Past year: ▲ 50%(0.40c – 0.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
29 Oct 2020joint venture update▼ Bad
Byron says SM71 was shut in on 25 October ahead of Hurricane Zeta and platforms were evacuated. Its SM58 G2ST well completion is finished, with production expected the week of 2 November. Otto's 50% SM71 is temporarily off line.
19 Oct 2020production update▲ GoodMajor
GC21 'Bulleit' produced first oil on 15 October 2020 and first sales that afternoon, with output being raised in 1,000 bopd steps over 1-2 weeks. Otto holds 16.67%. This resolves the delayed start-up and gives Otto its third producing field.
16 Oct 2020security holder rights change● Neutral
ASX notice of the proposed 1-for-50 share consolidation, cutting ordinary shares from about 4.795bn to 95.9m, subject to approval at the 19 November meeting. The A$0.08 options would become 850,000 at A$4.00. This is the formal timetable for the 16 October proposal.
16 Oct 2020security holder rights change● NeutralMajor
Otto plans to seek approval at the 19 November AGM for a 1-for-50 share consolidation, cutting shares from about 4.8 billion to about 96 million, to reduce share price volatility. A buyback of unmarketable parcels (under A$500) would follow, at the 2 December closing price.
16 Oct 2020annual report● Neutral
Otto's 2020 annual report repeats known FY20 results: production 946,445 boe, net revenue US$23m, EBITDAX US$20.9m, and 1P/2P/3P reserves of 4.8/8.1/11.7 MMboe. GC21 production and the Beluga spud are expected in October. Nothing new in the readable text.
16 Oct 2020other● Neutral
Appendix 4G and corporate governance statement lodged with the annual report, confirming the governance statement is current at 16 October 2020. Administrative filing with no new business information.
13 Oct 2020joint venture update▲ Good
Byron reports no damage at SM71 or SM58 after Hurricane Delta, and production is restarting after pipeline clearance on 12 October. This resolves the September Sally shut-in of Otto's 50% SM71 field. Byron's SM58 completion work also resumes.
8 Oct 2020drilling progress report▼ Bad
GC21 "Bulleit" first production slips about two weeks past the late-Q3 target because of severe weather. Start-up is expected 3-4 days after the crew returns on 9 October, then a 1-2 week ramp up. Otto holds 16.67%.
5 Oct 2020farm in farm out agreement● NeutralMajor
Otto and Hilcorp agree to drop the Tarpon, Oil Lake and Mallard prospects from the Gulf Coast program, so Beluga will be the last well. Otto's Beluga interest halves to 18.75%, costing about US$2.25m. Drilling starts around 5 October with a 45% chance of success.
25 Sept 2020annual report● Neutral
FY20 production rose 28% to 946,445 boe, but net revenue fell to US$23m from US$31.3m. EBITDAX was US$20.9m and net loss narrowed to US$1.4m from US$18.4m. GC21 first production is said to be days away.
25 Sept 2020joint venture update▼ BadMajor
Operator Byron publicly disputes Otto's reserves downgrade at SM71 after the F5 well, saying Otto skipped the joint third-party report it has used for five years. Byron calls the F5 gas sand a stray sand. This opens a technical disagreement between the two SM71 partners.
24 Sept 2020resource reserve update▲ GoodMajor
At 30 June 2020, net 1P reserves rose 31% to 4.8 MMboe and 2P 13% to 8.1 MMboe; 3P rose 15% to 11.7 MMboe. Growth came from the GC21 discovery and Lightning's Green #3, while some SM71 reserves were downgraded after the F5 well. Prospective resources fell 29% to 58.3 MMboe.
15 Sept 2020joint venture update▼ Bad
Byron says SM71's four wells were shut in on 13 September because Hurricane Sally closed the downstream oil sales line. Production resumes when the pipeline reopens. Byron also notes it holds 100% of the F4 well until payout, as Otto did not participate.
14 Sept 2020director officer appointment▲ GoodMajor
Michael Utsler, a former Woodside COO with 15 years in the Gulf of Mexico, became CEO and Managing Director on 11 September on US$300,000 a year. This fills the vacancy left by Matthew Allen's June exit. He will run a strategic review including the asset base. Jetter returns to non-executive chair.
