Past year: ▲ 50%(0.40c – 0.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
20 May 2009drilling spud▲ GoodMajor
Gazzata-1 in Italy's Po Valley spudded on 19 May, targeting over 100 Bcf of prospective gas at about 2,100m. Otto earns 50% by funding it. Kirmizihoyuk-1 in Turkey logged about 15m of gas pay, to be tested. Argentina drilling is due mid June.
13 May 2009drilling spud● Neutral
Kirmizihoyuk-1 spudded on 12 May in the Edirne Licence, Turkey (Otto 35%), planned to 450m and about 12 days. It targets about 0.75 bcf of prospective gas, a small prospect. Result to follow.
5 May 2009farm in farm out agreement▼ BadMajor
Talks with BHP Billiton on farming out SC55 have been discontinued, following the lapse of the heads of agreement on 31 March. Otto plans to seek partners for its Philippine prospects again when market conditions improve. Ends the deal it had valued at about US$150m.
23 Apr 2009drilling scheduled● Neutral
Gazzata-1 in Italy's Po Valley is now expected to spud around mid May 2009 and take about 30 days to drill. Otto earns 50% by funding it. Confirms the timing after earlier deferrals.
3 Apr 2009farm in farm out agreement▼ BadMajor
The BHP Billiton heads of agreement for SC55 lapsed on 31 March as conditions were not met, though talks continue. The capital raising is restructured to up to A$31.5m: entitlement issue cut to 5c, underwriting reduced to A$15.7m, and a second placement at 7c added. Reverses the 20 March plan.
12 Mar 2009farm in farm out agreement● Neutral
Otto clarifies its Asia Oil Week figure: it values the BHP SC55 farm-out at about US$150m, mid-point of its own cost estimates (back costs and 3D US$15-30m, two wells US$100-150m). BHP has not endorsed the figures. Deal still conditional on definitive agreements and approvals.
19 Jan 2009drilling result▲ Good
Partner Incremental reports Ikihoyuk-2 found 27 m of net gas pay over an 87 m interval, about 25% above the pre-drill estimate, with 26% porosity. Not tested yet. Same result Otto reports separately (Otto 35%).
19 Jan 2009drilling result▲ GoodMajor
Ikihoyuk-2 in Turkey reached 500 m and found 27 m of net gas pay between 395 m and 482 m, with 26% porosity. It will be completed for production, not tested now. It is the largest of the six Edirne gas discoveries and is earmarked for early development (Otto 35%).
8 Jan 2009farm in farm out completion▲ GoodMajor
Otto has signed the agreements formalising its Santa Rosa farm-in in Argentina, earning 32.48% (Oromin 67.52%, operator) by funding the first US$1.4m of a US$4.1m work program. Drilling is targeted in the first half of 2009. This resolves the open JV agreement question.
5 Jan 2009drilling spud● Neutral
Ikihoyuk-2 appraisal/development well in Turkey's Edirne licence is due to spud 7 January, to about 500 m. The joint venture defers two exploration wells and the 100 sq km 3D seismic, as they are not needed for first production. First gas sales still second half 2009 (Otto 35%).
30 Dec 2008drilling scheduled▼ BadMajor
Gazzata-1 in Italy's Po Valley is deferred to no earlier than mid-March 2009, from January. Otto asked for the delay until Galoc production is re-established gives more certainty on finances. Otto has already spent over US$2m on equipment and site works. Target is over 100 Bcf prospective gas.
22 Dec 2008farm in farm out agreement▲ GoodMajor
Otto signs a conditional heads of agreement for BHP Billiton to earn 60% of deep-water SC55 by funding 3D seismic and two wells, plus back costs. Otto keeps a carried 25% (down from 85%) and BHP becomes operator. Seismic 2009, drilling 2010. Resolves the SC55 farm-out thread.
2 Oct 2008drilling scheduled● Neutral
Gazzata-1 in Italy's Po Valley is now planned to start in January 2009, rather than the earlier Q4 2008, using a rig that became available early. Slot swapping lets drilling follow Galoc cash flow. Otto funds the well to earn 50%; target c.2400 m.
23 Sept 2008resource reserve update▲ GoodMajor
Otto's own uncertified estimate puts Edirne contingent gas at 8.5 bcf mid case (3.7-14.3 bcf), from six discoveries in six structures, plus 15.7 bcf prospective. First gas still expected mid-2009; Otto estimates US$5-10m a year net (35%).
