4 June 2008flow test result▲ Good
Incremental's release of the Kuzey Arpaci-1 test: 1.15 MMscf/d from a 5m interval. It warns the Arpaci-1 test is uncertain, but says a wet result would not affect development plans. Duplicate of Otto's release.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
4 June 2008flow test result▲ Good
Kuzey Arpaci-1 flowed dry gas at a stabilised 1.15 MMscf/d from just 5m (462.8-467.5m), the second commercial-rate flow in Edirne. More perforations will follow, then the older Arpaci-1 well is tested (Otto 35%).
27 May 2008investor presentation● Neutral
Otto's conference presentation in Sydney repeats known points: Galoc production imminent, 12 wells planned for 2008/2009, 477.3m shares on issue, about A$20m cash (30 April 2008) and about A$24m of Galoc debt. No new announcements visible.
27 May 2008flow test result▲ Good
Incremental reports Ikihoyuk-1 flowed dry gas at up to 3.8 MMscf/d from 444-453m, the best rate in the Edirne licence so far, from one of three pay zones. Kuzey Arpaci-1 and Arpaci-1 are tested next.
27 May 2008flow test result▲ Good
Otto's release on the 23-24 May test: Ikihoyuk-1 flowed dry gas at up to 3.8 MMscf/d from 444-453m, the highest rate from Otto's Edirne wells, from one of three similar zones. It supports plans for production by mid-2009 (Otto 35%).
15 May 2008drilling result● Neutral
Otto's release on Arpaci-2: gas found at about 169m, but the well was plugged for safety due to high pressure and will be re-drilled. The rig now tests earlier discoveries first. Otto holds 35% of Edirne. Same news as Incremental's release.
15 May 2008capital raising announcement● NeutralMajor
Otto placed 38.46m shares at 39c to raise $15.0m via Euroz. 14.7m shares issue now, 22.95m await FIRB approval, 0.77m to director John Jetter need shareholder approval. Funds go to Argentina, Italy, Philippine surveys and working capital until Galoc cash flow.
What it means for a shareholder
38.5m new shares at A$0.390 to raise about A$15.0m. That's 8.1% dilution: every existing holder's slice gets 8.1% smaller. If you held A$1,000 of shares (2,564 at the issue price), your slice goes from 0.000584% to 0.000537% of the company. To keep it you'd need 225 more shares - about A$88 at the issue price.
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15 May 2008drilling result● Neutral
Incremental reports Arpaci-2, the fourth Edirne well, hit gas at about 169m but with high pressure and mud losses. The well was plugged back and will be re-drilled with a changed casing and mud programme in a few weeks, after testing earlier discoveries.
13 May 2008other● Neutral
Otto is moving to a new West Perth office from 14 May 2008 and lists recent staff hires; the team now totals over 25 people. It is recruiting a Commercial Manager and a Manila Technical Director. No financial or asset change.
12 May 2008joint venture update▲ Good
The Rubicon Intrepid FPSO arrived at the Galoc field on 11 May 2008. Hook-up and commissioning are expected to take about 3 weeks before start-up. Operator GPC targets first oil by end of May, first cargo mid/late June. Otto holds 18% indirectly.
8 May 2008asset acquisition disposition▲ GoodMajor
Otto's subsidiary NorAsian is awarded Area 8 as Service Contract 69 in the Philippines for 7 years, resolving the pending award. NorAsian holds 70% as operator, TransAsia 30%. It sits between the two SC51 sub-blocks, with a minimal committed work programme.
8 May 2008admin correction● Neutral
Correction to the SC69 award announcement: the block area is 7,040 sq km, not 700 sq km as first stated. No other change.
7 May 2008drilling spud▲ Good
Incremental says the six Edirne gas wells drilled to date have found enough gas to proceed to front-end engineering design, with first gas sales expected before mid 2009. Fourth well Arpaci-2 spuds to 480m. Otto's own release follows.
7 May 2008drilling spud▲ Good
Arpaci-2, fourth of five Edirne wells, has spudded as an appraisal well up dip of the Arpaci-1 discovery, to about 480m. Attached Incremental notice says six wells so far justify front-end engineering design, with first gas before mid 2009.
5 May 2008farm in farm out completion▲ GoodMajor
The Santa Rosa licence in Argentina has been awarded for a 6-year exploration period, resolving the long wait. Otto earns 32.48% by spending US$1.4m on two onshore wells, with an option for 41.24% for a further US$897,381. Oromin is operator.
1 May 2008drilling result▲ Good
Incremental reports Ortakci-1 found about 20m of potential net gas pay between 238m and 332m, with 29% porosity. Total depth is 524m. The rig moves next to Arpaci-2. Otto's release on the same result follows.
1 May 2008drilling result▲ GoodMajor
Ortakci-1 found about 20m of net gas pay, Otto's sixth Edirne discovery from six wells since 2004. It lies in the largest mapped structure, so it improves the outlook for western Edirne. Drilling and testing should finish by end June 2008 (Otto 35%).
28 Apr 2008drilling spud● Neutral
Ortakci-1, third of five 2008 Edirne wells, has spudded to about 400m, due early next week. It lies about 8 km west of the five discoveries so far. This is the well first announced on 8 April, delayed behind Kuzey Arpaci-1.
18 Apr 2008drilling result▲ GoodMajor
Kuzey Arpaci-1, second Edirne well, found over 40m of net gas pay between 297m and 505m, more than double what was hoped. Otto calls it its fifth gas discovery in Turkey. The gas fields are close together and could share a central hub (Otto 35%).
18 Apr 2008joint venture update▼ Bad
Galoc first oil has slipped from late April to early May 2008. The FPSO is still being pre-commissioned at Batangas, nearing completion. Otto's interest remains 18.28%, held through its 31.38% of GPC.
18 Apr 2008drilling result▲ Good
Incremental reports Kuzey Arpaci-1 logged more than 40m of net gas pay between 297m and 505m, more than double the pre-drill estimate. Total depth is 540m. Otto's own release on the same result follows.
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.