30 Nov 2023other● Neutral
The chairman's AGM address says the sale process has proven more difficult and protracted than expected. He restates the up to A$40.0m (A$0.008 per share) return and a 2023 loss of US$7.0m caused by the GC 21 impairment.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
30 Nov 2023investor presentation● Neutral
AGM CEO presentation largely repeats known facts: 4,795m shares, cash US$32.3m, no debt, market cap A$81.5m at A$0.017, and the planned A$40.0m capital return. No new announcements in the readable text.
30 Oct 2023quarterly activities report● Neutral
September quarter production fell 12% to 1,768 boe/d, mainly from a three-week SM 71 pipeline shut-in; revenue US$6.3m. Cash rose to US$32.3m, helped by the US$5.8m insurance payment. Macquarie facility terminated; the A$40m capital return is restated.
27 Oct 2023other● Neutral
Appendix 4G corporate governance checklist for FY23, lodged with the annual report. Administrative filing with no new operational or financial information.
27 Oct 2023capital raising announcement▲ GoodMajor
The board will return up to A$40.0m (A$0.008 per share) to shareholders in early 2024, from existing cash, subject to approval at the 30 November AGM. Described as the first step of the strategic review; a sale is still being assessed.
27 Oct 2023annual report● Neutral
Otto's 2023 Annual Report repeats the FY23 results and reserves already released. It says the strategic review continues and a transaction will be recommended only on terms in shareholders' best interests. No new figures in the readable text.
28 Sept 2023annual report▼ BadMajor
FY23 net loss after tax was US$7.0m (FY22: US$15.5m profit), after a US$19.8m non-cash GC 21 impairment. Revenue was US$33.4m, down from US$40.6m. Cash US$25.9m, debt-free, hedges closed. Strategic review continues with negotiations ongoing.
30 Aug 2023resource reserve update▼ BadMajor
At 30 June 2023, net 1P reserves fell 35% to 2.4 MMboe, 2P fell 18% to 4.8 MMboe and 3P fell 10% to 7.0 MMboe, mainly from production and GC 21 downgrades. Resources rose 257% to 8.7 MMboe, driven by ST 48.
14 Aug 2023other▲ GoodMajor
Otto received US$5.8m as an interim payment on its insurance claim for damage during the September 2022 GC 21 recompletion. The maximum claim is US$8.7m net to Otto; further payments are not assured. This partly offsets the GC 21 cost overruns.
31 July 2023quarterly activities report● Neutral
June quarter production fell 7% to 2,010 boe/d and revenue fell to US$7.0m (from US$8.3m). Cash US$25.9m, no debt; the undrawn US$30m facility is being terminated. Strategic review still draws significant interest; SM 71 F3 water cut reached about 78%.
20 June 2023director officer appointment● NeutralMajor
With the strategic review well progressed, Mike Utsler's contract was terminated by mutual agreement. Steve Herod, a Petrohawk co-founder, becomes CEO, John Jetter becomes Non-Executive Chairman and Paul Senycia deputy. Herod has a bonus of up to US$300,000 for a liquidity event by 1 March 2024.
23 May 2023well test result▲ GoodMajor
The GC 21 intervention opened the lower DTR-10 sand, and the well now flows about 1,400 bbl/d oil and 1,000 Mscf/d gas, up from 800 bbl/d oil from the upper zone alone. Cost was US$2.1m net to Otto, below the earlier US$2.8m estimate.
28 Apr 2023quarterly activities report▼ Bad
March quarter production fell 15% to 2,165 boe/d and revenue fell 36% to US$8.3m, on lower output and a 23% weighted average drop in prices. Cash US$24.1m, no debt. Strategic review draws significant interest; GC 21 started producing in late March.
26 Apr 2023production update▼ BadMajor
GC 21 began flowing 22 March at about 800 bbl/d oil and 400 Mscf/d gas, but only the upper DTR-10 sand is contributing. A further intervention is planned at US$2.8m net to Otto, and FY23 production guidance is cut to 0.75-0.85 MMboe.
