18 Dec 2017drilling progress report● Neutral
SM 71 F2 is drilling ahead at 4,895 ft MD after setting casing at 3,685 ft, proceeding to plan. Total depth (planned 8,965 ft) is expected before the end of December. No new result.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
15 Dec 2017drilling result▼ BadMajor
ST 224 #1 reached 10,900 ft and the target BN sand came in close to prediction but is water bearing, so the well will be plugged and abandoned. A dry hole for the well flagged as a Q4 catalyst. SM 71 F2 is next.
4 Dec 2017drilling spud▲ GoodMajor
The SM 71 F2 well has spudded and was at 564 ft on 3 December. B65 is tested first, then the D5 sand, with about a month to drill and evaluate. First production is still expected in late January 2018. Otto holds 50%.
29 Nov 2017drilling progress report▲ Good
ST 224 #1 has 13 5/8-inch casing set at 8,084 ft TVD, with strong wet gas shows in thin intervals above the 10,800 ft target. The target, a mid-case 3.2 MMbbls oil plus 90 Bcf gas (100% basis), is still to be drilled. No result yet.
20 Oct 2017drilling spud▲ GoodMajor
The ST 224 #1 exploration well has started drilling, at 1,240 feet on 19 October, targeting 10,800 ft TVD. Otto holds 25% with W&T Offshore operating; about 55 days to drill and evaluate. This is the Q4 well flagged earlier; no result yet.
5 Oct 2017drilling scheduled▲ Good
Enterprise 264 rig due on location within a week, with ST 224 drilling to start by mid-October. Target is 3.2 MMbbls oil plus 90 Bcf gas (mid-case, 100%); about 55 days to drill. Otto holds 25%. Confirms the Q4 timing flagged earlier.
28 Sept 2017resource reserve update▲ GoodMajor
An independent 30 June 2017 estimate put Otto's SM 71 2P reserves at 2,793 Mboe, up from 2,271 Mboe, and the B65 prospective resource at 2.869 MMboe. Bivouac Peak was unchanged at 20,520 Mboe. First production was expected in January 2018 at 3,000-4,000 bopd from two wells.
24 July 2017drilling scheduled▲ Good
Operator W&T has contracted the Enterprise Offshore 264 jackup rig for ST 224, and the regulator has approved the exploration plan. Drilling is still expected in Q4 2017. Otto's 25% farm-in from 3 July moves closer to a spud.
3 July 2017farm in farm out agreement▲ GoodMajor
Otto farms into the South Timbalier 224 lease in the Gulf of Mexico for a 25% interest, alongside operator W&T Offshore. Otto funds about US$2.7m of well costs, with drilling expected in Q4 2017. A gas condensate prospect.
22 June 2017farm in farm out agreement● NeutralMajor
Otto elects to take up to 50% of Vermilion VR 232 if Byron wins its appeal against the regulator's bid rejection. If not, Otto can take 50% of SM 74 on the same terms. Both lie near the SM-71 discovery. Depends on the appeal outcome.
25 July 2016resource reserve update● Neutral
Byron's full reserves report covers its own portfolio, including Bivouac Peak gross prospective resource of 15,990 Mbbl and 177,666 MMcf. Byron's GI 95 gas project was downgraded to contingent resource. Mainly relevant to Otto through Bivouac Peak and SM 71.
25 July 2016resource reserve update▲ GoodMajor
Independent estimate puts Bivouac Peak at 15,288 MBOE net to Otto (unrisked best estimate), up from 3.1 MMbo and 34.6 Bcf at December 2015. The rise is attributed to additional 3D seismic showing a deeper prospect. Drilling planned for 2017.
7 July 2016resource reserve update▲ Good
Byron's operator report on SM 71 shows net 2P reserves of 2,271 MBOE to Byron, up 508% on 2015, with initial production targeted mid-2017. Otto holds an identical 50% interest, so this sets up the same figure for Otto (see Otto's own release).
7 July 2016resource reserve update▲ GoodMajor
Otto books its first Gulf of Mexico reserves: net 2P of 2,271 Mboe at SM-71, a finding cost of US$2.11 per boe. Converts the April discovery into reserves, and Otto targets production in 2017.
21 June 2016farm in farm out agreement▲ GoodMajor
Otto farms out 25% of Kilosa-Kilombero to MV Upstream for US$2.3m of historical cost reimbursement. MV Upstream also carries Otto's remaining 25% up to US$2m in Kito-1, with well cost about US$10m. Subject to approvals; spud expected 2H 2016.
