28 Oct 2024other● Neutral
Appendix 4G and corporate governance statement lodged with the annual report, current as at 17 October 2024. Compliance filing with no business substance.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
22 Oct 2024other● Neutral
ASX says OEL's trading suspension will lift immediately once the company releases its drilling results announcement. Administrative notice with no new information.
22 Oct 2024drilling result● NeutralMajor
The F5-ST well at SM 71 found hydrocarbon pay: 133 ft in the main D5 sand, plus 22 ft (I3) and 13 ft (I2). Drill pipe then stuck and the hole was cemented off (about US$2m net loss); Otto will join a US$1.7m net bypass well.
21 Oct 2024other● NeutralMajor
At Otto's request, trading was suspended from 21 October 2024 pending an announcement on F5-ST drilling results. A trading halt had been granted on 17 October. The result itself is not yet known; suspension is expected to last until 22 October at most.
21 Oct 2024director officer appointment● Neutral
Justin Clyne, a lawyer and company director, is appointed independent non-executive director. John Madden has resigned to pursue other interests. Clyne joins the audit and remuneration committees and will stand for election at the 2024 AGM.
16 Oct 2024security holder rights change▼ Bad
The return of capital timetable slips again, with payment now 20 December 2024 (previously 30 October). The ATO class ruling is still not received and the date may be extended further.
2 Oct 2024drilling spud● Neutral
The Enterprise 264 jack-up rig arrived at SM 71 on 1 October 2024, on schedule, to drill the F5-ST sidetrack. It is a 12-day drill to 7,551 ft MD, with a stated 60% chance of success and 500-1,500 bbl/d anticipated. Drilling is about to start.
16 Sept 2024annual report● Neutral
FY24 revenue fell to US$20.4m from US$33.4m, with a US$9.1m GC 21 impairment and a US$1.2m pre-tax loss. Cash rose to US$40.5m, debt-free and unhedged. The strategic review ended without a sale, and the ATO ruling on the capital return is still awaited.
16 Aug 2024drilling scheduled▲ GoodMajor
Otto will join the F5-ST sidetrack well at SM 71 (50% WI), targeting 500-1,500 bbl/d oil with a stated 60% chance of success. Otto's share is US$2.85m dry-hole and US$5.65m completed cost, funded from cash. Spud expected late September or early October 2024.
14 Aug 2024security holder rights change▼ Bad
The return of capital is delayed again, with payment now 30 October 2024 (previously 28 August). The ATO class ruling is still outstanding and the company acknowledges the unexpectedly long delay.
31 July 2024resource reserve update▼ BadMajor
At 30 June 2024, net 1P reserves fell 18% to 2.0 MMboe, 2P fell 32% to 3.3 MMboe and 3P fell 15% to 6.0 MMboe, mainly from production and GC 21 and SM 71 downgrades. Resources unchanged at 8.7 MMboe.
31 July 2024auditor change● Neutral
BDO Audit Pty Ltd replaces BDO Audit (WA) Pty Ltd as auditor after BDO restructured its audit practice. A confirming resolution will go to the next AGM. Administrative only, with no change of audit firm group.
30 July 2024quarterly activities report● NeutralMajor
The company says it has concluded its strategic review because offers did not match its assessment of value, and will focus on existing assets and returns to shareholders. Cash was US$40.5m, with revenue US$6.1m and 1,690 boe/d. The SM 71 F3 well was shut in indefinitely in May.
8 July 2024director officer appointment● NeutralMajor
CEO Steve Herod resigned to pursue other interests. Chief Commercial Officer Phil Trajanovich became Acting CEO on US$315,000 a year, and the board said filling the role internally would accelerate Otto's cost-cutting initiative.
30 May 2024security holder rights change▼ Bad
The return of capital timetable is pushed back again, with payment now 28 August 2024 (previously 13 June). The ATO class ruling is still not received and there is no assurance on timing.
