17 Nov 2021other● Neutral
AGM chairman's address from Mike Utsler repeats the year's themes: 17% production growth, 62% lower field lifting costs and 28% lower non-field costs per boe, and the refreshed strategy. No new information.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
21 Oct 2021asset acquisition disposition▲ GoodMajor
Otto sold 11 million of its 14.27m Pantheon shares to an institutional investor for about US$10.5m (A$14.0m). It keeps about 3.27m shares (US$3.4m) and the 0.5% ORRI. Proceeds fund growth Pillars 2 and 3 and working capital. This turns the Alaska sale into cash.
15 Oct 2021annual report● Neutral
Otto's 2021 Annual Report restates FY21 results: production up 17% to 3,032 boe/d, WI revenue US$39.7m, and an US$8.0m profit on the Alaska sale. Also notes Talitha #A is drilled and being tested. Largely repeats the results already released on 28 September.
15 Oct 2021admin correction● Neutral
Appendix 4G confirms the FY21 corporate governance statement is on Otto's website and current at 27 September 2021. Routine compliance filing with no new business information.
14 Oct 2021farm in farm out agreement▲ GoodMajor
Otto farmed into two onshore Texas gas/condensate wells, Schindler (25% WI, US$0.9m) and Eaves (10.3125% WI, US$0.2m), both due to drill in Q4 2021. First inorganic growth (Pillar 3) step, funded from existing cash. Schindler is assessed at 54% chance of success.
29 Sept 2021investor presentation● Neutral
Otto released its FY21 results presentation, repeating figures already reported: cash US$11.1m, debt US$11.5m, and a Pantheon stake worth US$14.5m at 28 September. Share price was A$0.009, market cap A$43.1m. No new announcement.
28 Sept 2021annual report▲ Good
FY21 production rose 17% to 3,032 boe/d and WI revenue 38% to US$39.7m. Statutory net loss was US$0.5m, with adjusted EBITDAX of US$29.1m including the Alaska sale gain (about US$8.0m profit). Cash US$11.1m, debt US$11.5m after US$9.2m repaid.
28 Sept 2021investor presentation● Neutral
Notice of an investor conference call on 29 September 2021 to discuss FY21 results, hosted by Mike Utsler and Sergio Castro. Administrative notice with no new business information.
14 Sept 2021production update● Neutral
Otto shut in SM71 and GC21 on 27 August ahead of Hurricane Ida. No damage or injuries were reported. SM71 restarted 10 September and GC21 on 11 September; Lightning was unaffected. All assets are back in production.
9 Sept 2021resource reserve update▼ BadMajor
At 30 June 2021 net reserves were 1P 4.1 MMboe, 2P 6.5 and 3P 8.4, down from 4.8, 8.1 and 11.7 a year earlier. Prospective resources fell 96% to 2.1 MMboe, on removal of Beluga, Tarpon, Mallard and Alaska. GC21 MP sand reserves were written down.
27 Aug 2021security holder rights change● Neutral
Otto issued 30 million unquoted advisory options to Foster Stockbroking under a capital markets advisory agreement: 20m at A$0.02 and 10m at A$0.025, expiring 27 August 2024. Mainly a share-structure notice; the text does not say why advice was sought.
23 Aug 2021debt financing▲ GoodMajor
Macquarie and Otto amend the facility: all GC21 timing and production requirements are removed. The 1,900 boepd minimum quarterly average now runs to 31 December 2021, then falls to 1,400 boepd until maturity on 4 November 2022. No fees. This resolves the 31 July GC21 deadline.
30 Apr 2021investor presentation● Neutral
Otto released an updated corporate presentation restating its strategy, assets and finances (cash US$7.8m, debt US$13.8m, market cap about A$53m). It repeats known facts and carries no new announcement.
21 Apr 2021production update▼ BadMajor
Technical work shows GC21's MP sand reservoir is smaller than expected. Otto now favours recompleting in the shallower DTR-10 sand in mid-2022, with production mid to late 2022. Long-lead items cost US$0.6m net to Otto, due mid-2021. This confirms the earlier underperformance.
9 Apr 2021price query● Neutral
Otto tells ASX it knows of no undisclosed information behind its share price rise from A$0.011 to A$0.018. It points to the Pantheon share holding, Talitha #A flow testing on the Kuparuk, and social media chatter about undervaluation.
