Past year: ▲ 50%(0.40c – 0.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
25 Jan 2019drilling progress report● Neutral
Lightning (Green #1) has set 9⅝" casing at 11,580 ft and is drilling ahead at 12,023 ft toward a 15,500 ft target. Chance of success is 45%, with 4.57 MMboe gross mean prospective resource. Otto's 37.5% share is 1.71 MMboe. No result yet.
24 Jan 2019drilling progress report▲ Good
Winx-1 ice road is about 85% complete and the Nordic Rig #3 passed a third-party inspection with only minor issues. Rig mobilisation is due in roughly seven days and spud remains scheduled for mid-late February 2019. Preparation is on plan.
4 Dec 2018drilling spud● NeutralMajor
Lightning (Green #1, Matagorda County, Texas), the second Hilcorp program well, has started drilling. It targets 15,500 ft, takes about 60 days, with 45% chance of success and 4.57 MMboe gross mean prospective resource. Otto's cost is about US$4.97m for a 37.5% interest.
15 Oct 2018drilling result▼ BadMajor
Big Tex, the first Hilcorp program well, reached 13,722 ft MD. Despite hydrocarbon indications on mud logs, there was insufficient producible reservoir, so it is being plugged and abandoned as sub-commercial. Second dry hole in a week; next Hilcorp well, Lightning, is due to spud in November.
11 Oct 2018drilling result▼ BadMajor
Weiss-Adler No. 1 at Bivouac Peak East reached 17,766 ft and was deemed uncommercial: a water-bearing sand and tight gas sands with under 5 net feet of hydrocarbons. It is being plugged and abandoned. Cost is under US$7.5m versus US$10.8m budget. Otto holds 40% and is in a trading halt.
5 Oct 2018drilling progress report● Neutral
Byron reports Weiss-Adler No. 1 drilling ahead at 14,856 ft MD after cementing a 9 5/8-inch liner at 14,422 ft. Target is 18,000 ft TVD. Routine progress, no result yet.
24 Sept 2018drilling progress report● Neutral
Byron reports Weiss-Adler No. 1 drilling ahead at 13,918 ft MD, with 11 7/8-inch casing cemented at 11,890 ft. Target is 18,000 ft TVD. Otto holds 40%. Routine progress, no result yet.
4 Sept 2018drilling progress report● Neutral
Operator Byron reports Weiss-Adler No. 1 at Bivouac Peak East drilling ahead at 4,900 ft after cementing 16-inch casing at 4,040 ft. Target remains 18,000 ft TVD, about 75 days total. Routine progress, no result yet.
30 Aug 2018drilling spud● NeutralMajor
Drilling began on Big Tex, the first of eight Hilcorp program wells, to 12,700 ft TVD in about 55 days. Otto earns 37.5% by paying 50% of drilling costs, about US$4.23m. Company-assessed chance of success is 54%; mean gross prospective resource 6.5 MMboe.
27 Aug 2018drilling spud● NeutralMajor
Otto announced the Bivouac Peak East well (Weiss-Adler No. 1) began drilling 25 August, 40% interest, 18,000 ft TVD, about 75 days. Otto pays up to US$5.33m of the US$10.8m cost. Resolves the open spud thread; result awaited.
27 Aug 2018drilling spud● Neutral
Operator Byron reports drilling began 25 August on the Weiss-Adler No. 1 well at Bivouac Peak East, targeting 18,000 ft TVD and 32.2 MMboe gross prospective resource, about 75 days. Duplicates Otto's own announcement of the same well.
6 Aug 2018resource reserve update▲ GoodMajor
Independent report lifts SM 71 gross 2P reserves by 10.6 MMboe to 16.2 MMboe; Otto's net 2P is 6.6 MMboe and 1P 2.5 MMboe, almost triple 2017. Driven by D5 sand performance. Delivers the reserves uplift Otto had flagged; Big Tex and Bivouac Peak wells due this month.
31 July 2018farm in farm out agreement▲ GoodMajor
Otto farms into an eight-well Gulf Coast program with operator Hilcorp, earning 37.5% by paying 50% of costs, about US$37.5m, with US$4m payable immediately. It will fund this with a roughly A$20m placement and entitlement offer. A major expansion of Otto's drilling exposure.
30 July 2018farm in farm out completion▲ GoodMajor
Otto signed definitive agreements lifting its Alaska Western Blocks interest from 10.8% to 22.5%, in return for drilling a well before 30 May 2019. Prospect is 400 MMbbl gross, with 25-30% chance of success; drilling planned Q1 2019. Completes the 25 June term sheet.
