25 June 2015director officer appointment● Neutral
Matthew Allen, CEO since February 2014, was appointed Managing Director from 24 June 2015 and remains CEO. His fixed salary is A$475,000. Leadership continuity rather than a change of direction.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
9 June 2015dividend declaration▲ GoodMajor
Shareholders approved the return of capital (about 99.1% of proxies in favour), and directors declared the A$0.0076 unfranked special dividend. A$0.064 per share will be paid on 26 June 2015, completing the payout planned since the Galoc sale.
21 May 2015regulatory community update▲ Good
The ATO published its final Class Ruling (CR 2015/36) on the A$0.064 distribution, consistent with the draft: A$0.0564 return of capital plus an A$0.0076 special dividend if shareholders approve. This clears the tax ruling the payout was waiting on.
5 May 2015contract award▲ GoodMajor
Otto signed a binding contract for the Maersk Venturer drillship, finalising the earlier letter of intent. Mobilisation starts 17 July-15 August 2015; Hawkeye-1 costs US$30-35m (dry hole). Otto says it is free-carried via BHP's US$24.5m and Red Emperor, keeping 78.18%.
5 May 2015material agreement● Neutral
Red Emperor's release that Otto signed a binding Maersk Venturer contract for Hawkeye-1, with a 17 July to 15 August 2015 window and about 23 days to drill. Cost is US$30-35m; Red Emperor's exposure is capped at US$5.625m. Repeats Otto's announcement.
4 May 2015capital raising announcement● Neutral
Otto received a draft ATO ruling on the planned A$0.064 per share payout. It will be A$0.0564 return of capital plus, if shareholders approve, an A$0.0076 unfranked special dividend. A June 2015 general meeting will vote on it.
20 Apr 2015investor presentation● Neutral
Investor presentation restating known points: over US$102m cash and debt free, A$0.064 capital return subject to approval and an ATO ruling, a carried Hawkeye-1 well in Q3 2015, and Tanzania's Kito prospect. No new information in the text shown.
2 Apr 2015director officer appointment● Neutral
Neil Hackett became Company Secretary from 1 April 2015, replacing Scott Blenkinsop, who resigned from that role. Matthew Worner was appointed Commercial Manager. Administrative changes.
10 Mar 2015half year report▲ Good
Half-year to 31 December 2014: net profit after tax US$16.888m and cash US$31.299m, including US$10.823m held by Galoc entity held for sale. The Galoc sale gain falls in the second half. Confirms the proposed A$0.064 capital return.
2 Mar 2015farm in farm out agreement▲ GoodMajor
Otto signed a farm-in with Red Emperor to earn 15% of SC55, with its well cost capped at US$5.625m. Otto also signed a letter of intent for the Maersk Venturer drillship for Hawkeye-1, planned for Q3 2015. This is the first firm farm-out partner after the PNOC-EC expression of interest.
2 Mar 2015farm in farm out agreement▲ Good
Red Emperor Resources' own announcement of its farm-in to earn 15% of SC55 by paying for part of the Hawkeye-1 well. It is also raising A$2.13m. Hawkeye-1 is expected early Q3 2015. Repeats Otto's announcement from the partner's side.
2 Mar 2015farm in farm out agreement● Neutral
Red Emperor's re-release of the Maersk Venturer drillship letter of intent for Hawkeye-1, attaching Otto's announcement. It adds that drilling is expected early Q3 2015. Nothing new beyond Otto's own release.
17 Feb 2015asset acquisition disposition▲ GoodMajor
The Galoc sale to Nido completed; final proceeds of US$77.4m lifted cash to US$106m. The board intends to raise the proposed capital return to A$0.064 per share (A$73.9m), pending an ATO class ruling and a shareholder vote. Remaining cash funds SC55 and Tanzania exploration.
20 Jan 2015security holder rights change▲ Good
Shareholders approved the sale of Galoc Production Company to Nido, with proxies about 99.5% in favour. Closing is expected within two weeks. This clears the main condition on the US$108m deal and the planned capital return.
9 Jan 2015farm in farm out agreement▲ GoodMajor
PNOC Exploration Company expressed interest in a 15% SC55 farm-in; commercial terms are agreed, subject to Philippine presidential office approval. Hawkeye-1 is now expected in Q3 2015, with long lead items committed. Best net resource is 74 MMbbl after the farm-down. Progresses the long-sought farm-out.