29 Mar 2023other● NeutralMajor
Otto launched a formal strategic options review, including a possible partial or full sale of the company or assets, with Seaport Global and Adelaide Equity Partners advising. The board says the share price does not reflect value; no timetable or assurance of a deal.
15 Mar 2023drilling result▲ Good
The GC 21 DTR-10 recompletion is finished and the rig released, within the previously advised cost range. Both upper and lower zones are to produce, with a sustained rate expected early in the June quarter. This resolves the delay and cost blowout thread.
13 Mar 2023half year report▲ Good
Half-year to December 2022: revenue up 18% to US$21.4m, NPAT up 7% to US$11.9m, production 2,526 boe/d. Cash US$25.5m, debt-free; the US$30m facility remains undrawn. FY23 production guidance was unchanged at 0.90-1.05 MMboe.
9 Feb 2023drilling progress report● Neutral
The rig returned to Green Canyon 21 on 5 February to restart the DTR-10 recompletion; first production still expected in March quarter 2023. SM 71's F3 well water cut rose to 28% in the December quarter, with oil declining.
31 Jan 2023quarterly activities report● Neutral
December quarter production was steady at 2,541 boe/d, the first full quarter from the three new fields, with revenue down 18% to US$12.9m. Cash US$25.5m, no debt. SM 71 was lower after downtime; Lightning Green #3 still in preparation.
17 Nov 2022investor presentation● Neutral
AGM CEO presentation largely repeating known facts: 4,795m shares, zero debt, cash US$25.0m at 31 October 2022, and market cap A$67.1m at A$0.014. Register is 49% corporate/strategic and 47% retail. No new announcements in the readable text.
17 Nov 2022other● Neutral
Executive Chairman's AGM address: highlights record FY22 results, debt cut 80% to US$2.3m and zero by 30 September 2022, and a focus on acquisitions and prospects. Repeats known facts; no new figures or decisions.
14 Nov 2022investor presentation● Neutral
Company overview presentation repeating known facts: seven assets, 4.795b shares, cash US$24.9m, zero debt, market cap A$57.5m, and reserves of 3.72 MMboe 1P and 5.83 2P at 30 June 2022. No new announcements.
9 Nov 2022agm notice● Neutral
Otto withdrew Resolution 4, the proposed replacement constitution, from the 17 November 2022 AGM, citing recent Australian regulatory changes. It may return at a later meeting.
31 Oct 2022quarterly activities report▲ Good
September quarter production rose 19-20% to 2,511 boe/d as Mosquito Bay West, Oyster Bayou South and Vick #1 started. Revenue fell about 7% to US$13.9m on softer prices. Cash US$24.9m, no debt; GC21 now expected Q1 2023.
17 Oct 2022other● Neutral
Appendix 4G governance checklist for FY22, stating the corporate governance statement is on Otto's website as at 14 October 2022. Administrative filing with no new substance.
17 Oct 2022annual report● Neutral
2022 Annual Report covering the year to 30 June 2022, repeating the results, reserves and three-pillar strategy already released. Lists six fields with interests of 10.3% to 50% WI. No new figures identified in the readable text.
14 Oct 2022production update▼ BadMajor
GC21 recompletion suspended after loop currents and Hurricane Ian; first production slips to Q1 2023 and Otto's cost rises to US$12-16m from US$5.9m. Offsetting: Oyster Bayou South oil lifted to 1,100 bbl/d, Vick #1 started 26 September, and ST 48 awarded to Otto.
4 Oct 2022investor presentation● Neutral
FY22 results presentation repeating known figures: 4,795m shares, cash US$24.9m, zero debt at 30 September 2022, market cap A$57.5m. No new announcements identified in the readable text.
3 Oct 2022debt financing▲ GoodMajor
Otto made its final repayment and is debt-free, with hedges rolled off. Macquarie facility extended from November 2022 to 31 December 2023, with US$10m Tranche A-2 undrawn and US$20m Tranche B available. Cash US$24.9m at 30 September.
28 Sept 2022other● Neutral
Notice of an investor call on the FY22 results on 4 October 2022, hosted by Mike Utsler and Sergio Castro. No new information about the business.