Past year: ▲ 50%(0.40c – 0.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
3 Apr 2020capital raising announcement● Neutral
The retail entitlement offer opens and the booklet is dispatched: one new share for each share held at A$0.006, to raise up to A$16.1m in total across the entitlement offer. It closes 16 April. Cover announcement with offer documents, no new terms.
2 Apr 2020debt financing● NeutralMajor
Otto clarifies Macquarie facility terms: US$22m drawn, a review event occurs if cash is below US$17.5m at 20 April, and failure to remedy lets Macquarie demand repayment. Cash was US$14.29m, expected to reach about US$18m after the raise. No default has occurred.
2 Apr 2020director officer appointment● NeutralMajor
Chairman Ian Boserio resigns and John Jetter becomes chairman, who will lead a board renewal after the raise. MD Matthew Allen offers a 50% pay cut for six months, subject to US Labor Department consent. Jetter acknowledges 'justifiable shareholder criticism'.
31 Mar 2020capital raising announcement▲ GoodMajor
Otto completes the A$1.4m placement and A$6.4m institutional entitlement offer at A$0.006 a share; Molton took 536.9m shares plus 528.7m shortfall shares as sub-underwriter. The partly underwritten retail offer of up to A$9.7m opens 3 April and closes 16 April.
31 Mar 2020production update▼ BadMajor
Because Louisiana Light Sweet crude fell to a discount to WTI of about US$7.60/bbl, operator Byron shuts in SM71 F1 and cuts F3 to 1,850 bopd. Field output falls from about 3,000 to about 1,900 bopd gross (Otto 50%), to be adjusted with prices.
30 Mar 2020admin correction● Neutral
Corrects the chairman's shareholder update: the wording should read assets producing at 'high margins', not 'low margins'. The rest of the message is unchanged.
30 Mar 2020other▼ BadMajor
Chairman Boserio says it will not be business as usual: for at least six months Otto will focus on protecting existing assets, including GC21, due on in the second half of 2020. Directors' fees are cut 50% for six months and Houston staffing is under review; the board and MD will take up their rights.
30 Mar 2020regulatory community update● Neutral
Byron says COVID-19 has caused no interruption to the SM71 platform it operates (Otto 50%), with screening in place on the rig and staff working remotely. No change to production is reported.
26 Mar 2020capital raising announcement▼ BadMajor
Otto launches a raise of about A$17.5m at A$0.006 per share, a 25% discount: a A$1.4m Molton placement plus a 1-for-1 entitlement offer of about A$16.1m, partly underwritten by Euroz. Funds cover the SM71 F5 share and contingent development wells.
26 Mar 2020investor presentation● Neutral
Presentation supporting the March 2020 entitlement offer. Text is truncated to the disclaimers, so no new figures can be taken from it beyond the accompanying raise announcement.
25 Mar 2020other● Neutral
ASX paused trading in Otto shares pending a further announcement. This precedes the capital raising released the next day (inference).
23 Mar 2020drilling result▼ BadMajor
Otto reports SM71 F5 hit 36 ft of net gas pay in the D5 plus 12 ft and 20 ft of oil pay in the I3 and J sands, but the D5 may be faulted out. The well is temporarily abandoned for a future sidetrack, citing COVID-19 risk. Not the hoped-for oil result; Otto holds 50%.
23 Mar 2020drilling result▼ Bad
Byron reports F5 reached 8,505 ft MD with 36 ft of net gas pay in the D5 target, which it calls isolated and marginal to uneconomic to complete. Smaller oil pay was found in the I3 and J sands. The wellbore will be abandoned for a later sidetrack.
17 Mar 2020drilling progress report● Neutral
Byron says SM71 F5 spud on 8 March 2020 and has surface casing cemented at 3,583 ft, with drilling ahead to a planned depth of 8,688 ft. Drilling is on schedule; Otto holds 50%.
13 Mar 2020other▲ Good
Otto says Perennial's 249D notice is invalid because Perennial does not hold the required 5% of votes, so no general meeting will be called. Resolves the attempt to remove Allen and Jetter from the board.
12 Mar 2020investor presentation● Neutral
Investor presentation to Euroz institutions discusses the impact of OPEC+ supply moves and COVID-19 demand loss on oil markets. Text is truncated, so no company-specific new figures are available.
