15 Mar 2010half year report● Neutral
Half-year to 31 December 2009: loss A$3.5m (prior period A$4.8m loss), no dividend. Cash up A$6.0m to A$18.2m, driven by A$14.8m (US$13.1m) received from GPC. Argentine Santa Rosa stake relinquished for A$1.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
5 Mar 2010other▼ Bad
S&P index rebalance notice; Otto Energy is listed among removals from the All Ordinaries index effective after trading on 19 March 2010. This is an index change, not a company announcement.
3 Mar 2010investor presentation● Neutral
March investor presentation restating known facts: Galoc over 4m bbl produced, 10,000-11,000 bopd, Edirne start-up around end Q1 2010, SC55 seismic under way. Market cap A$107m at 10c; cash A$18m at 31 December, no debt.
15 Feb 2010drilling progress report● Neutral
Phase 2 Edirne drilling covers up to seven shallow gas wells (35% interest). Yolboyu-1 spudded 12 February, a higher-risk 2,000m step-out with up to 7 Bcf potential that would need extra infrastructure. Other wells target modest volumes.
10 Feb 2010drilling scheduled● Neutral
Otto begins a roughly 1,800 km2 3D seismic survey in SC55 on 10 February, expected to take about two months. This is larger than the 590 km2 survey planned in December, and fits with the BHP Billiton seismic agreement.
28 Jan 2010drilling result▲ Good
Kumluk-1 in the Edirne licence reached 550m, with 9m of net gas pay over three intervals, in line with pre-drill estimates. Cased as a potential producer. Extends Edirne's run of drilling success; Kartal-1 is next.
22 Jan 2010other● Neutral
Notice of a Boardroom Radio audio interview with CEO Paul Moore on the December quarterly results. No new information in the announcement itself.
21 Jan 2010quarterly activities report▲ Good
December quarter: Galoc gross output 747,767 bbl, cumulative 3.6m bbl; receipts from GPC US$10.355m; cash A$18.763m, debt free. Otto has exited Santa Rosa, Argentina, for nil consideration. Edirne first gas expected towards end of Q1 2010.
15 Jan 2010farm in farm out agreement▲ GoodMajor
BHP Billiton will fund 1,000-2,000 km2 of 3D seismic in SC55 in return for an option to earn 60% by funding two deepwater wells and refunding Otto's past costs. Subject to formal agreements and approvals. Advances the Philippine farm-down effort.
15 Dec 2009material agreement▲ GoodMajor
Edirne JV signed a five-year gas sales agreement with AKSA for all Edirne gas, at a 15% discount to the BOTAS industrial tariff (Otto expects US$7-8/GJ). Gross 2P+2C about 8.5 Bcf (Otto 3 Bcf), initial 10-14 mmscf/d from early 2010. Resolves the pending sales agreement.
9 Dec 2009drilling scheduled▲ Good
Otto will acquire 590 km2 of 3D seismic in the southwest of SC55 (Otto 85%, operator), starting with the vessel arriving 14 December. It meets the current work commitment and follows the DoE-extended SC55 programme.
8 Dec 2009investor presentation● Neutral
December investor presentation repeating known facts: market cap about A$75m at 7c, cash A$11m, no debt. Molton and Santo each hold 19.7%. 2.5m performance shares convert if Edirne gas sales occur by 30 June 2010.
1 Dec 2009security holder rights change● Neutral
8,000,000 unlisted options (34c strike) expired on 30 November 2009 and were cancelled. Administrative; no cash or share impact.
18 Nov 2009investor presentation● Neutral
AGM presentation by CEO Paul Moore, largely restating known points: Galoc about 11,500 bopd and 3m bbl produced, Phase 2 start-up targeted first half 2011, Turkey plant under construction, farm-downs sought. Cash A$10.55m at 30 Sept, about 1.07bn shares.
10 Nov 2009production update▲ Good
Galoc production resumed on 9 November after the October suspension caused by delayed offloading. Offloading began once the faulty export hose was replaced. Resolves the pause flagged on 27 October; Otto's indirect interest is 18.78%.
