.3m from BHP Billiton toward Hawkeye-1, the bulk of BHP's up to US$24.5m; the final payment is due in Q4 2015. Otto says it has over US$30m available after the US$7m Alaska payment.
2 Oct 2015asset acquisition disposition● NeutralMajor
Otto paid the final US$7m to Great Bear Petroleum, earning 8% and 10.8% working interests in two Alaskan North Slope areas. Future drilling exposure is capped at US$6m across up to three wells. The option over a further 22,804 acres needs no decision yet.
25 Sept 2015other● Neutral
Appendix 4G corporate governance statement lodged with the ASX, setting out how Otto follows the ASX governance recommendations. Administrative filing with no operational or financial substance.
25 Sept 2015annual report● Neutral
Annual report for the year to June 2015, covering the Galoc sale for US$108m, the 6.4 cent per share distribution, Hawkeye-1 drilling, Tanzania seismic and Alaska entry. Largely summarises events already announced; the text shown contains no new figures.
3 Sept 2015investor presentation● Neutral
Good Oil Conference presentation restating known points: Hawkeye-1 found a 27m hydrocarbon column, over US$41M cash (earlier figure), Alaska entry, and Tanzania's Kito prospect with 2016 drilling. No new information in the text shown.
31 Aug 2015regulatory community update▲ GoodMajor
Tanzania's energy ministry extended the deadline to drill a well in each of the Kilosa-Kilombero and Pangani licences from 20 February 2016 to 20 February 2017. Otto holds 50% with Swala operating. This eases the drilling deadline noted earlier.
17 Aug 2015drilling result▼ BadMajor
Hawkeye-1 reached 2,920m and logged hydrocarbons from 2,710m to 2,737m, with water below. Otto says the find is at the very low end of expectations and not economic. The well will be plugged; Otto is fully carried on cost. Cinco and other prospects remain.
6 Aug 2015asset acquisition disposition● NeutralMajor
Otto terminated the Borealis LOI and instead bought 100% of Borealis for A$1.2m in shares (17,518,250 shares). Borealis can earn 8% and 10.8% of Great Bear's Alaska acreage; payments of US$4m, US$2.5m and US$7m follow. Replaces the earlier US$4m for about 40% plan.
3 Aug 2015drilling progress report● Neutral
Hawkeye-1 spud on 31 July 2015 and had drilled the 26-inch hole to 2,449m by 3 August, cementing casing. The next update is due in about two weeks, once the target reservoir is reached. Routine progress, no result yet.
30 July 2015farm in farm out agreement▲ GoodMajor
Otto signed an option for Pryce Gases to earn 10% of SC55 by paying 10% of Hawkeye-1 well costs, with US$3.225m due before drilling. Otto would retain 68.18%. The Maersk Venturer has mobilised, with drilling due to start that weekend.
27 July 2015farm in farm out completion▲ GoodMajor
Red Emperor says the Philippine Department of Energy approved the assignment of its 15% SC55 interest, the last condition on its farm-in with Otto, so the deal is complete. Maersk Venturer mobilisation remains on schedule.
21 July 2015asset acquisition disposition● NeutralMajor
Otto agreed by letter of intent to put US$4m into Borealis Petroleum, giving it about 40% of Borealis. Borealis can acquire 8% and 10.8% interests in Great Bear's Alaskan North Slope acreage. A new onshore Alaska thread alongside Philippines and Tanzania.
15 July 2015investor presentation● Neutral
Investor presentation for the Noosa conference restating known points: over US$41.2m cash, debt free, a carried Hawkeye-1 well in Q3 2015, and Tanzania's Kito prospect. No new information in the text shown.
2 July 2015drilling scheduled● Neutral
Otto told Maersk to mobilise the drillship from 31 July, with Hawkeye-1 expected to spud early August. It also notes a Pryce Gases offer for a 10% SC55 stake that cannot yet be accepted; the PNOC-EC 15% interest is still awaiting presidential approval.