21 Dec 2006drilling scheduled▲ Good
Koyustu-1 gas well in the Edirne Licence (Otto 65%) is due to spud around 25 December 2006, to about 650m, taking roughly 10 days. The rig then moves to flow-test the Bati Umur-1 discovery from December 2005.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
20 Dec 2006regulatory community update▲ Good
The Philippines energy department approved SC51 entering its second exploration phase, a one-year term from 8 January 2007. Plans include well planning for the Argao prospect (up to 270m barrels, company estimate), 250 km of seismic and the Villaba gas study.
5 Dec 2006drilling scheduled▲ Good
The 185 km Edirne seismic survey finished 24 November and found several leads. A rig is due in late December to drill Koyustu-1 beside the Bati Umur-1 gas discovery, then flow-test Bati Umur-1, which was not tested in 2005 because of winter conditions.
15 Nov 2006debt financing▲ Good
Vital says it has arranged a US$5m non-recourse loan from PetroNext to fund its Calauit farm-in share, subject to documentation. Otto says the first rig payment has been made and Vital will largely carry the remaining five instalments.
9 Nov 2006investor presentation● Neutral
AGM presentation repeating known plans for the Philippines, Turkey and Argentina. It shows 117.1m shares, about $1.5m cash and a $22m market value at 19c. Calauit oil is targeted for end 2007. No new results.
3 Nov 2006security holder rights change● Neutral
Letter to holders of 67,007,800 listed 20c options, which expire 1 December 2006 and lapse if unexercised. Quotation ends 24 November; shares last traded at 18c. No underwriting is in place. Routine notice.
2 Nov 2006director officer appointment● NeutralMajor
Alexander Parks, a petroleum engineer, is appointed CEO from 4 December 2006, and Bruce Elsholz becomes CFO. Managing director Jaap Poll moves to executive director to assist the new CEO, a change of top management as Otto moves toward production.
31 Oct 2006quarterly activities report● Neutral
September 2006 quarter report recaps the NorAsian completion, rig charter, rights issue and placement, and Turkey seismic. It adds that the 15m acquisition shares are escrowed 12 months unless Calauit 1B is re-entered. Mostly repeats known events.
18 Oct 2006regulatory community update▲ Good
A 450 km offshore seismic survey over the giant Marantao prospect in SC55 (Otto 55%) starts 19 October, funded by Vital. The company estimates 500-750 million barrels or 2.5-4.0 TCF recoverable. Calauit 1B well planning and a Villaba gas study continue.
10 Oct 2006annual report● Neutral
Annual report and AGM notice sent to shareholders. The report repeats known facts, including the NorAsian acquisition, Vital farm-outs, the Calauit rig and Turkey gas. The chairman calls Philippine progress 'somewhat disappointing' given rig and survey vessel scarcity.
5 Oct 2006capital raising announcement▲ GoodMajor
The $2.25m placement is complete: 15m shares at 15c with 7.5m free 20c options, issued 5 October 2006. Funds go to the first Bare Boat Charter payment for the Calauit rig. Shares quoted now total about 105.5m.
What it means for a shareholder
15.0m new shares at A$0.150 to raise about A$2.3m. That's 14% dilution: every existing holder's slice gets 14% smaller. If you held A$1,000 of shares (6,667 at the issue price), your slice goes from 0.00736% to 0.00632% of the company. To keep it you'd need 1,105 more shares - about A$166 at the issue price.
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29 Sept 2006other● Neutral
Substantial shareholder notices (Forms 604/605) lodged. The company says holdings changed only because it issued new shares, with nothing sold. Administrative.
27 Sept 2006annual report▼ Bad
Annual report for the year to 30 June 2006: loss of $1,501,857 versus $430,197 the year before. Notes Bati Umur-1 and Arpaci-1 as gas discoveries, though Arpaci-1 water content may make it non-commercial.
25 Sept 2006material agreement▲ GoodMajor
NorAsian confirmed a 3-year rig charter (US$11.25m over 12 months, Otto share US$4.1m), delivery 15 October 2007, for Calauit. Vital's farm-in is revised to 35% of Calauit. Otto is placing 15m shares with options to raise $2.25m for the first payment.
14 Sept 2006regulatory community update▲ Good
A 175 km seismic survey began 6 September in the Edirne Licence, Turkey, carried by Incremental's farm-in, to mature at least two more drilling targets. The operator puts Bati Umur-1 recoverable gas at 1.29 BCF (P50).