10 July 2008resource reserve update▲ GoodMajor
An independent report commissioned by operator Oromin puts Santa Rosa's unrisked prospective oil at 45-381 million barrels, most likely 131.6m. It is an unrisked, undrilled wildcat estimate. Otto's farm-in (32.48% for US$1.4m) still awaits due diligence and a JV agreement; drilling is expected Q1 2009.
4 July 2008drilling result▲ Good
Incremental's release of the Arpaci-2A result: three potential gas zones between 160m and 350m, about 20m net gas sands, TD 525m. The lowermost zone (340-348m) will be flow tested shortly. Duplicate of Otto's release.
4 July 2008drilling result▲ GoodMajor
Arpaci-2A, the redrill of Arpaci-2 and last 2008 Edirne well, reached 525m and found three potential gas intervals between 160m and 350m, about 20m net gas sands on preliminary logs. Flow testing of the deepest zone is next (Otto 35%).
15 May 2008drilling result● Neutral
Otto's release on Arpaci-2: gas found at about 169m, but the well was plugged for safety due to high pressure and will be re-drilled. The rig now tests earlier discoveries first. Otto holds 35% of Edirne. Same news as Incremental's release.
15 May 2008drilling result● Neutral
Incremental reports Arpaci-2, the fourth Edirne well, hit gas at about 169m but with high pressure and mud losses. The well was plugged back and will be re-drilled with a changed casing and mud programme in a few weeks, after testing earlier discoveries.
7 May 2008drilling spud▲ Good
Incremental says the six Edirne gas wells drilled to date have found enough gas to proceed to front-end engineering design, with first gas sales expected before mid 2009. Fourth well Arpaci-2 spuds to 480m. Otto's own release follows.
7 May 2008drilling spud▲ Good
Arpaci-2, fourth of five Edirne wells, has spudded as an appraisal well up dip of the Arpaci-1 discovery, to about 480m. Attached Incremental notice says six wells so far justify front-end engineering design, with first gas before mid 2009.
5 May 2008farm in farm out completion▲ GoodMajor
The Santa Rosa licence in Argentina has been awarded for a 6-year exploration period, resolving the long wait. Otto earns 32.48% by spending US$1.4m on two onshore wells, with an option for 41.24% for a further US$897,381. Oromin is operator.
1 May 2008drilling result▲ Good
Incremental reports Ortakci-1 found about 20m of potential net gas pay between 238m and 332m, with 29% porosity. Total depth is 524m. The rig moves next to Arpaci-2. Otto's release on the same result follows.
1 May 2008drilling result▲ GoodMajor
Ortakci-1 found about 20m of net gas pay, Otto's sixth Edirne discovery from six wells since 2004. It lies in the largest mapped structure, so it improves the outlook for western Edirne. Drilling and testing should finish by end June 2008 (Otto 35%).
28 Apr 2008drilling spud● Neutral
Ortakci-1, third of five 2008 Edirne wells, has spudded to about 400m, due early next week. It lies about 8 km west of the five discoveries so far. This is the well first announced on 8 April, delayed behind Kuzey Arpaci-1.
18 Apr 2008drilling result▲ GoodMajor
Kuzey Arpaci-1, second Edirne well, found over 40m of net gas pay between 297m and 505m, more than double what was hoped. Otto calls it its fifth gas discovery in Turkey. The gas fields are close together and could share a central hub (Otto 35%).
18 Apr 2008drilling result▲ Good
Incremental reports Kuzey Arpaci-1 logged more than 40m of net gas pay between 297m and 505m, more than double the pre-drill estimate. Total depth is 540m. Otto's own release on the same result follows.
15 Apr 2008drilling progress report▲ Good
Kuzey Arpaci-1 has become the second well drilled, swapped ahead of Ortakci-1 because of heavy rain. It shows excellent gas sands, with the highest gas readings of the five wells drilled so far. Drilling paused at 460m with a rig fuel pump fault.
8 Apr 2008drilling scheduled● Neutral
Incremental's notice that Ortakci-1, second well of the five-well Edirne campaign, is due to spud the next day to 400m. Otto's own release of the same content follows; nothing new for Otto's 35%.
8 Apr 2008drilling spud● Neutral
Otto's release that the second Edirne well is spudding, with Incremental's notice attached: Ortakci-1, to 400m. The campaign targets 10-20 bcf combined. Later announcements show the well order was changed, so this was not in fact the next well drilled.