8 Apr 2021other● Neutral
ASX temporarily paused trading in Otto's shares pending a further announcement. No reason is given in the notice; it follows an ASX price query the same day (see next item).
29 Mar 2021asset acquisition disposition▲ Good
Otto's Alaska subsidiary has been issued the 14,272,592 Pantheon shares, now quoted in London and escrowed to 30 June 2021, worth about US$8m. Talitha #A well testing is under way. This follows the January sale and approval.
25 Mar 2021asset acquisition disposition▲ GoodMajor
Alaska regulators formally approve the sale of Otto's Alaska subsidiary to Pantheon, and Otto will receive 14,272,592 Pantheon shares, locked up to 30 June 2021, worth about US$7.4m. This completes the January deal. Pantheon is about to test Talitha #A's Kuparuk zone.
11 Mar 2021half year report▼ BadMajor
Half-year to December: production up 35% to 3,068 boe/d but revenue down 17% to US$14.4m on lower oil prices. Net loss was US$14.3m including a US$12.9m GC21 impairment. GC21 cost about US$39.2m versus US$23.5m estimated. Cash US$9.7m, debt US$16.1m.
9 Mar 2021security holder rights change● Neutral
Unlisted performance rights lapsed unexercised: 2,618,000 and 3,990,000. Shares stay at 4,795,009,773, and 42.5m options at A$0.08 remain. Administrative capital-structure update.
18 Feb 2021drilling result▲ Good
Pantheon reports Talitha #A reached 10,452 ft and found oil in four zones, with testing next. Otto, whose Alaska sale to Pantheon awaits approval, calls it encouraging. Its 14.27m Pantheon shares were valued at about US$8.5m. Preliminary only; testing is needed to confirm commerciality.
21 Jan 2021debt financing● NeutralMajor
Macquarie amends the credit facility after GC21's weak performance. The US$10m Tranche A2 is extended to 31 March 2022, GC21 fix plans are due by 31 July 2021, and a minimum 1,900 boepd quarterly production test applies until then.
20 Jan 2021asset acquisition disposition▲ GoodMajor
Otto agrees to sell its Alaska subsidiary (10.8% of Talitha) to Pantheon for 14,272,592 Pantheon shares, about US$8.02m, locked up to 30 June 2021. Otto keeps a 0.5% overriding royalty. It needs no further Alaska spend, subject to Alaska DNR approval.
5 Jan 2021drilling scheduled▲ Good
Otto holds 10.8% of the Talitha Unit in Alaska. Operator Pantheon has started building the ice road, and the Talitha #A well is expected to spud in January 2021. Otto says it is fully funded to participate. Pantheon estimates potential for a gross billion barrels.
29 Dec 2020production update● Neutral
Year-end update: SM71 gross 2,651 bbl/d oil, Lightning 21.4 MMscf/d gas, and GC21 about 1,100 boe/d. Otto's share is 3,282 boe/d on a working-interest basis and 2,569 boe/d net revenue. GC21 remains under review for intervention or recompletion.
26 Nov 2020production update▼ BadMajor
GC21 'Bulleit' is producing 500 bopd and 3.5 MMscfd, down from 1,000 bopd and 6 MMscfd at first flowback, and below what analogues suggest. Partners are considering stimulation or recompletion. This contradicts the earlier hopeful ramp-up; 70% of its proven reserves sit in the DTR-10 sand.
24 Nov 2020admin correction● Neutral
Otto says a technical fault hid some shareholder questions during the 19 November virtual AGM. Responses have been posted on its website. Administrative notice with no business information.
24 Nov 2020director officer appointment● Neutral
Confirms Mike Utsler became Executive Chairman at the 19 November AGM as John Jetter retired from the chair; Jetter stays as a non-executive director. Jetter had been on the board since 2007 and led the Galoc investment and sale and the move into North America.
20 Nov 2020security holder rights change● Neutral
ASX notice cancelling the 16 October 1-for-50 consolidation notice, because the resolution was withdrawn before the AGM. Shares stay at 4,795,009,773 and the A$0.08 options are unchanged. Administrative follow-up to the 18 November withdrawal.
19 Nov 2020drilling result▼ BadMajor
Beluga Unit #1 in Texas reached 13,800 ft MD but found only sub-commercial hydrocarbons and will be plugged and abandoned. Otto held 18.75%, with cost expected near US$2.25m; the well came in below budget. It ends the Hilcorp exploration program.