Past year: ▲ 50%(0.40c – 0.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
10 Dec 2019drilling progress report▼ Bad
Green #2 at Lightning reached 15,244 ft TD with logs hinting at more hydrocarbon feet than Green #1, but a stuck tool forced a sidetrack. About 30 more days and US$0.6m net extra cost to Otto (37.5%); Green #1 stays shut in about 70 days total.
26 Nov 2019joint venture update● Neutral
Otto responds to Byron: it declined F4 because volumes look too small to meet its economic hurdles, and prefers the F5 location, for which it holds a best estimate of 1.3 million boe gross. Confirms it will consider F5 when formally proposed.
25 Nov 2019joint venture update▼ Bad
Byron says Otto re-considered, was offered a second chance to join SM71 F4, but declined again on 21 November. Byron will drill F4 100% in January 2020, with the 600% cost recovery before Otto regains its interest. F5 timing is undetermined.
21 Nov 2019other● Neutral
AGM chairman's address: Otto has moved from explorer to producer, with a Macquarie financing in place. Jetter concedes the share price does not reflect the value created and says fixing it is the top priority. Confirms his retirement as chair.
21 Nov 2019investor presentation● Neutral
AGM presentation recapping FY19 achievements, including production of 741,626 boe, 1P reserves up 49% to 3.670 MMboe, and Green #2 in progress. Text is truncated; appears to restate known facts.
18 Nov 2019agm notice● Neutral
Resolutions 5 and 6, performance rights for Allen and Small, are withdrawn from the 21 November AGM at their own recommendation, as they would not accept a performance hurdle below 8 cents. They say the share price undervalues the assets; may be reissued later.
7 Nov 2019drilling result▼ BadMajor
The Mustang exploration well (Thunder Gulch #1, Texas, Hilcorp-operated) is non-commercial after testing produced only small gas volumes and no liquids, and will be plugged. Otto, 37.5%, had pre-test internal estimates of up to 15 BCF and 900 Mbbls. Third dry or failed well in the Hilcorp program.
7 Nov 2019other● Neutral
Notice that a recording of the 6 November investor conference call is on the website. Administrative; no new information.
7 Nov 2019resource reserve update▲ GoodMajor
Maiden Green Canyon 21 (Bulleit) reserves booked: 2P 1.828 MMboe and 3P 2.095 MMboe net to Otto (13.336%). Project is sanctioned and funded via the Macquarie facility, with first production expected late Q3 2020.
4 Nov 2019debt financing▲ GoodMajor
Otto signs a three-year US$55m senior secured Macquarie facility (US$35m committed, US$20m subject to further approval) at LIBOR plus 8%, to fund Green Canyon 21 and Lightning. Macquarie gets 42.5m options at A$0.08, with 42.5m more on drawing Tranche A2. Resolves the long-pending financing.
4 Nov 2019director officer appointment● Neutral
Kaitlin Smith, a chartered accountant, is appointed Company Secretary immediately, following David Rich's August resignation. Otto says it is in the final stages of appointing a Houston CFO as finance functions move from Perth to Houston.
4 Nov 2019investor presentation● Neutral
Notice of a video conference call on 6 November 2019 where the MD will discuss the quarterly report, finance facility and operations. Administrative invitation; no new information.
31 Oct 2019quarterly activities report▲ Good
September quarter sales averaged 2,623 boe/d, up 28%, with revenue up 4% on a full quarter of Lightning; cash US$8.8m (A$12.5m). Mustang test results still due; finance facility execution 'imminent'. Maiden Lightning 2P is stated as 2.235 MMboe net.
21 Oct 2019annual report● Neutral
2019 Annual Report restates the year's Gulf of Mexico discoveries, the move to production and the 5,000 boepd goal by end-2020. Financing package still being negotiated. Text is truncated; no new figures confirmed.
21 Oct 2019annual report● Neutral
Corporate governance statement and Appendix 4G lodged with the 2019 annual report, stating the statement is current at 24 September 2019 and on Otto's website. Administrative compliance filing; no new operational or financial information.