30 Oct 2009quarterly activities report● Neutral
September quarter: Galoc uptime about 99% at roughly 11,000 barrels a day, Otto received A$3.338m from GPC, and cash was A$10.554m. Otto will not continue exploring Santa Rosa, Edirne gas plant start-up is expected Q1 2010, and Matthew Allen is the new CFO.
27 Oct 2009production update▼ Bad
Galoc production was temporarily suspended because the FPSO's storage is full and a faulty export hose has blocked offloading. A replacement hose is coming from Singapore, with offloading expected the week of 9 November. Interrupts the run of steady output since August.
19 Oct 2009annual report● Neutral
Annual report letters say Otto expects to exit Argentina, is still deciding on Italy, and CEO Paul Moore will focus on onshore growth, farming down Philippine licences and cost control. Raised about A$31.5m during the year; cash A$13m at 30 June.
14 Oct 2009resource reserve update▲ GoodMajor
Otto estimates Galoc gross 2P reserves at 8.4m barrels (Otto share 1.46m) at 30 June 2009, with 6m barrels gross 2C contingent. First-year output topped 2.9m barrels and Otto received its first GPC distribution of US$2.16m in August. Resolves the pending reserves reassessment.
14 Oct 2009resource reserve update▼ Bad
Nido, a Galoc partner, says it has neither reviewed nor supports Otto's reserve estimates, which it notes are Otto's own and not independently reviewed. Nido is running its own independent review, due to conclude in January 2010.
24 Sept 2009admin correction● Neutral
Re-lodged annual financial report with a typographical correction to the net loss figure in the auditor's report, so it matches the accounts. The company states the financial report itself is unchanged.
23 Sept 2009annual report▼ Bad
Annual financial report for the year to 30 June 2009 shows a net loss of A$57.3m (2008: A$10.7m loss), no dividend, and Paul Moore as CEO since 1 July. Galoc has produced over 2.2m barrels since first oil on 9 October 2008.
4 Sept 2009other▼ Bad
S&P announced Otto Energy will be removed from the S&P/ASX 300 index effective from the close of trade on 18 September 2009. This is an index change, not a company announcement, and carries no operational news.
17 Aug 2009regulatory community update▲ Good
Philippine DoE approved revised work programmes: SC55 has until August 2010 for seismic and August 2011 for one deep-water well; SC50 needs two wells by March 2011; SC51 one well before December 2010. Extends the deadlines Otto had been negotiating.
13 Aug 2009production update▲ GoodMajor
Galoc restarted production on 13 August after about seven weeks shut in, resolving the June weather-disconnection and riser damage. Output is expected to settle at the pre-shutdown 11,000 barrels a day, restoring cash flow to Otto's 18.77% indirect interest.
10 Aug 2009production update● Neutral
Galoc repairs continue after the late-June weather disconnection; conditions have improved and the remaining work is expected to take 1-2 weeks, subject to weather. Production has been shut in since June; Otto's indirect interest is 18.77%.
10 Aug 2009production update● Neutral
Nido re-releases the operator's 7 August update on the Galoc shut-in: the riser section is to be replaced and remaining tasks should take 1-2 weeks, weather permitting. Nothing new beyond Otto's own release of the same day.
31 July 2009quarterly activities report● Neutral
June quarter: Galoc gross output 957,789 barrels, Otto debt-free with about A$13m cash, and Kirmizihoyuk-1 lifted Turkey to seven gas discoveries. Galoc is shut in awaiting mooring repairs. DOE extended SC50 drilling commitment to March 2011.
28 July 2009drilling result▼ BadMajor
The Santa Rosa well in Argentina (Otto 32.5%) reached 1,270m with no hydrocarbons; target reservoirs were absent at this crest location. It will be abandoned as a dry hole. Second dry hole in two months, ending non-operated drilling.
24 July 2009production update● Neutral
Nido re-releases the operator's update that Galoc reinstatement is continuing, delayed by sea conditions and equipment downtime. The deformed riser section is being changed out. Nothing new beyond Otto's own release.