Otto Energy Ltd (ASX:OEL): announcements explained, share price and valuation

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

12 Mar 2007capital raising announcement▲ GoodMajor

Otto placed 16.3m shares at 16c to raise $2.6m from two Swiss-managed oil and gas funds, escrowed for 12 months. This follows the $6.0m placement of February and dilutes existing holders; completion is due about 15 March 2007.

What it means for a shareholder

16.3m new shares at A$0.160 to raise about A$2.6m. That's 9.4% dilution: every existing holder's slice gets 9.4% smaller. If you held A$1,000 of shares (6,250 at the issue price), your slice goes from 0.00399% to 0.00361% of the company. To keep it you'd need 651 more shares - about A$104 at the issue price.

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31 Jan 2007capital raising announcement▲ GoodMajor

Otto arranged a placement of 37.5m shares at 16c to raise $6.0m, said to be heavily oversubscribed and scaled back. Completion is expected around 7 February 2007. Funds go to Philippines, Turkey and Argentina work and working capital, and the placement dilutes existing holders.

What it means for a shareholder

37.5m new shares at A$0.160 to raise about A$6.0m. That's 24% dilution: every existing holder's slice gets 24% smaller. If you held A$1,000 of shares (6,250 at the issue price), your slice goes from 0.00525% to 0.00399% of the company. To keep it you'd need 1,967 more shares - about A$315 at the issue price.

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5 Oct 2006capital raising announcement▲ GoodMajor

The $2.25m placement is complete: 15m shares at 15c with 7.5m free 20c options, issued 5 October 2006. Funds go to the first Bare Boat Charter payment for the Calauit rig. Shares quoted now total about 105.5m.

What it means for a shareholder

15.0m new shares at A$0.150 to raise about A$2.3m. That's 14% dilution: every existing holder's slice gets 14% smaller. If you held A$1,000 of shares (6,667 at the issue price), your slice goes from 0.00736% to 0.00632% of the company. To keep it you'd need 1,105 more shares - about A$166 at the issue price.

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16 Aug 2006capital raising announcement▲ GoodMajor

Rights issue completed: 29,048,125 shares at 15c issued with about 14.5m free 20c options, raising roughly $4.36m. This funds the NorAsian acquisition, so the shortfall was successfully placed.

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2 Aug 2006capital raising announcement▼ Bad

Rights issue take-up was weak: valid applications for 7.17m shares plus 4.19m from directors, leaving a shortfall of 17.69m of the 29.05m shares to be placed by the underwriter. The underwriting should still cover the full raise.

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14 July 2006capital raising announcement● Neutral

Prospectus and newsletter despatched for the 1-for-2 rights issue (29.05m shares at 15c, about $4.36m, closing 28 July). Repeats known terms and project plans; directors say they will take up their entitlements. No new result.

What it means for a shareholder

29.1m new shares at A$0.150 to raise about A$4.4m. That's 24% dilution: every existing holder's slice gets 24% smaller. If you held A$1,000 of shares (6,667 at the issue price), your slice goes from 0.00736% to 0.00558% of the company. To keep it you'd need 2,139 more shares - about A$321 at the issue price.

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4 July 2006capital raising announcement● Neutral

Shareholder letter on the rights issue (29.05m shares at $0.15, about $4.36m) with its timetable: record date 11 July, close 28 July, allotment 8 August 2006. Underwriter Max Capital is paid 1% management and 5% underwriting fees. No new information beyond the prospectus.

What it means for a shareholder

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30 June 2006capital raising announcement● Neutral

Prospectus lodged for the underwritten rights issue: 29,048,125 shares at $0.15 (1 for 2), with a free option per 2 shares taken up, raising about $4.36m. Closes 28 July 2006. It funds the NorAsian acquisition announced 6 June.

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17 Jan 2006capital raising announcement● NeutralMajor

Ottoman placed 9,000,000 shares at $0.20 to raise $1.8 million, each with a free attaching option exercisable at $0.20 by 1 December 2006. Funds go to Thrace Basin drilling, Philippines costs and working capital; 3 million shares and all options need shareholder approval.

What it means for a shareholder

9.0m new shares at A$0.200 to raise about A$1.8m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.

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