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.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
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.
22 Apr 2016quarterly activities report● Neutral
March quarter report: cash fell to US$26.73m. It records the failed SM-6 #2 well and the SM-71 #1 option, with the discovery announced after quarter end. Tanzania farm-down and Alaska seismic continue. Largely restates known events.
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.
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.
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.
14 Jan 2016quarterly activities report● Neutral
December 2015 quarter: cash US$33.56m (about A$47.95m, ~4 cents a share). Byron farm-in secured, Alaska 3D seismic of 1,170 km2 contracted for Q1 2016, Tanzania drilling targeted Q3 2016, and Otto began a structured exit from the Philippines, requesting a two-year SC55 moratorium.
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.