Past year: ▲ 50%(0.40c – 0.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
29 Oct 2008quarterly activities report● Neutral
September quarter: Galoc began production on 9 October and was producing 15,000-18,000 bpd, with over 185,000 barrels produced. Philippine farm-out expressions of interest received; Gazzata-1 in Q1 2009; Argentina spud now expected by mid 2009, later than Q1 2009 previously expected.
21 Oct 2008annual report● Neutral
2008 annual report reviews the year: Galoc first oil, 304.8m shares issued raising A$93.8m, four Turkish wells all successful, and Italy and Argentina entries. Gazzata-1 is targeted for Q1 2009. Mostly restates known events.
20 Oct 2008production update▲ Good
After 11 days, both Galoc wells are producing consistent with expectations; steady output of 18,000-20,000 bbl/day is expected within days. The first crude cargo is scheduled for the first week of November.
9 Oct 2008production update▲ GoodMajor
First oil achieved at Galoc on 9 October 2008 from the Galoc-3 well; Galoc-4 follows in days. This resolves the repeated delays since May. It is Otto's first producing asset (18.28% indirect); operator expects about 20,000 bopd gross.
2 Oct 2008drilling scheduled● Neutral
Gazzata-1 in Italy's Po Valley is now planned to start in January 2009, rather than the earlier Q4 2008, using a rig that became available early. Slot swapping lets drilling follow Galoc cash flow. Otto funds the well to earn 50%; target c.2400 m.
24 Sept 2008production update● Neutral
Support vessel CSO Venturer is due at Galoc on 26 September to re-install the repaired subsea equipment, and can work in worse weather than the earlier vessel. Typhoon Hugapit is nearby; about 6-8 days remain before first oil if weather allows.
23 Sept 2008resource reserve update▲ GoodMajor
Otto's own uncertified estimate puts Edirne contingent gas at 8.5 bcf mid case (3.7-14.3 bcf), from six discoveries in six structures, plus 15.7 bcf prospective. First gas still expected mid-2009; Otto estimates US$5-10m a year net (35%).
19 Sept 2008production update● Neutral
Operator GPC says the corroded subsea fittings have been replaced and tested. Re-installation awaits suitable weather, then 6-8 days of remaining work before first oil. Another step in a repeatedly delayed start-up (Otto 18.28%).
3 Sept 2008investor presentation● Neutral
Good Oil Conference presentation repeats the portfolio: imminent Galoc production at 3000-4000 bopd net to Otto, 6-10 well campaign, farm-outs of Philippine blocks. Says Galoc is worth about US$12m a month to Otto initially. Largely known information.
1 Sept 2008investor presentation● Neutral
CEO Parks interview: Galoc first oil expected in coming weeks, building to 15,000-20,000 bopd gross. Otto expects US$50-100m over 12-18 months after repaying GPC debt, to fund 6-14 wells. Delay costs Otto little; cash called adequate. Mostly restates known plans.
29 Aug 2008production update▼ Bad
Operator GPC says the Galoc mooring and riser system is repaired and reconnected. Corrosion found in some hydraulic fittings must be replaced first, so first oil slips again to mid September, after the earlier August target (Otto 18.28%).
28 Aug 2008regulatory community update● Neutral
Seabed hazard surveys started in SC50 on 22 August, with SC51 due by mid September. They prepare for two or three wells in first half 2009: Calauit-2, Argao-1 and Bahay-1. This continues Otto's exploration plan.
13 Aug 2008contract award▲ Good
Incremental's release: plant design went to Uhde Shedden and pipeline design to Boral. The Turkish regulator confirmed the joint venture meets the requirements for a wholesale gas licence. The Botas gas price is about US$14.70/mcf. Duplicate of Otto's release.
13 Aug 2008contract award▲ GoodMajor
The Edirne partners awarded plant design to Uhde Shedden and pipeline design to Boral. Turkey's regulator advised the venture meets the wholesale gas licence requirements, a step towards selling into the national grid. First gas is expected mid 2009 (Otto 35%).
30 July 2008quarterly activities report● Neutral
June quarter report: Galoc first oil expected August; Edirne's 2008 campaign finished with four gas discoveries from four wells; Po Valley farm-in concluded with Gazzata-1 planned Q4 2008; Santa Rosa awarded; $15m raised. First gas expected mid 2009.
