Past year: ▲ 50%(0.40c – 0.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
8 May 2012farm in farm out completion▲ GoodMajor
Tanzanian government approved the assignment of a 50% interest in the Kilosa-Kilombero and Pangani PSAs from Swala to Otto, resolving the pending approval from February. Aeromagnetic data reprocessing has started and an airborne magnetic and gravity survey is planned for July 2012.
1 Mar 2012resource reserve update▲ GoodMajor
Nido, a Galoc partner, reported an independent audit lifting Galoc 2P reserves to 22.89 MMstb gross (from 18.6) at 31 December 2011. Better-than-expected reservoir performance in late 2011 is credited. Nido's own net 2P figure is 3.07 MMstb. Positive for Otto's 33% Galoc stake.
22 Feb 2012farm in farm out completion▲ GoodMajor
The Philippine Department of Energy approved the transfer of 60% and operatorship of SC55 to BHP Billiton, completing the farm-in conditions. Otto keeps 33.18% and Trans-Asia holds 6.82%. Cinco-1 drilling planning continues, with the rig situation still to be updated.
18 Jan 2012drilling scheduled▼ BadMajor
BHP Billiton terminated the contract for the Transocean Deepwater Expedition rig because it failed key acceptance tests. The Cinco well start date is now unconfirmed, against a 5 August 2012 deadline for the sub-phase. This undermines the planned April 2012 spud.
28 Dec 2011farm in farm out completion▲ GoodMajor
Otto signed the final SC55 farm-in agreements with BHP Billiton, following BHP's May 2011 option exercise. Otto receives a final US$7.3m back-cost payment, of which US$5.0m is already received. Philippine Department of Energy approval of the transfer is still needed.
23 June 2011drilling progress report▲ Good
The SC69 3D seismic survey finished, with over 210 km2 of data acquired. Processing will take about six months before interpretation of the Lampos prospects.
8 June 2011drilling progress report● Neutral
3D seismic acquisition has begun in SC69 over about 210 km2, using the BGP Explorer. It targets the Lampos and Lampos South reefs, with oil in place of 22-713 mmbbl (mean 290). It fulfils the current sub-phase commitment.
25 May 2011drilling result▼ BadMajor
Duhat-1A sidetrack also stuck at 321m, and further drilling was judged unsafe, so the well is being abandoned short of the 1,000m target. Otto cites high gas readings as encouraging, but unexpected shallow overpressure needs study. The well did not test the target.
16 May 2011drilling progress report▼ Bad
Duhat-1 became stuck at 325m because of unstable hole, as in a nearby offset well. It was plugged back to 224m and sidetracked, and is now drilling at 295m. The company says the geological expectations are unchanged.
11 May 2011farm in farm out agreement▲ GoodMajor
BHP Billiton exercised its option to farm into SC55, earning up to 60% and operatorship by reimbursing past costs and funding one deepwater well by 2012. Otto keeps 33.18%. This resolves the open BHP decision; approvals are still needed.
4 May 2011resource reserve update▲ GoodMajor
Independent review of Galoc reserves at 1 Jan 2011: Otto's share of proven reserves rose 78% to 0.69 MMboe and proven plus probable rose 52% to 1.38 MMboe. Contingent resource for Phase 2 is 0.85 MMboe. Field life now expected to about 2014-2018.
28 Apr 2011drilling progress report● Neutral
Duhat-1 reached 205m with 13 3/8-inch casing set and cemented. The blowout preventer is being pressure tested before drilling on. The company says it is on track to reach its planned total depth.
19 Apr 2011drilling spud● NeutralMajor
Duhat-1 spudded on 19 April 2011 in SC51, onshore Leyte, Otto's first operated Philippine exploration well. It aims for 1,000m in about 27 days. Pre-drill oil in place is 12-263 MMbbl (P50 76 MMbbl); Otto holds 40% pending SWAN approval.
9 Mar 2011drilling scheduled▲ GoodMajor
Initial interpretation of SC55's 1,800 km2 seismic shows large to very large Nido carbonate leads alongside Hawkeye. SC69 3D seismic contract is signed for late Q2 2011, Duhat-1 is mobilising, and BHP Billiton's farm-in decision is due in Q2 2011.
3 Feb 2011farm in farm out completion▲ Good
Otto received SWAN's US$1.5m contribution toward Duhat-1, still awaiting Philippine energy department approval of the SC51 farm-down. It also clarified that after Duhat-1, partners may choose the offshore Argao-1 well or a second northern onshore well.
