Past year: ▲ 50%(0.40c – 0.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
23 July 2019drilling result▲ GoodMajor
Mustang (Thunder Gulch #1) reached 18,164 ft MD and found at least 57 ft of net hydrocarbon pay, earning Otto 37.5% of the prospect. Completion and testing come next, with first production expected about 90 days after testing. Second Hilcorp program discovery after Lightning.
18 July 2019investor presentation● Neutral
Noosa conference presentation citing current production of about 2,250 boepd and net free cash flow of about US$2.4m per month, with a seven-well program targeting 5,000+ boepd. Largely restates known facts; text is truncated.
17 July 2019joint venture update▲ Good
After Hurricane Barry, SM 71 found undamaged and production resumed on a limited basis on 17 July, with normal rates expected within about 24 hours unless storm issues emerge. Resolves the storm shut-in with no damage reported.
11 July 2019joint venture update▼ Bad
Byron, SM 71 operator, shut in production and evacuated the platform on 10 July ahead of Tropical Storm Barry. Restart was expected around 14-15 July. A temporary hit to Otto's 50% share of SM 71 output.
10 July 2019joint venture update▲ Good
Operator Byron reports SM 71, 50% Otto, has produced over 1.5 million barrels gross since March 2018. June averaged 3,250 bopd and 4.4 MMscf/d, the best month since August 2018, with no water from the main reservoir. Confirms the field's steady performance.
4 July 2019drilling progress report● Neutral
Mustang (Thunder Gulch #1) set intermediate casing at 15,495 ft MD, with about 15 days to reach roughly 18,000 ft including logging. Final result expected mid-July, in line with the earlier July timing; no result yet.
21 June 2019production update▲ GoodMajor
Lightning's Green #1 well finished commissioning and is at steady state, about 10 MMscf/d gas and over 280 bbl/d condensate (Otto 37.5% WI: 3.7 MMscf/d, 105 bbl/d). Completes the 60-day commissioning; second well planned January 2020 or earlier; maiden reserves due July.
13 June 2019drilling result▲ GoodMajor
Bulleit's shallower DTR-10 sand shows 119 ft TVD of oil pay, confirmed as a commercial discovery with tie-back to GC18A and first oil expected in 2020. Reaching the deeper MP sand now needs a sidetrack after poor hole conditions, so the main target remains untested.
21 May 2019drilling result▲ GoodMajor
Bulleit logging found 235 ft gross pay in the shallower DTR-10 sand, well developed and oil bearing, with 50-60% net-to-gross. The deeper MP sand main target is still to be drilled, so the full result is pending.
21 May 2019other● Neutral
Notice of a video conference call on 22 May where the CEO will update shareholders on Bulleit and Lightning. No new information in the notice itself.
21 May 2019listing compliance notice● Neutral
ASX lifted Otto's trading suspension after the Bulleit update was released. Ends the short halt that began 17 May.
20 May 2019production update▲ GoodMajor
Lightning began producing gas and condensate after the pipeline hot tap, making it Otto's second producing field after SM 71 (37.5% WI). A 60-day commissioning period precedes maiden reserves. Resolves the Q2 delay; step toward the 5,000 boepd goal.
17 May 2019listing compliance notice● Neutral
Otto asked for a voluntary trading halt on 17 May pending an update on the Bulleit well, expected before trading on 20 May. Timing suggests a possible price-sensitive drilling result (inference); no result given.
16 May 2019joint venture update● Neutral
Byron, SM 71 operator, spud the SM74 D-14 exploration well and reports SM 71 was shut in for 7 days (4 forecast) for third-party pipeline maintenance. Otto holds the other 50% of SM 71 but has no stated interest in SM74; the shut-in trims output.
14 May 2019investor presentation● Neutral
Hong Kong conference presentation restating known catalysts: Bulleit to reach target before end-June, Mustang in July, Lightning production this quarter with maiden reserves after steady state. Repeats earlier announcements.
9 May 2019asset acquisition disposition● NeutralMajor
Otto took Byron's 50% of the VR 232 lease at no cost, lifting it to 100% and becoming operator. The block is next to SM 71 and has produced 2 Bcf gas and 30 Mbbl oil historically. Otto is evaluating prospectivity; no drilling plan announced.
9 May 2019joint venture update▼ Bad
Partner Byron's release: reprocessed seismic no longer supports its earlier VR 232 prospects, so it recommended relinquishing the block and Otto chose to take 100%. This tempers the VR 232 outlook that Otto's own release presented more positively.
