13 May 2009drilling spud● Neutral
Kirmizihoyuk-1 spudded on 12 May in the Edirne Licence, Turkey (Otto 35%), planned to 450m and about 12 days. It targets about 0.75 bcf of prospective gas, a small prospect. Result to follow.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
13 May 2009production update▲ Good
Galoc restarted on 13 May after the typhoon disconnection, with both wells flowing at about 13,000 bopd. The operator says more disconnections are likely in the June-November typhoon season. Ends the shutdown of 7 May.
12 May 2009capital raising announcement▲ GoodMajor
The revised entitlement issue raised about A$16.2m from 76.5% take-up, and the shortfall was placed, bringing the total to about A$21.2m at 5c. Funds the cash needs flagged earlier.
8 May 2009production update▼ Bad
The Galoc production vessel was disconnected from its mooring on 7 May to protect it from the typhoon weather. It will reconnect once conditions allow. Confirms the typhoon disconnection risk noted earlier.
7 May 2009production update▼ Bad
Galoc production was temporarily suspended as Typhoon Emong passed 300 nautical miles north, with the vessel preparing for possible disconnection. The fifth oil cargo, over 336,000 barrels, was lifted on 5 May. Typhoon risk flagged earlier.
5 May 2009farm in farm out agreement▼ BadMajor
Talks with BHP Billiton on farming out SC55 have been discontinued, following the lapse of the heads of agreement on 31 March. Otto plans to seek partners for its Philippine prospects again when market conditions improve. Ends the deal it had valued at about US$150m.
23 Apr 2009drilling scheduled● Neutral
Gazzata-1 in Italy's Po Valley is now expected to spud around mid May 2009 and take about 30 days to drill. Otto earns 50% by funding it. Confirms the timing after earlier deferrals.
8 Apr 2009capital raising announcement● Neutral
Shareholder letter on the revised 3-for-4 entitlement issue at 5c, up to A$21.2m. Record date 20 April, offer closes 7 May, new shares issued 14 May. Up to 424.9m new shares; total about 1.05bn including 61m placement shares. No shareholder approval needed.
7 Apr 2009capital raising announcement● Neutral
Letter to option holders on the revised entitlement issue: 3-for-4 at 5c (about A$21.2m), replacing the 7c offer. Options must be exercised by the new record date of 20 April 2009 to participate.
3 Apr 2009farm in farm out agreement▼ BadMajor
The BHP Billiton heads of agreement for SC55 lapsed on 31 March as conditions were not met, though talks continue. The capital raising is restructured to up to A$31.5m: entitlement issue cut to 5c, underwriting reduced to A$15.7m, and a second placement at 7c added. Reverses the 20 March plan.
24 Mar 2009capital raising announcement● Neutral
Shareholder letter on the 3-for-4 entitlement issue at 7c: 424.9m new shares on 566.6m existing, taking the total to 991.5m. Funds go to Italy, Argentina, Philippines permit costs, Turkey, loan repayment. No shareholder approval needed. Repeats known terms.
23 Mar 2009capital raising announcement● Neutral
Confirms the entitlement issue timetable: ex-date 25 March, record date 31 March, offer closing 21 April 2009. Clarification only; no change to the 7c, 3-for-4 terms announced on 20 March.
20 Mar 2009capital raising announcement● NeutralMajor
Otto raises about A$35m at 7c a share: A$5.2m placement of 73.9m shares plus a fully underwritten 3-for-4 entitlement issue for A$29.7m. Proceeds fund Italy and Argentina wells, Edirne, and repaying shareholder and director loans, now enlarged to US$7m and A$1.53m. Priced well below the 10c market price.
20 Mar 2009capital raising announcement● Neutral
Letter to option holders on the 3-for-4 entitlement issue at 7c (about A$29.7m, underwritten by Euroz). To take part, options must be exercised by the 31 March 2009 record date. Mostly a mechanical notice of the 20 March raising.
20 Mar 2009other● Neutral
ASX notice that trading in Otto shares will resume once the company's announcement is received. Trading had been suspended pending the capital raising. Administrative.