3 Feb 2011farm in farm out agreement▲ GoodMajor
Otto agreed with partner Trans-Asia to raise its SC55 stake by 8.18% to 93.18%, and its SC69 stake by 9% to 79%. Otto carries Trans-Asia through SC55 wells and part of SC69 costs, with interest reverting if Otto does not drill.
18 Jan 2011farm in farm out agreement● NeutralMajor
Otto farmed out 40% of SC51 to unlisted SWAN Oil and Gas, which pays the first US$1.5m of Duhat-1 and gets 80% of the southern block. Otto stays operator and keeps 40% of the northern block, leaving it with 40% overall. Awaiting Philippine energy department approval.
24 Mar 2010drilling scheduled● Neutral
Otto has begun about 900 line km of 2D seismic in SC69 (Visayan Basin, 70% interest). The survey fulfils the current sub-phase commitments and aims to mature leads.
15 Feb 2010drilling progress report● Neutral
Phase 2 Edirne drilling covers up to seven shallow gas wells (35% interest). Yolboyu-1 spudded 12 February, a higher-risk 2,000m step-out with up to 7 Bcf potential that would need extra infrastructure. Other wells target modest volumes.
10 Feb 2010drilling scheduled● Neutral
Otto begins a roughly 1,800 km2 3D seismic survey in SC55 on 10 February, expected to take about two months. This is larger than the 590 km2 survey planned in December, and fits with the BHP Billiton seismic agreement.
28 Jan 2010drilling result▲ Good
Kumluk-1 in the Edirne licence reached 550m, with 9m of net gas pay over three intervals, in line with pre-drill estimates. Cased as a potential producer. Extends Edirne's run of drilling success; Kartal-1 is next.
15 Jan 2010farm in farm out agreement▲ GoodMajor
BHP Billiton will fund 1,000-2,000 km2 of 3D seismic in SC55 in return for an option to earn 60% by funding two deepwater wells and refunding Otto's past costs. Subject to formal agreements and approvals. Advances the Philippine farm-down effort.
9 Dec 2009drilling scheduled▲ Good
Otto will acquire 590 km2 of 3D seismic in the southwest of SC55 (Otto 85%, operator), starting with the vessel arriving 14 December. It meets the current work commitment and follows the DoE-extended SC55 programme.
14 Oct 2009resource reserve update▲ GoodMajor
Otto estimates Galoc gross 2P reserves at 8.4m barrels (Otto share 1.46m) at 30 June 2009, with 6m barrels gross 2C contingent. First-year output topped 2.9m barrels and Otto received its first GPC distribution of US$2.16m in August. Resolves the pending reserves reassessment.
14 Oct 2009resource reserve update▼ Bad
Nido, a Galoc partner, says it has neither reviewed nor supports Otto's reserve estimates, which it notes are Otto's own and not independently reviewed. Nido is running its own independent review, due to conclude in January 2010.
28 July 2009drilling result▼ BadMajor
The Santa Rosa well in Argentina (Otto 32.5%) reached 1,270m with no hydrocarbons; target reservoirs were absent at this crest location. It will be abandoned as a dry hole. Second dry hole in two months, ending non-operated drilling.
15 July 2009drilling progress report● Neutral
Kuzey Ikihoyuk-1 in Turkey reached 387m and found several zones of interest, with testing to follow. Galoc repairs are further delayed by poor weather. Santa Rosa well is expected to spud this week.
2 July 2009drilling spud● Neutral
Kuzey Ikihoyuk-1 spudded 1 July in the Edirne Licence (Otto 35%), exploring a different structure to earlier wells, to about 450m. Santa Rosa rig mobilising, spud expected July. Continues the Turkey and Argentina drilling programs.
16 June 2009drilling result▼ BadMajor
Gazzata-1 in Italy's Po Valley, drilled to 2,840m, showed no commercial gas and will be abandoned as a dry hole. Otto was funding it to earn 50%. Separately, Ikihoyuk-2 in Turkey flowed up to 4.95 MMscf/d, a high rate for the licence.
27 May 2009drilling progress report● Neutral
Kirmizihoyuk-1 in Turkey (Otto 35%) reached 500m; ambiguous deeper zones tested partly gas-bearing at up to 0.71 MMscf/d with water. Main zones to be flow tested. Gazzata-1 in Italy was drilling at 586m. Santa Rosa spud expected mid/late June.