7 May 2019drilling progress report● Neutral
Bulleit appraisal well has begun drilling, with surface casing set and the well at 4,190 ft on 6 May. About 42 days to drill is expected. Confirms the spud flagged on 30 April; no result yet.
1 May 2019drilling spud● NeutralMajor
Mustang exploration well (Thunder Gulch #1, Chambers County, Texas) started drilling, the next Hilcorp program well after Lightning and Don Julio 2. Otto pays 50% of cost (US$6.77m) for 37.5%; 56% chance of success; 74 days to reach about 18,000 ft TVD.
30 Apr 2019farm in farm out completion▲ GoodMajor
Final documents signed with Talos and EnVen for the Green Canyon 21 earn-in, confirming the 29 March deal: 16.67% interest for 22.22% of the Bulleit well cost. The drillship is on location with drilling due within days; Bulleit's P50 prospective resource is 14.5 MMboe gross.
26 Apr 2019capital raising announcement▲ GoodMajor
Retail entitlement offer drew A$6.9m of applications (46% take-up of entitlements plus A$1.2m extra). The A$5.4m shortfall goes to underwriter Morgans' sub-underwriters, so the full A$12.3m (231.8m shares at A$0.053) is raised, completing the ~A$31m raising.
What it means for a shareholder
232m new shares at A$0.053 to raise about A$12.3m. That's 10% dilution: every existing holder's slice gets 10% smaller. If you held A$1,000 of shares (18,868 at the issue price), your slice goes from 0.000907% to 0.000816% of the company. To keep it you'd need 2,102 more shares - about A$111 at the issue price.
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17 Apr 2019capital raising announcement● Neutral
Reminder that the retail entitlement offer (1 for 5 at A$0.053) closes 5pm on 23 April 2019. Administrative reminder of the raising announced 29 March; no new terms.
9 Apr 2019capital raising announcement● Neutral
Appendix 3B for 350.76m shares issued at A$0.053 on 9 April (207.5m placement, 143.2m institutional). About 231.8m more come from the retail offer on 1 May. Proceeds redeem US$8.1m notes, fund Bulleit and working capital.
5 Apr 2019capital raising announcement● Neutral
The retail entitlement offer opened and booklet dispatched: 1 for 5 at A$0.053, closing 23 April 2019. Administrative step in the raising announced 29 March; no new terms.
3 Apr 2019other● Neutral
Otto bought US$60/bbl put options (LLS benchmark) over 111,000 bbl of SM 71 oil for the next six months, covering 50-70% of forecast output. Premium is US$1.75/bbl, US$194,000 total, keeping upside above US$60.
2 Apr 2019capital raising announcement▲ GoodMajor
The A$11m placement (207.5m shares) and A$7.6m institutional offer (143.2m shares) closed oversubscribed at A$0.053. A fully underwritten retail offer of about A$12.3m opens 5 April. Otto says it is fully funded for its 2019 program.
What it means for a shareholder
143m new shares at A$0.053 to raise about A$7.6m. That's 6.4% dilution: every existing holder's slice gets 6.4% smaller. If you held A$1,000 of shares (18,868 at the issue price), your slice goes from 0.000907% to 0.000848% of the company. To keep it you'd need 1,298 more shares - about A$69 at the issue price.
Create a free account to see this worked out for your own holding.
29 Mar 2019capital raising announcement▲ GoodMajor
Otto farms into Talos-operated Green Canyon 21 (Bulleit), earning 16.67% by paying 22.22% of the appraisal well (US$9.0m share), drilling from Q2 2019. It also raises about A$31m (A$11m placement plus ~A$20m 1-for-5 entitlement offer) and will redeem US$8.1m of convertible notes.
29 Mar 2019investor presentation● Neutral
Investor presentation supporting the 29 March Green Canyon 21 farm-in and capital raising. The visible text is only the disclaimer; any detail presumably repeats the same-day announcement (inference).
13 Mar 2019drilling result▼ Bad
Partner Red Emperor repeats the Winx-1 final report: low oil saturations, no hydrocarbon samples, well to be plugged and abandoned. Duplicates Otto's same-day announcement; nothing new for Otto holders.
13 Mar 2019drilling result▼ BadMajor
Winx-1 wireline logs and fluid sampling showed low oil saturations and no mobile oil in the Nanushuk and Torok, so no production test will be run. The well will be plugged and abandoned. Reverses the earlier encouraging shows; Otto will reprocess seismic for remaining Western Blocks prospects.