30 July 2018farm in farm out completion● Neutral
Partner Red Emperor announces the same Alaska Western Blocks definitive agreements, holding 31.5% and having paid its bond and cash shares. Confirms Otto's terms; no new information for Otto.
9 July 2018drilling scheduled▲ GoodMajor
Otto elected to join the Bivouac Peak East gas/condensate well at a 40% interest (down from 45%), paying up to US$5.33m of the US$10.8m cost. Funded from SM 71 cash flow, which Otto says exceeds US$3m a month. Resolves the 9 July election.
9 July 2018drilling scheduled● Neutral
Byron says all partners, including Otto, have elected into the Bivouac Peak East well (18,000 ft TVD), spud second half of August, about 75 days. Otto's interest is restructured from 45% to 40%; well cost estimated at US$10.8m.
28 June 2018farm in farm out agreement● Neutral
Metgasco, holding an option over 10% of Bivouac Peak, elected to join the first well, expected to spud in August to 18,000 ft. This is a partner's election, not Otto's; Otto's own election remains outstanding.
25 June 2018farm in farm out agreement● Neutral
Partner 88 Energy announces the same Alaska Western Blocks term sheet, taking 36% and managing drilling. It cites Otto's 400 MMbbl gross prospect with a 25-30% chance of success. Mostly repeats Otto's release.
25 June 2018farm in farm out agreement● Neutral
Partner Red Emperor announces the same Alaska Western Blocks deal, taking 31.5% with a US$1.05m bond share. It also announces a new CEO. Confirms the terms of Otto's release; no new information for Otto.
25 June 2018farm in farm out agreement▲ GoodMajor
Otto signed a binding term sheet with 88 Energy and Red Emperor to take over most of Great Bear's Alaska Western Blocks and drill a 400 MMbbl gross prospect by May 2019. Otto's interest rises from 10.8% to 22.5%; its share of the US$3m bond is US$750,000. Definitive agreements are due within 30 days.
19 Apr 2018farm in farm out completion● NeutralMajor
Red Emperor, an SC55 partner, says the Philippine regulator approved transfer of Otto's SC55 interest to its partners. This resolves the pending assignment and completes Otto's Philippines exit; Red Emperor's stake rises to 37.5%. Text does not state any payment to Otto.
22 Mar 2018farm in farm out agreement▲ GoodMajor
Partner Byron was apparent high bidder at US$1.101m for VR 232, next to SM 71. Otto may take 50% (43.75% NRI) for US$734,000, or 50% of SM 74 if the bid is rejected. This follows the earlier rejection, and the BOEM review can take 90 days.
16 Feb 2018resource reserve update▲ Good
Byron says its 30 June 2018 reserves report, due in the September 2018 quarter, should show higher 1P, 2P and 3P reserves from the F2 and F3 wells. It expects most of the B65 sand to move from prospective resource to reserves. No figures given; Otto's reserves not stated.
29 Jan 2018drilling result▲ GoodMajor
SM 71 F3 reached 7,717 ft in 22 days, logging 175 ft net oil pay in the D5 sand, 45 ft thicker than F2, and extending the oil column 150 ft down dip. F2's D5 pay was revised up from 117 to 132 ft. A D5 reserve upgrade is expected; production is targeted for March 2018.
22 Jan 2018drilling progress report● Neutral
SM 71 F3 is drilling ahead at 4,969 ft after casing was set at 3,539 ft, on plan to reach 7,624 ft by early February. First production from all three wells is still expected early March 2018. No new result.
10 Jan 2018drilling spud▲ Good
Operator Byron reports the SM 71 F3 development well has spudded and was at 668 ft on 9 January, to give a second D5 take point. Pipeline tie-ins to sales lines are complete. First production from all three wells is expected early March 2018.
10 Jan 2018drilling spud● Neutral
Otto repeats operator Byron's report that SM 71 F3 spudded and was at 668 ft on 9 January, to be drilled to 7,624 ft by early February as a second D5 take point. First production from all three wells is still expected early March 2018.
27 Dec 2017drilling result▲ GoodMajor
SM 71 F2 found oil in four sands, with preliminary net pay of 190 ft, including B65 (52 ft) and D5 (117 ft). B65 moves from prospective resource towards reserves, with a significant reserves uplift expected. Drill pipe stuck below the D5 at the time.
27 Dec 2017drilling result▲ Good
Operator Byron reports F2 hit oil in four sands, with preliminary net pay of 190 ft including 52 ft in B65 and 117 ft in D5. Drill pipe became stuck below the D5 and was being freed. Same result as Otto's release.
