Past year: ▲ 50%(0.40c – 0.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
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.
12 Jan 2015quarterly activities report● Neutral
December 2014 quarter: Galoc averaged 6,703 bopd, revenue US$16.7m, cash US$31.3m, no debt. Long lead items for Hawkeye-1 were acquired and the SC55 extension confirmed. Galoc sale to Nido awaits shareholder approval. Largely repeats known developments.
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.
14 Nov 2014agm notice● Neutral
AGM addresses repeat known points: Galoc Phase II delivered on time and on budget, the US$101.4m sale (about A$117m) with a proposed 6 cent capital return, a 16 December meeting on the sale, SC55 farm-out hoped for soon, and Tanzania drilling in 2015.
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.
28 Oct 2014quarterly activities report● Neutral
September 2014 quarter: Galoc averaged 7,780 bopd, revenue US$22.2m, cash US$31.2m, no debt. Otto asked the DOE for a 12-month SC55 extension; two companies are doing due diligence on the farm-out. Galoc sale awaits shareholder approval.
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%.
21 Aug 2014production update▲ Good
Galoc has produced over 2 MMbbl in eight months since Phase II start-up, in line with or above the 2P profile, with 10 cargoes expected for 2014. Studies of the Mid and North areas and infill drilling to yield a recommendation late 2014 or early 2015.
10 July 2014investor presentation● Neutral
July 2014 investor presentation repeating known points: Galoc over 2,800 bopd net, SC55 at 93.18% with US$27.5m BHP funding and farm-out due in 2014, Tanzania Kito prospect. No new information.
10 July 2014quarterly activities report● Neutral
June 2014 quarter: Galoc averaged 8,387 bopd, revenue US$21.7m, cash US$7.7m after clearing debt. SC55 farm-out has no formal offers yet and some companies reviewed the data and declined. Board is reviewing spending and capital management.
1 July 2014debt financing▲ GoodMajor
Otto fully repaid the US$35.9m BNP Paribas Galoc Phase II facility, ahead of its December 2015 expiry, using Galoc cash flow and strong oil prices. Otto is now debt free; future Galoc cash is to fund exploration.
6 May 2014regulatory community update▲ Good
The DOE acknowledged revised SC55 deadlines after the 2012/13 force majeure: one deepwater well by 23 December 2014, another by 23 December 2016, about 14 months' extension. Farm-out proposals requested in June 2014; Otto aims to secure a partner shortly after.
2 May 2014asset acquisition disposition▼ BadMajor
Otto withdrew from SC51 in the Philippines, saying a well cannot be safely drilled after Duhat-2 hit high-pressure water, and no other drillable prospects remain. Closes the thread of the July 2013 unsuccessful well, whose costs were already written off.
15 Apr 2014quarterly activities report▲ Good
March 2014 quarter: Galoc averaged 9,168 bopd, revenue US$28.8m, cash US$22.4m. Phase II debt fell to US$24.5m after a US$11.4m repayment. BHP's US$3m for SC55 received; Tanzania now needs two wells before February 2016.
17 Mar 2014director officer appointment● Neutral
Matthew Allen resigned as Company Secretary to focus on being CEO. Scott Blenkinsop, already named on 26 February, remains Company Secretary alongside his Chief Legal Counsel role. Administrative follow-up to the leadership change.