12 Mar 2020half year report● Neutral
Half-year to 31 Dec 2019: net loss US$2.7m versus US$4.5m a year earlier, helped by lower exploration spend of US$8.1m. SM71 output was cut by the December compressor shut-in; Lightning added revenue. Directors list shows Boserio as chair and Jetter staying on as a director.
9 Mar 2020other● Neutral
Otto says 398,437 bbl of oil is hedged through 2022 at an average US$55.02/bbl, about 61% of net PDP oil volumes; 2020 hedges are at US$56.71/bbl. Hedging is also a Macquarie facility requirement. Restates the known hedging position after the oil price fall.
5 Mar 2020other▼ BadMajor
Shareholder Perennial Investment Management requested a general meeting to remove Matthew Allen (MD/CEO) and John Jetter as directors and appoint Alexander Beard and Douglas Jendry. Otto is checking the notice's validity. A shareholder challenge to the board and CEO.
4 Mar 2020joint venture update● Neutral
Byron says SM71 F4 completion is finished with production expected in about two weeks, and the F5 well (Otto 50%) has begun drilling on the Enterprise 264 rig. F5 targets part of the D5 Sand possibly poorly drained by F3. Continues the F4/F5 sequence.
26 Feb 2020security holder rights change● Neutral
About 5.8 million unlisted employee and director performance rights lapsed, including 4.63 million on 31 December 2019. Share capital stands at 2,460,464,725 ordinary shares. Administrative; no cash or share dilution effect stated.
24 Feb 2020flow test result▲ GoodMajor
Green #2 started producing at a stabilised 12.4 MMscf/d and over 350 bbl/d condensate from Tex Miss 1, while Green #1 continues at 14.3 MMscf/d. The deeper Tex Miss 2/3 zone showed low permeability and could not hold steady flow; a future stimulation test is planned.
20 Feb 2020drilling scheduled▲ GoodMajor
Otto confirms the SM71 joint venture will drill F5 from around 1 March 2020, with Otto at 50% WI. About 25 days to drill, 39 days to complete; first production in Q2 2020 if successful. Fulfils Otto's stated preference for F5.
20 Feb 2020joint venture update▲ GoodMajor
Byron says Otto has elected to join the SM71 F5 well, 50/50, after the F4 success. Drilling is expected around 1 March 2020 on the Enterprise 264 rig; F4 production is expected in 4-6 weeks. Reverses Otto's earlier stance of waiting for F5.
20 Feb 2020admin correction● Neutral
Byron announced the SM71 F5 well would be drilled after F4 logged hydrocarbons in the D5 Upper Sand. Otto elected to join with a 50% working interest, with spud expected around 1 March 2020 and planned total depth of 8,788 ft.
17 Feb 2020investor presentation▲ Good
Letter to shareholders restates the plan to reach 5,000 boe/d net by end-2020, with PDP oil mostly hedged to 2022 at about US$56/bbl. It flags possible growth initiatives or capital returns, and G&A cuts of US$1.8m (28%) by mid-2021. Text is truncated.
13 Feb 2020drilling result▼ BadMajor
Byron's SM71 F4 found 91 ft of net hydrocarbon pay in the D5 Upper Sand, at the upper end of expectations, and was drilled 25% under budget. Otto, which declined to participate, gets no share of this well's result.
7 Feb 2020drilling progress report● Neutral
Byron's SM71 F4 well, which Otto declined to join, is at 3,577 ft with surface casing being run; planned total depth is 8,180 ft and drilling is on schedule and budget. Byron holds 100% of this well.
20 Jan 2020production update▲ Good
Hilcorp raised the Green #1 choke, lifting gross output to 14.3 MMscf/d gas and over 400 bbl/d condensate, up from 11.9 MMscf/d and 360 bbl/d before the shut-in. Green #2ST first production is expected in February 2020.
6 Jan 2020drilling result▲ GoodMajor
Green #2ST at Lightning reached 15,121 ft with 146 ft of net pay over seven sands, and is being completed as a producer; Green #1 production has resumed. Gross cost is about US$9.5m versus an US$8.0m budget; Otto holds 37.5%. Resolves the sidetrack.