14 Oct 2019director officer appointment● Neutral
Ian Macliver will retire at the 21 November 2019 AGM, earlier than the previously flagged date. Executive director Kevin Small becomes permanent full-time Chief Geophysicist in Houston on US$350,000 a year, replacing his consultancy and director fees.
8 Oct 2019drilling spud▲ GoodMajor
Green #2 development well at Lightning started drilling, reaching 2,800 ft, expected to take 60 days to 15,234 ft MD. Cost US$7.94m gross (US$2.98m net to Otto), to be funded by the pending finance facility; completion early 2020.
4 Oct 2019joint venture update● Neutral
Green #2 at Lightning to spawn this week (US$2.98m net to Otto); Bulleit completion mid-2020, first production late Q3 2020; Mustang testing has begun, about two weeks. Otto confirms it did not consent to SM 71 F4 and is finalising a financing package.
2 Oct 2019joint venture update▼ BadMajor
Byron says Otto elected not to join the SM 71 F4 well, so it will be drilled as a 100% Byron well, expected January 2020 after a compressor upgrade. Byron can recover 600% of certain costs before Otto may regain its interest. Resolves Otto's participation decision.
2 Oct 2019other● NeutralMajor
ASX paused trading in Otto's shares pending a further announcement. No reason is given in the notice.
26 Sept 2019annual report▲ Good
FY19 (to 30 June): production 741,626 boe, up 282%; net revenue US$31.2m versus US$9.5m; EBITDAX US$23.5m. Company reports no debt, with a financing package still in negotiation to cover the development program.
19 Sept 2019resource reserve update▲ GoodMajor
Reserves at 30 June 2019: net 1P up 49% to 3.670 MMboe, 2P 7.103 MMboe, 3P 10.152 MMboe, including maiden Lightning 2P of 2.230 MMboe. Green #2 well due Q4 2019; Bulleit and Mustang bookings pending. Resolves the Lightning reserves wait.
12 Sept 2019investor presentation● Neutral
Good Oil Conference presentation on Otto's non-operated Gulf of Mexico strategy and partnerships. Appears to restate known strategy; text is truncated, so no new figures can be confirmed.
11 Sept 2019director officer appointment● NeutralMajor
Chairman John Jetter will step down as chair at the November 2019 AGM but stay as a director until the 2020 AGM; Ian Boserio, ex-Shell, becomes chair-elect and deputy chair. Ian Macliver will retire once a replacement is found, or by 30 June 2020.
23 Aug 2019director officer appointment● NeutralMajor
CFO and company secretary David Rich resigned and stays until 1 November 2019. Otto will hire a Houston-based CFO and move most finance and accounting functions from Perth to Houston. Rich was named as having helped secure financing arrangements.
22 Aug 2019joint venture update● Neutral
Otto confirms Byron's proposal for SM 71 F4 (step-out) and F5 (development) wells, rig due early October. Otto holds 50% and will decide whether to participate after review next week; the decision is expected within a few weeks.
22 Aug 2019joint venture update▲ Good
Operator Byron proposes two more SM 71 wells, F4 and F5, to extend and better drain the D5 reservoir, with a rig expected early October. Otto's 50% partner will send costs after a 26 August meeting. Continues the SM 71 development story.
14 Aug 2019other● Neutral
Administrative notice that the recording of the 9 August investor call is on Otto's website. No new information.
9 Aug 2019investor presentation● Neutral
Notice and slides for the 9 August investor call on the Bulleit result and June quarterly report. Slides appear to repeat already announced information; the text is truncated.
8 Aug 2019drilling result▲ GoodMajor
Bulleit reached 15,675 ft MD and found about 110 ft TVD of oil pay in the deeper MP sand, on top of the DTR-10 find. But sidetrack and storm delays raise Otto's cost by an estimated US$6.5-7.5m over the US$9.0m pre-drill budget. Otto is in late-stage talks on development financing.