20 May 2024director officer appointment● NeutralMajor
Chairman John Jetter, a director since 2007, will retire on 30 June 2024. Non-executive director Geoff Page becomes Interim Chairman from 1 July. A change of chair during the unfinished strategic review.
22 Apr 2024security holder rights change▼ Bad
The A$40m (A$0.008 per share) return of capital is delayed again because the ATO class ruling has not arrived. Payment moves from 8 May to 13 June 2024, with no assurance and a possible further extension.
12 Mar 2024half year report▼ Bad
Half-year to 31 Dec 2023: net loss US$5.6m after a US$9.3m GC 21 impairment, on revenue of US$10.9m (down 49%). Cash US$34.1m, no debt. G&A fell 25% to US$2.2m. Return of capital still awaits an ATO ruling, hoped by end April.
23 Feb 2024security holder rights change● Neutral
The A$40m (A$0.008 per share) return of capital is delayed pending an ATO tax-free ruling, now hoped for by end of April 2024. Revised payment date is 8 May 2024, with no assurance and a possible further extension.
20 Dec 2023director officer appointment● Neutral
CFO Sergio Castro resigned immediately. Group Financial Controller Julie Dunmore is promoted to CFO, and Phil Trajanovich becomes Chief Commercial Officer. A modest management reshuffle under CEO Steve Herod.
30 Nov 2023other● Neutral
The chairman's AGM address says the sale process has proven more difficult and protracted than expected. He restates the up to A$40.0m (A$0.008 per share) return and a 2023 loss of US$7.0m caused by the GC 21 impairment.
30 Nov 2023investor presentation● Neutral
AGM CEO presentation largely repeats known facts: 4,795m shares, cash US$32.3m, no debt, market cap A$81.5m at A$0.017, and the planned A$40.0m capital return. No new announcements in the readable text.
27 Oct 2023other● Neutral
Appendix 4G corporate governance checklist for FY23, lodged with the annual report. Administrative filing with no new operational or financial information.
27 Oct 2023capital raising announcement▲ GoodMajor
The board will return up to A$40.0m (A$0.008 per share) to shareholders in early 2024, from existing cash, subject to approval at the 30 November AGM. Described as the first step of the strategic review; a sale is still being assessed.
27 Oct 2023annual report● Neutral
Otto's 2023 Annual Report repeats the FY23 results and reserves already released. It says the strategic review continues and a transaction will be recommended only on terms in shareholders' best interests. No new figures in the readable text.
28 Sept 2023annual report▼ BadMajor
FY23 net loss after tax was US$7.0m (FY22: US$15.5m profit), after a US$19.8m non-cash GC 21 impairment. Revenue was US$33.4m, down from US$40.6m. Cash US$25.9m, debt-free, hedges closed. Strategic review continues with negotiations ongoing.
30 Aug 2023resource reserve update▼ BadMajor
At 30 June 2023, net 1P reserves fell 35% to 2.4 MMboe, 2P fell 18% to 4.8 MMboe and 3P fell 10% to 7.0 MMboe, mainly from production and GC 21 downgrades. Resources rose 257% to 8.7 MMboe, driven by ST 48.
14 Aug 2023other▲ GoodMajor
Otto received US$5.8m as an interim payment on its insurance claim for damage during the September 2022 GC 21 recompletion. The maximum claim is US$8.7m net to Otto; further payments are not assured. This partly offsets the GC 21 cost overruns.
20 June 2023director officer appointment● NeutralMajor
With the strategic review well progressed, Mike Utsler's contract was terminated by mutual agreement. Steve Herod, a Petrohawk co-founder, becomes CEO, John Jetter becomes Non-Executive Chairman and Paul Senycia deputy. Herod has a bonus of up to US$300,000 for a liquidity event by 1 March 2024.
23 May 2023well test result▲ GoodMajor
The GC 21 intervention opened the lower DTR-10 sand, and the well now flows about 1,400 bbl/d oil and 1,000 Mscf/d gas, up from 800 bbl/d oil from the upper zone alone. Cost was US$2.1m net to Otto, below the earlier US$2.8m estimate.