6 Jan 2015joint venture update▲ Good
The joint venture finished the 430 km 2D seismic survey in the Kilombero Basin, Tanzania, where Otto holds 50%. Data is being processed to map more drilling targets alongside the Kito prospect for 2015. This completes the survey flagged as under way in late 2014.
17 Dec 2014asset acquisition disposition▲ Good
Nido paid the remaining US$9.8m of its deposit, so the full deposit for the US$108m Galoc sale is in hand. Otto refunded Risco's US$10.14m deposit under the terminated Risco agreement.
12 Dec 2014asset acquisition disposition● Neutral
Nido's own announcement of its US$108m cash offer for Otto's Galoc interest, recommended by Otto's board. A Bangchak US$120m loan facility backs it. Nido's Galoc stake would rise to 55.88% and it would become operator. Repeats Otto's announcement from Nido's side.
12 Dec 2014asset acquisition disposition▲ GoodMajor
Nido Petroleum agreed to buy Otto's Galoc interest for US$108m, US$6.6m above Risco's US$101.4m offer. Risco waived its match right and its deal ended. A new shareholder meeting is set for January 2015; the capital return is now expected in Q1 2015.
26 Nov 2014regulatory community update▲ GoodMajor
The Philippines DOE granted a 12-month extension of SC55 Sub-Phase 4, which now expires 23 December 2015, giving more time to drill Hawkeye-1. Farm-out talks continue, with an update promised soon. This resolves the earlier December 2014 well deadline.
24 Nov 2014price query● Neutral
Otto responded to a West Australian article speculating about a corporate transaction, saying it has received no proposals of the type described. Restates the 16 December meeting on the Galoc sale to Risco.
29 Oct 2014joint venture update▲ Good
Early Kilombero seismic shows evidence of four new structures, 5-10 km long, along the western basin fault, resembling Kenya's Lokichar Basin discoveries. Otto and Swala aim to mature them into prospects for the first well in 2015. Builds on the earlier Kito prospect.
3 Oct 2014investor presentation● Neutral
Notice of a webcast interview in which CEO Matthew Allen explains the Galoc divestment. No new information in the text.
2 Oct 2014joint venture update▲ Good
Operator Swala completed the 200 km 2D seismic survey in the Moshi Basin (Pangani licence), meeting the Third Contract Year work obligation. Preliminary interpretation shows potential leads for 2015 drilling. Work now moves to 430 km in Kilombero; Otto holds 50%.
29 Sept 2014annual report● Neutral
2014 annual report: Chairman and CEO highlight Galoc Phase II completion and the US$101.4m Galoc sale to Risco. Priorities are completing the sale, a 700 km Tanzania seismic survey ahead of 2015 drilling, and finding an SC55 farm-out partner for Hawkeye-1.
22 Sept 2014investor presentation● Neutral
Presentation explaining the Risco sale: US$101.4m versus a US$74.6m unaudited balance sheet value. Of this, US$62m is for the A$0.06 capital return and US$39m for working capital. Completion is expected around December 2014. Repeats the announcement; adds a farm-out claim of two candidates in discussions.
22 Sept 2014asset acquisition disposition▲ GoodMajor
Otto agreed to sell its 33% Galoc interest (via Galoc Production Company) to Risco Energy for US$101.4m, effective 1 July 2014; US$10.14m deposit paid. Proceeds fund two years of exploration and a proposed A$0.06/share capital return. Needs shareholder approval; meeting by December 2014.
9 Sept 2014investor presentation● Neutral
Good Oil Conference presentation repeating known points: Galoc over 2,650 bopd net, SC55 at 93.18% with farm-out to complete in 2014, Tanzania seismic under way. No new information.
28 Aug 2014investor presentation● Neutral
Conference presentation by VP Exploration Paul Senycia on East African oil exploration history, given in Perth. Appears to be a general industry overview; no new Otto results seen in the readable text.
25 Aug 2014joint venture update● Neutral
Operator Swala began 2014 seismic in Tanzania: about 200 km of 2D over the Moshi basin in Pangani within four weeks, then 430 km in Kilombero. Aims to firm up drilling targets for a planned 2015 campaign. Otto holds 50%.