Past year: ▲ 50%(0.40c – 0.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
15 Apr 2008drilling progress report▲ Good
Kuzey Arpaci-1 has become the second well drilled, swapped ahead of Ortakci-1 because of heavy rain. It shows excellent gas sands, with the highest gas readings of the five wells drilled so far. Drilling paused at 460m with a rig fuel pump fault.
8 Apr 2008drilling scheduled● Neutral
Incremental's notice that Ortakci-1, second well of the five-well Edirne campaign, is due to spud the next day to 400m. Otto's own release of the same content follows; nothing new for Otto's 35%.
8 Apr 2008drilling spud● Neutral
Otto's release that the second Edirne well is spudding, with Incremental's notice attached: Ortakci-1, to 400m. The campaign targets 10-20 bcf combined. Later announcements show the well order was changed, so this was not in fact the next well drilled.
7 Apr 2008investor presentation● Neutral
Presentation at PESA Deal Day promoting SC51 and SC55 to potential farm-in partners. CEO says there are numerous expressions of interest, with deals aimed for the next few months. Marantao in SC55 is quoted at mean 4 Tcf gas or 3.5 billion barrels oil; one well planned by September 2009.
4 Apr 2008drilling result▲ GoodMajor
Ikihoyuk-1, first of five 2008 Edirne wells, found gas intervals totalling about 28m of pay between 323m and 468m, well above expectations. It is the 4th well Otto has drilled there since 2004, all gas discoveries. Flow testing comes after the campaign (Otto 35%).
2 Apr 2008farm in farm out completion▲ GoodMajor
Otto confirms it will earn the full 50% of the Bastiglia-Cento permits in Italy, because Deltana did not exercise its 15% option by 31 March 2008. Gazzata-1, targeting over 100 bscf, is planned around September 2008.
28 Mar 2008investor presentation▲ Good
Otto update: Galoc first oil is due late April, with net revenue estimated at about US$12m a month during cost recovery, then ~US$5m. Otto is seeking farm-in partners for SC51 and SC55 drilling in 2009, and plans up to 10 wells in 2008-2012.
28 Mar 2008joint venture update● Neutral
Galoc subsea installation is finished; the FPSO is at Batangas for final work before hook-up. First oil is expected by late April 2008, with the first cargo anticipated in May.
28 Mar 2008asset acquisition disposition● Neutral
Incremental bought a further 10% of Edirne from a Turkish partner for US$1.5m, taking it to 55%. Otto's 35% is unchanged. This is Incremental's deal, not Otto's.
27 Mar 2008drilling spud▲ GoodMajor
Ikihoyuk-1, the first of five 2008 Edirne gas wells, has spudded. Planned to 520m depth over about 10 days, it targets shallow gas. The programme targets 10-20 bcf combined, with production aimed for mid 2009 (Otto 35%).
27 Mar 2008drilling spud● Neutral
Re-release of Incremental's announcement that Ikihoyuk-1, first of five Edirne wells, has spudded to 520m. Same content as Otto's release; nothing new.
14 Mar 2008half year report▲ Good
Half-year to 31 December 2007 shows a profit of $91,361 versus a $368,894 loss a year earlier. Otto raised $75.7m net from equity, mostly for Galoc. Galoc production is due late April 2008; no dividend recommended.
13 Mar 2008other● Neutral
Administrative notice: 16,300,000 shares are released from voluntary escrow on 13 March 2008. No other substance.
26 Feb 2008flow test result▲ GoodMajor
Galoc-4 flowed at a stabilised ~6,150 bopd, the better of the two wells, both at the high end of pre-drill expectations. Weather delays should cost Otto under US$2 million. First commercial oil remains April 2008.
25 Feb 2008drilling progress report● Neutral
Galoc-4 is open for clean-up flow to surface, to confirm well integrity and prepare for FPSO production in April. Full results are promised the next day.
21 Feb 2008flow test result▲ GoodMajor
Galoc-3 flowed dry oil at a stabilised ~5,200 bopd, limited by rig facilities, in line with expectations. Gross field output is expected over 15,000 bopd (Otto ~3,000 bopd) from first oil in April. The FPSO now arrives in March.