27 Apr 2016drilling result▲ GoodMajor
Porosity logs show 132 feet of net oil pay in SM-71 #1 (I3 17ft, J 24ft, D5 91ft). The partners will deepen the well about 600 feet to test the D6 sand, expected within the original budget. Firms up the earlier gross-thickness discovery.
20 Apr 2016drilling result▲ GoodMajor
Byron reports an oil and gas discovery at SM 71 #1, drilled to 2,086m, with three hydrocarbon zones totalling 150 feet gross thickness. Byron plans to complete it for production. Net pay is not yet confirmed. Having drilled to earning depth, Otto can elect a 50% interest, offsetting the SM 6 #2 failure.
20 Apr 2016drilling result▲ Good
Otto confirms the SM-71 #1 Gulf of Mexico discovery: three oil and gas zones totalling 150 feet gross, to 2,086m. Otto has earned a 50% interest in SM 70/71 and says it can fund the work from cash. Net pay is not yet confirmed.
13 Apr 2016drilling progress report● Neutral
Byron says SM 71 #1 has set surface casing at 3,462 feet and is drilling ahead at 3,976 feet, with total depth and evaluation expected within about 10 days. Routine progress with no result yet.
4 Apr 2016drilling spud● NeutralMajor
Byron spudded SM 71 #1 on 3 April 2016, the second well of the Otto farm-in, with about 20 days to drill and evaluate. Otto has paid US$903,610 in back costs and pays 66.67% of the US$4.5m well cost.
30 Mar 2016drilling result▼ BadMajor
Byron said SM 6 #2 was temporarily abandoned before reaching the G20 sand after stuck drill pipe, so Otto earned no SM 6 interest and owed no back costs. Otto elected to join SM 71 #1, paying 66.67% of the US$4.5m estimated dry-hole cost (capped at US$3.0m) plus US$0.9m of past costs.
30 Mar 2016drilling scheduled● NeutralMajor
Otto exercised its option to join the SM-71 #1 well, to spud within a week and take about 20 days. Otto pays about US$3.0m for 50% plus US$0.9m back costs and assigns a 70% chance of success. Follows the SM 6 #2 failure.
30 Mar 2016drilling result▼ BadMajor
Otto confirms SM-6 #2 was plugged and abandoned at 2,464m after stuck pipe in an impenetrable shale, never reaching the G20 target. Otto earns no SM 6 interest, owes no back costs, and about US$100,000 of abandonment cost remains. Spend stays within US$5.3m.
21 Mar 2016drilling progress report▼ Bad
Byron says attempts to free the stuck pipe in SM 6 #2 failed over three days, so it is starting a side-track from 2,423m to the same 2,900m target depth. Drilling is due to resume later in the week.
18 Mar 2016drilling progress report▼ Bad
Byron reports SM 6 #2 got stuck drill pipe at 2,451m, about 400 feet above the G20 target, after the casing was run. Recovery attempts were under way. A setback for the Otto-funded well.
8 Mar 2016drilling progress report▲ Good
Otto says SM-6 #2 reached 2,389m, with oil and gas shows in three shallower F sands consistent with or better than nearby wells. Possible reserve additions, but the G20 primary target is still undrilled and no final result yet.
26 Feb 2016drilling progress report● Neutral
Byron reports SM 6 #2 has reached 1,058m with surface casing cemented. Next casing point is 2,403m, above the primary target; drilling resumes shortly. Routine progress with no result yet.
16 Feb 2016drilling spud▲ GoodMajor
SM-6 #2 spudded on 15 February 2016, Otto's first Gulf of Mexico well, drilling at 146m. About 40 days to drill and evaluate. Otto pays about US$5.3m to earn 50% of the lease, with a 70% chance of success it assigned.
11 Feb 2016drilling scheduled● Neutral
Otto confirms the rig is on location for SM-6 #2, with spud in days and about 40 days to drill. Otto puts the chance of success at 70% and its share of cost at about US$5.3m; success could mean first oil in 2017.
11 Feb 2016drilling scheduled● Neutral
Byron says the Hercules 205 rig is on location and SM 6 #2 should spud within about a week, with roughly 40 days to drill and evaluate. It targets the G20 sand to about 2,900m. Operator version of Otto's own announcement.