Past year: ▲ 50%(0.40c – 0.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
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.
30 Oct 2007quarterly activities report● Neutral
September 2007 quarter report recaps the Galoc deal, Area 8 preferred-bidder status, Marantao estimates and completed Edirne 3D seismic. It notes the $11m placement and the later $68m raising. Edirne drilling is now described as starting early 2008. Mostly known events.
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.
18 Sept 2007annual report▼ Bad
Audited accounts for the year to 30 June 2007 show a consolidated loss of $2,797,839, up from $1,501,857 in 2006. Directors recommend no dividend. Activities remain exploration in Turkey, the Philippines and Argentina; David Riekie resigned as a director on 18 July 2007.
7 Sept 2007security holder rights change● Neutral
15,000,000 fully paid shares will be released from voluntary escrow on 8 September 2007. Administrative notice; the text does not say who holds them.
4 Sept 2007drilling scheduled▲ Good
Incremental identifies two Edirne targets of about 30 bcf each (mean estimate) for drilling December 2007 to February 2008. The shallow wells are 700-800 m deep, with estimated dry-hole cost of US$300,000 each. This sharpens the five-well program planned for Edirne (Otto 35%).
4 Sept 2007investor presentation● Neutral
CEO presentation at the Good Oil Conference pitches Otto as a near-term producer with exploration upside, repeating known facts: Turkey first production in 2008, a five-well Edirne program from December 2007, and Calauit 2P reserves of 5.9 MMbbl.
22 Aug 2007farm in farm out completion▲ GoodMajor
The sale of 30% of Edirne and 60% of Catalca and Ortakoy to Incremental is complete, with US$5.5m received. Edirne 3D seismic is 65% done, and a five-well drilling campaign is scheduled to start December 2007. Otto says it is funded through Turkish work to first production.
31 July 2007quarterly activities report● Neutral
June 2007 quarter: Philippines seismic completed, Otto's stakes now 99%, 80% and 85% after the Vital restructure, and the 3D survey is running at Edirne with drilling planned late 2007. The $11m placement followed quarter-end; US$5.5m Turkish sale proceeds are due in September quarter. Mostly recaps known events.
25 July 2007capital raising announcement▲ GoodMajor
Otto placed 36.73 million shares at 30c to raise $11.02m, up from the 16c placements earlier in 2007. 25.9m shares ($7.77m) issue now; 10.83m ($3.25m) need shareholder approval. Funds go to Philippines seismic, rig charter payments and long-lead items.
What it means for a shareholder
36.7m new shares at A$0.300 to raise about A$11.0m. That's 18% dilution: every existing holder's slice gets 18% smaller. If you held A$1,000 of shares (3,333 at the issue price), your slice goes from 0.00193% to 0.00159% of the company. To keep it you'd need 708 more shares - about A$212 at the issue price.
Create a free account to see this worked out for your own holding.
16 July 2007other● Neutral
Otto points shareholders to another independent research report, by RM Research, posted on its website. No new information in the announcement itself.