16 Mar 2009half year report▼ Bad
Half-year to 31 December 2008 shows a loss of $4.8m, against a $91k profit a year earlier. No dividend. Reports Galoc restart on 25 Feb and Otto's share of GPC debt at US$10.4m. Ida Holt is listed as CFO.
12 Mar 2009farm in farm out agreement● Neutral
Otto clarifies its Asia Oil Week figure: it values the BHP SC55 farm-out at about US$150m, mid-point of its own cost estimates (back costs and 3D US$15-30m, two wells US$100-150m). BHP has not endorsed the figures. Deal still conditional on definitive agreements and approvals.
9 Mar 2009production update▲ Good
Galoc produced its first million barrels of oil. CEO Alex Parks called it a significant milestone but said the field was still at the beginning of its life, and thanked the Philippines Department of Energy and the joint venture partners.
6 Mar 2009other● Neutral
S&P index rebalance notice listing many companies. Otto is added to the S&P/ASX 300 and All Ordinaries from 20 March 2009. No operational or financial change for the company.
2 Mar 2009production update▲ GoodMajor
Galoc has averaged over 16,000 bopd since restart, likely settling at 13,000-14,000 bopd. GPC agreed a revised repayment schedule with its banks: Otto's US$1.6m instalments on 27 Feb and by 27 March, balance repaid by 30 June 2009. Otto's share of debt is US$8.8m.
26 Feb 2009production update▲ Good
Partner Nido re-releases the operator's news that Galoc production restarted on 25 February after mooring repairs. Output is to rise to 13,000-15,000 bopd. Nothing new for Otto beyond its own release.
26 Feb 2009production update▲ GoodMajor
Galoc production restarted at 21:30 on 25 February after about ten weeks shut, with a new hold-back mooring. Output is expected to return to about 14,000 bopd. The vessel must still disconnect ahead of typhoons (Otto 18.28% indirect).
25 Feb 2009investor presentation● Neutral
Presentation by the CEO at Asia Oil Week repeating known strategy and assets. Shows cash of about US$5.7m at 31 Dec 2008, debt of about US$10.5m Galoc and US$5m shareholder loan, and market cap about A$49m at 10c.
20 Feb 2009production update● Neutral
Partner Nido re-releases the operator's Galoc repair update: vessel reconnected, riser repairs about to start, restart to follow. It adds nothing new for Otto.
20 Feb 2009production update▲ Good
Galoc's floating production vessel is reconnected to its mooring, with the hold-back mooring partly installed. The operator expects production to restart the following week, if weather holds. Continues the shutdown since December (Otto 18.28% indirect).
23 Jan 2009production update● Neutral
Otto reports Galoc mooring repairs began 22 January and should take about 7 days, with a hold-back mooring added to cut future disconnections. Production is expected to restart around mid-February, later than the end-January target given in December (Otto 18.28%).
23 Jan 2009production update▼ Bad
Partner Nido re-releases the operator's update. Mooring repairs started 22 January with a new stern hold-back mooring; Galoc production is now expected by mid-February. A fourth cargo is deferred. Restart has slipped from end of January.
19 Jan 2009drilling result▲ Good
Partner Incremental reports Ikihoyuk-2 found 27 m of net gas pay over an 87 m interval, about 25% above the pre-drill estimate, with 26% porosity. Not tested yet. Same result Otto reports separately (Otto 35%).
19 Jan 2009drilling result▲ GoodMajor
Ikihoyuk-2 in Turkey reached 500 m and found 27 m of net gas pay between 395 m and 482 m, with 26% porosity. It will be completed for production, not tested now. It is the largest of the six Edirne gas discoveries and is earmarked for early development (Otto 35%).
8 Jan 2009farm in farm out completion▲ GoodMajor
Otto has signed the agreements formalising its Santa Rosa farm-in in Argentina, earning 32.48% (Oromin 67.52%, operator) by funding the first US$1.4m of a US$4.1m work program. Drilling is targeted in the first half of 2009. This resolves the open JV agreement question.