20 Feb 2008drilling progress report● Neutral
Galoc-3 is opened for clean-up flow to the surface to check well integrity and take oil samples ahead of FPSO production in April. Otto will report further material developments. Results follow in the next announcement.
14 Jan 2008drilling scheduled● Neutral
Re-release of the Incremental announcement: five Edirne wells with the first spud in March 2008, all on 3D-seismic targets. Estimated 10-20 Bcf in the 3D area, production targeted early 2009. Nothing new beyond the previous item.
14 Jan 2008drilling scheduled▲ Good
Edirne partners confirm five shallow gas wells, first spud March 2008, now based entirely on the 2007 3D seismic. Four locations are approved; the fifth awaits final data. Discovered gas plus prospects in the 3D area are estimated at 10-20 Bcf, with production targeted early 2009.
8 Jan 2008drilling result▲ Good
Both Galoc development wells are now drilled; Galoc-3 reached its 4,185m target depth. Otto's CEO says early data suggests both beat pre-drill expectations, to be confirmed by clean-up flows this month. First oil is now expected late March 2008.
17 Dec 2007farm in farm out completion▲ GoodMajor
The Galoc deal is complete: Otto now holds an 18.28% indirect interest through 31.38% of GPC, with Vitol owning the other 68.62%. The second horizontal well is drilling and the FPSO arrives in February. Full production is expected April 2008 at 15-18,000 bopd.
12 Dec 2007director officer appointment▲ Good
John Jetter, a former JPMorgan Germany and Austria head, joins as non-executive director. Otto says his international finance and M&A contacts suit its growth plans and its aim of an international institutional shareholder base.
7 Dec 2007farm in farm out agreement▲ GoodMajor
Otto will earn 50% of the Bastiglia-Cento permits in Italy's Po Valley from operator Ascent Resources. It pays about A$3.65m for seismic plus 100% of the roughly A$6m first well, Gazzata-1, planned around September 2008, targeting over 100 bscf. Deltana holds an option over 15%.
9 Nov 2007asset acquisition disposition● Neutral
Otto says the Galoc purchase remains on track to complete 14 December 2007. Shareholders vote on the remaining 195m placement shares (A$58.5m at 30c) at the 30 November AGM. Until completion Otto will not report on Galoc operations.
7 Nov 2007other● Neutral
CEO interview on the Galoc acquisition repeats known facts: 23.4 MMbbl 2P reserves, about US$9 per barrel paid, first oil April 2008. It adds roughly A$62m of the A$68m raised goes to the deal, and 3P of 41.9 MMbbl.
29 Oct 2007asset acquisition disposition▲ GoodMajor
Otto agrees to buy an 18.28% indirect stake in the Galoc oil field, Philippines, via 31.38% of operator GPC. Gross 2P reserves are 23.4 MMbbl, with first oil expected April 2008. Funded by a 226m-share placement at 30c ($67.8m); completion needs shareholder approval.
23 Oct 2007annual report● Neutral
The 2007 annual report repeats the year's results: roughly 114.8m shares issued, 172.9m shares on issue, and market value of $55.3m at year end. The chairman calls Argentina licence progress disappointing. It adds nothing new beyond the earlier financial report.
27 Sept 2007regulatory community update▲ GoodMajor
NorAsian, with partner TransAsia, is ranked preferred bidder for Philippines Area 8, a 7,440 sq km block between the SC51 sub-blocks. NorAsian would hold 70%, as operator, and TransAsia 30%. Seven-year term, one firm well in year 7; terms still to be finalised.
21 Sept 2007resource reserve update▲ GoodMajor
Otto's first volume estimate for the Marantao prospect in SC55 (Otto 85%) gives mean prospective resources of 1,812 bcf gas plus 567 MMbbl oil, or 1,323 MMbbl if all oil. These are unproven estimates, not discoveries. Otto aims to farm down in early 2008.
19 Sept 2007drilling progress report▲ Good
The 149 sq km Edirne 3D seismic survey finished 17 September 2007, two weeks early and under budget. Processed data is due early December. Otto (35%) and Incremental still plan about five wells from December 2007, completing the survey flagged in August.