23 July 2008production update▼ Bad
Replacement riser parts have reached Galoc, and the mooring and riser system is being recovered for inspection before repair. Operator GPC now says first oil is anticipated in early August, with further delicate operations ahead (Otto 18.3%).
16 July 2008director officer appointment● Neutral
Richard King, formerly of Chevron's Gorgon project, Woodside and Duke Energy, joins as Commercial Manager on 28 July 2008. He will handle contracts, farm-in negotiations and debt financing, as Otto negotiates its Philippine farm-outs.
14 July 2008production update▼ Bad
Damage was found in a riser section when it was lifted, so a new section is coming from Singapore. First oil, previously early July, is now probably in August. CEO Parks calls the delay frustrating but says the financial impact on Otto is relatively minimal.
10 July 2008resource reserve update▲ GoodMajor
An independent report commissioned by operator Oromin puts Santa Rosa's unrisked prospective oil at 45-381 million barrels, most likely 131.6m. It is an unrisked, undrilled wildcat estimate. Otto's farm-in (32.48% for US$1.4m) still awaits due diligence and a JV agreement; drilling is expected Q1 2009.
7 July 2008investor presentation● Neutral
Otto restates its Philippine exploration case (20,803 sq km gross) and invites parties to farm in via purchase or carry. Site surveys are due soon, with Calauit tested in first half 2009. Mostly known information; farm-out thread continues.
7 July 2008flow test result▲ GoodMajor
Arpaci-2A's first zone (340-348m) flowed dry gas at 2.4 MMscf/d, confirming the Arpaci redrill after the plugged Arpaci-2. Two shallower pay zones are still to be tested. Surface facilities are expected by mid 2009 (Otto 35%).
7 July 2008production update▼ Bad
Galoc FPSO reconnection began 1 July, but the retrieval line was damaged in the typhoon disconnection and had to be replaced. No evidence yet of significant damage; first oil timing is still to be advised, after the earlier early-July target.
7 July 2008flow test result▲ Good
Incremental's release: Arpaci-2A's first zone (340-348m) flowed dry gas at 2.4 MMscf/d. Two shallower pay zones are to be added later, and surface facilities are targeted for mid 2009. Duplicate of Otto's release.
4 July 2008drilling result▲ Good
Incremental's release of the Arpaci-2A result: three potential gas zones between 160m and 350m, about 20m net gas sands, TD 525m. The lowermost zone (340-348m) will be flow tested shortly. Duplicate of Otto's release.
4 July 2008drilling result▲ GoodMajor
Arpaci-2A, the redrill of Arpaci-2 and last 2008 Edirne well, reached 525m and found three potential gas intervals between 160m and 350m, about 20m net gas sands on preliminary logs. Flow testing of the deepest zone is next (Otto 35%).
23 June 2008production update▼ BadMajor
Typhoon Fengshen forced the Galoc FPSO to disconnect on 20 June 2008, delaying first oil again. Reconnection is unlikely before 27 June and first oil is now expected in early July. Only minor commissioning work remains. Otto's interest is 18.3%.
16 June 2008well test result▼ Bad
Incremental's release of the Arpaci-1 test: water only from 236.8-240.9m, which it says does not affect commerciality. Rig moves to re-drill Arpaci-2 as Arpaci-2A, 30m north, the last 2008 well. Duplicate of Otto's release.
16 June 2008well test result▼ Bad
Arpaci-1, the 2006 well, produced only water on test, with no free gas, so it was not commercial. Otto says it sits at the structure's edge and does not hurt the Arpaci field's commerciality, which Arpaci-2 appraised. Arpaci-2A is next.
10 June 2008flow test result▲ Good
With added perforations, Kuzey Arpaci-1 flowed dry gas at up to 2.8 MMscf/d from several intervals between 404m and 468m, up from 1.15 MMscf/d. Arpaci-1 is tested next, then Arpaci-2 is re-drilled as Arpaci-2A (Otto 35%).
10 June 2008flow test result▲ Good
Incremental's release of the same Kuzey Arpaci-1 result: up to 2.8 MMscf/d from several intervals between 404m and 468m, with two more pay zones to add later. Duplicate of Otto's release.