31 Aug 2020joint venture update▲ Good
Byron reports only minor damage at SM71 after Hurricane Laura, and production was restored on 29 August. This resolves the 23 August shut-in of Otto's 50% field. The rest concerns Byron's SM58 well.
24 Aug 2020joint venture update▼ Bad
Operator Byron's release says SM71 was shut in on 23 August ahead of Hurricanes Marco and Laura, with staff evacuated. Otto's 50% field is affected temporarily. The release mainly concerns Byron's own SM58 well; no restart date for SM71 given.
31 July 2020quarterly activities report● Neutral
June quarter output was about 3,100 boe/d (+14%), with revenue down 36% to US$4.39m on lower prices. Cash was US$16.6m and Macquarie debt US$20.7m. GC21 remains on track for late Q3, and July hedges lifted the 2020 average to US$50.11.
20 July 2020director officer appointment● Neutral
Geoff Page, a finance professional with over 20 years' experience, joins as non-executive director and Audit and Risk Committee chair. Paul Senycia steps down as committee chair but stays on the board. This continues the board renewal led by John Jetter.
16 July 2020investor presentation▲ GoodMajor
Otto reports CEO search progressing and cost cuts that should lower operating and corporate costs from about US$7.0m in FY20 to about US$4.5m in FY21. Production is about 70% hedged at US$50/bbl for 2020; Macquarie debt is US$20.7m; GC21 remains on track for late Q3.
11 June 2020director officer appointment● NeutralMajor
CEO and Managing Director Matthew Allen steps down immediately after eleven years at Otto, staying as adviser for six months. Chairman John Jetter becomes Executive Chairman and Kevin Small oversees daily operations while a Houston-based successor is sought.
7 May 2020production update▲ Good
Operator Byron raises SM71 output to about 2,900 bopd and 7.0 mmcfd gross as oil prices recover above US$20/bbl, reversing the late-March cut to about 1,900 bopd. F4 supplies about 5.0 mmcfd and is 100% Byron until payout; Otto holds 50% of the field.
6 May 2020listing compliance notice● Neutral
Replying to an ASX aware query about disclosure of Macquarie facility terms, Otto says none of the information was price-sensitive or obliged to be released earlier. It says a covenant variation was signed 24 March 2020 and the facility remains in compliance.
24 Apr 2020capital raising announcement● NeutralMajor
The retail offer raises A$6.0m from 1,000m shares at A$0.006: only A$1.78m from applications, with about A$4.2m taken up by underwriter Euroz and sub-underwriters. Total raised is about A$13.8m, below the A$17.5m targeted, with allotment on 28 April.
What it means for a shareholder
1.00bn new shares at A$0.006 to raise about A$6.0m. That's 21% dilution: every existing holder's slice gets 21% smaller. If you held A$1,000 of shares (166,667 at the issue price), your slice goes from 0.00443% to 0.0035% of the company. To keep it you'd need 44,260 more shares - about A$266 at the issue price.
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15 Apr 2020debt financing▲ Good
Macquarie confirms Otto has met the one-off requirement to hold US$17.5m cash at bank, a test not needed again during the facility. This resolves the review-event risk flagged on 2 April; no default has occurred.
14 Apr 2020quarterly activities report● Neutral
March quarter sales were 2,714 boe/d, up 42%, on Lightning's Green #2 well, while revenue fell 14% to US$6.9m on lower prices. SM71 is at about 820 boe/d net. Cash was US$14.3m before the raise, debt US$20m; GC21 first production is late Q3.
9 Apr 2020capital raising announcement● Neutral
Otto extends the retail entitlement offer close from 16 April to 21 April 2020, as COVID-19 freight delays held up some shareholders' documents. New shares are now to be allotted 28 April.
6 Apr 2020other● Neutral
Otto summarises its recent cost and governance changes and adds Houston office running costs cut about 40% against budget, including 30% salary cuts. F1 was shut in at SM71 with minimal expected cashflow impact because volumes roughly match hedged volumes. Mostly repeats known items.
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'.
