24 July 2009admin correction● Neutral
9,000,000 shares will be released from voluntary escrow on 1 August 2009. Total quoted shares do not change. Administrative notice only.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
24 July 2009production update▼ Bad
Galoc remains shut in; mooring and riser repair is delayed by rough seas and equipment downtime, with the deformed riser section to be replaced. Otto holds 31.38% of GPC, which has a 59.84% interest. No restart date given.
22 July 2009well test result▼ Bad
Kuzey Ikihoyuk-1 in Turkey flowed only 0.12 MMscf/d combined with water and was suspended, ending Phase I drilling in Turkey. Santa Rosa well in Argentina spudded 15 July, drilling at 580m.
15 July 2009drilling progress report● Neutral
Kuzey Ikihoyuk-1 in Turkey reached 387m and found several zones of interest, with testing to follow. Galoc repairs are further delayed by poor weather. Santa Rosa well is expected to spud this week.
9 July 2009asset acquisition disposition▲ Good
Galoc Production Company agreed to buy an extra 1.55% of the Galoc field, lifting its interest from 58.29% to 59.84% and Otto's indirect interest by 0.49% to 18.77%. Subject to formal agreements. Rubicon has mobilised equipment to reinstate production.
2 July 2009drilling spud● Neutral
Kuzey Ikihoyuk-1 spudded 1 July in the Edirne Licence (Otto 35%), exploring a different structure to earlier wells, to about 450m. Santa Rosa rig mobilising, spud expected July. Continues the Turkey and Argentina drilling programs.
1 July 2009production update● Neutral
Partner Nido re-releases the operator's notice of the delayed Galoc reconnection caused by mooring and riser damage. Nothing new beyond Otto's own release of the same day.
1 July 2009production update▼ BadMajor
Galoc production remains shut after the late-June weather disconnection because the mooring and riser system is misaligned and deformed. A construction vessel is on site and the repair scope and duration are unknown. Continues the June shut-in.
25 June 2009material agreement▲ GoodMajor
Galoc commerciality declared after the extended test; Galoc project debt (over US$40m) and Otto's shareholder and director loans are fully repaid, leaving Otto debt-free with about A$13m cash. Otto expects regular dividends from GPC. Gazzata-1 confirmed dry; Santa Rosa spud now July; FPSO disconnected again for weather.
22 June 2009director officer appointment● NeutralMajor
Paul Moore, ex-Woodside, Santos and Fletcher Challenge executive, becomes CEO on 1 July 2009, replacing Alex Parks. He receives 7.5m options (12c, expiring 30 June 2014) and will subscribe for 1.25m shares at 8c ($100,000).
16 June 2009drilling result▼ BadMajor
Gazzata-1 in Italy's Po Valley, drilled to 2,840m, showed no commercial gas and will be abandoned as a dry hole. Otto was funding it to earn 50%. Separately, Ikihoyuk-2 in Turkey flowed up to 4.95 MMscf/d, a high rate for the licence.
10 June 2009well test result▲ Good
Kirmizihoyuk-1 upper zones tested, bringing combined rate to about 4.8 MMscf/d; the well will be completed as a future producer. Gazzata-1 was at about 2,219m heading to 2,300m minimum. Santa Rosa spud still late June.
3 June 2009well test result▲ Good
Kirmizihoyuk-1 lower zones flowed up to 1.5 MMscf/d, about 3 MMscf/d combined, with some water; upper zones still to test. Gazzata-1 in Italy reached 1,764m and is casing before drilling to target depth.
27 May 2009drilling progress report● Neutral
Kirmizihoyuk-1 in Turkey (Otto 35%) reached 500m; ambiguous deeper zones tested partly gas-bearing at up to 0.71 MMscf/d with water. Main zones to be flow tested. Gazzata-1 in Italy was drilling at 586m. Santa Rosa spud expected mid/late June.
20 May 2009drilling spud▲ GoodMajor
Gazzata-1 in Italy's Po Valley spudded on 19 May, targeting over 100 Bcf of prospective gas at about 2,100m. Otto earns 50% by funding it. Kirmizihoyuk-1 in Turkey logged about 15m of gas pay, to be tested. Argentina drilling is due mid June.
14 May 2009capital raising announcement▲ Good
Otto issued 324.8m shares under the entitlement issue. Shareholders got their full entitlement but not extra shares applied for, and the shortfall went to sub-underwriters. Total raised about A$21.2m, to fund wells, repay loans and working capital. Completes the raising.
What it means for a shareholder
325m new shares at about A$0.0653 to raise about A$21.2m. That's 25% dilution: every existing holder's slice gets 25% smaller. If you held A$1,000 of shares (15,321 at the issue price), your slice goes from 0.00155% to 0.00116% of the company. To keep it you'd need 5,019 more shares - about A$328 at the issue price.
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13 May 2009production update▲ Good
Partner Nido re-releases the operator's news that Galoc restarted on 12 May after about five days off for the typhoon, the first disconnect-and-reconnect since the mooring upgrades. Little new for Otto beyond its own release.
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.
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.
30 Apr 2009quarterly activities report● Neutral
March quarter: Galoc gross output 494,871 barrels, Otto's share of Galoc debt down to US$4.9m, cash about A$8.1m. The BHP SC55 deal lapsed; Edirne first gas expected Q4 2009; Catalca and Ortakoy licences relinquished. Gazzata-1 spud expected mid May.
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.