21 Aug 2006director officer appointment● NeutralMajor
The company is now Otto Energy (code OEL unchanged), as approved by shareholders on 18 August. Rufino Bomasang, former head of PNOC-EC and NorAsian chairman, joins the board. David Riekie becomes alternate to Ian Macliver.
18 Aug 2006investor presentation● Neutral
Presentation to the 18 August general meeting repeated the Turkey, Philippines and Argentina plans. It added a Calauit targeted first-year production profile of about 2.76m barrels and a two-month project payback claim, with no new results.
16 Aug 2006capital raising announcement▲ GoodMajor
Rights issue completed: 29,048,125 shares at 15c issued with about 14.5m free 20c options, raising roughly $4.36m. This funds the NorAsian acquisition, so the shortfall was successfully placed.
14 Aug 2006material agreement▲ Good
NorAsian signed a non-binding deal for a 3-year charter of a multi-purpose rig due late 2007, to re-enter Calauit 1B. The company expects initial flow up to 15,000 bopd. Final terms are due in September.
10 Aug 2006contract award▲ GoodMajor
NorAsian contracted Veritas to shoot 400 km of 2D seismic over the large Marantao reef prospect in SC55 in September 2006. Otto holds 42.5% of SC55 now, rising to 85% if the 18 August vote passes; Vital funds most of the cost.
3 Aug 2006investor presentation● Neutral
Audio broadcast and investor presentation by the managing director repeating known plans: Turkey gas, Calauit first oil in 2007, Santa Rosa licence award expected in the second half of 2006. No new results.
2 Aug 2006capital raising announcement▼ Bad
Rights issue take-up was weak: valid applications for 7.17m shares plus 4.19m from directors, leaving a shortfall of 17.69m of the 29.05m shares to be placed by the underwriter. The underwriting should still cover the full raise.
31 July 2006quarterly activities report● Neutral
June 2006 quarter report restates the NorAsian purchase terms, rights issue and Vital's farm-in (US$685,000 received). Turkey's regulator approved the Incremental farm-in; about 200 line km of seismic is planned. Mostly repeats known events.
19 July 2006joint venture update▲ Good
Due diligence on buying the rest of NorAsian is complete, with the shareholder vote set for 18 August. Vital Resources, which took over the Bentley farm-in, has paid US$685,000 so far. A Chapman estimate puts Calauit 1B at 54.7m barrels in place.
17 July 2006other● Neutral
ASX granted a listing-rule waiver so the meeting notice can seek approval for 10m shares and 20m 30c options for AustralAsian (the production-linked NorAsian deal securities) to be issued later, within three years. Administrative.
14 July 2006capital raising announcement● Neutral
Prospectus and newsletter despatched for the 1-for-2 rights issue (29.05m shares at 15c, about $4.36m, closing 28 July). Repeats known terms and project plans; directors say they will take up their entitlements. No new result.
What it means for a shareholder
29.1m new shares at A$0.150 to raise about A$4.4m. That's 24% dilution: every existing holder's slice gets 24% smaller. If you held A$1,000 of shares (6,667 at the issue price), your slice goes from 0.00736% to 0.00558% of the company. To keep it you'd need 2,139 more shares - about A$321 at the issue price.
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4 July 2006capital raising announcement● Neutral
Shareholder letter on the rights issue (29.05m shares at $0.15, about $4.36m) with its timetable: record date 11 July, close 28 July, allotment 8 August 2006. Underwriter Max Capital is paid 1% management and 5% underwriting fees. No new information beyond the prospectus.
What it means for a shareholder
29.1m new shares at A$0.150 to raise about A$4.4m. That's 24% dilution: every existing holder's slice gets 24% smaller. If you held A$1,000 of shares (6,667 at the issue price), your slice goes from 0.00736% to 0.00558% of the company. To keep it you'd need 2,139 more shares - about A$321 at the issue price.
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30 June 2006security holder rights change● Neutral
Letter to option holders: to join the rights issue they must exercise options before the record date of about 11 July 2006. Administrative notice.
30 June 2006capital raising announcement● Neutral
Prospectus lodged for the underwritten rights issue: 29,048,125 shares at $0.15 (1 for 2), with a free option per 2 shares taken up, raising about $4.36m. Closes 28 July 2006. It funds the NorAsian acquisition announced 6 June.
7 June 2006business combination▲ GoodMajor
Ottoman agreed to buy the other 50% of NorAsian (Philippines SC50, SC51, SC55) from AustralAsian for 15m shares, 7.5m options and A$2.5m cash, plus later production-linked shares. Bentley farms in for 30% for about US$9.5m. A $4.36m rights issue at 15c funds it.