Past year: ▲ 50%(0.40c – 0.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
11 Mar 2019well test result● NeutralMajor
Lightning flow test over 15 hours produced 1.1 MMscf gas and 50 bbl condensate, a yield of 40-45 bbl/MMscf versus 10 in nearby wells. First production slips into Q2 2019 awaiting a pipeline hot tap. Don Julio 2 was dry (ash bed gave a false seismic anomaly); Mustang is next.
7 Mar 2019drilling result● Neutral
Partner Red Emperor repeats the operator's Winx-1 update: total depth 6,800 ft reached 3 March, all targets intersected, wireline logging to start. Duplicates Otto's 6 March release; nothing new for Otto holders.
6 Mar 2019drilling result● Neutral
Winx-1 in Alaska reached 6,800 ft on 3 March, intersecting all pre-drill targets with multiple potential pay zones, including the primary Nanushuk. Wireline logging over about 10 days will decide whether to test. Builds on the 4 March oil shows; no confirmed result yet.
4 Mar 2019drilling result▲ Good
Partner Red Emperor repeats the Winx-1 interim results: oil shows in the primary Nanushuk targets at 4,667-4,901 ft and the Torok at 6,052 ft. Duplicates Otto's same-day update; nothing new for Otto holders.
4 Mar 2019half year report● Neutral
Half-year to 31 Dec 2018: net loss A$4.5m (prior year A$8.3m loss), on net operating revenue A$17.3m from SM 71 (none a year earlier). Exploration spend was A$17.5m. SM 71 passed 1 million barrels and payback; aquifer support noted.
4 Mar 2019drilling result▲ GoodMajor
Winx-1 intersected the primary Nanushuk targets at 4,667-4,901 ft with elevated gas, oil shows and higher resistivity, comparable to a nearby successful well. Otto calls it encouraging but cautions more data is needed. Wireline logging at total depth will decide on testing.
26 Feb 2019drilling progress report● Neutral
Winx-1 passed the blowout preventer inspection and started the intermediate section on 25 February, at about 2,640 ft. Primary Nanushuk targets are at about 4,500 ft. Otto says wireline logging and possibly testing are needed for definitive results.
22 Feb 2019drilling progress report● Neutral
Winx-1 was drilled to about 2,500 ft and surface casing run successfully. Blowout preventer testing comes next, with intermediate section drilling, which reaches the primary Nanushuk target, due week of 25 February. No hydrocarbon result yet.
18 Feb 2019drilling spud● NeutralMajor
Winx-1 in Alaska began drilling on schedule at 15:15 on 15 February 2019 and was at 880 ft by 17 February. Surface casing is planned at about 2,500 ft. Target is 400 MMbbl gross (75 MMbbl net to Otto).
15 Feb 2019investor presentation● Neutral
February 2019 investor presentation. The visible text is only the disclaimer, so no new information can be identified. Presumably it restates known Gulf Coast and Alaska activity (inference).
15 Feb 2019drilling spud● NeutralMajor
Don Julio 2 (Middleton Trust #1), first of four Chambers County Vicksburg wells with Hilcorp, began drilling, targeting ~11,600 ft TVD in about 37 days. Otto earns 35.625% by paying 47.5%, about US$3.53m. Chance of success is 44%; mean 1.46 MMboe net.
6 Feb 2019drilling progress report● Neutral
Nordic Rig #3 began moving to the Winx-1 site on 1 February. Ice road, ice pad and cellar are complete. Spud is scheduled for about 15 February 2019. Otto's net target remains 75 MMbbl of 400 MMbbl gross.
4 Feb 2019drilling result▲ GoodMajor
Lightning (Green #1) reached 15,216 ft TVD and is a commercial discovery with at least 180 ft net pay, well above the pre-drill 31 ft P50. Otto earned 37.5%. Production is expected by end-March 2019. Resolves the open Lightning thread.
31 Jan 2019drilling progress report▲ Good
Winx-1 ice road and pad are substantially complete, conductor installation has begun and rig mobilisation is imminent. Spud is now mid-February 2019, with drilling and testing taking about 50 days if successful. Schedule is slightly firmer than 'mid-late February'.
29 Jan 2019director officer appointment▲ Good
Kevin Small, a Houston-based Gulf Coast specialist with over forty years' experience, joins the board as US-based non-executive director. He continues part-time as Senior Exploration Consultant. This fills the US non-executive director slot flagged earlier.
25 Jan 2019drilling progress report● Neutral
Lightning (Green #1) has set 9⅝" casing at 11,580 ft and is drilling ahead at 12,023 ft toward a 15,500 ft target. Chance of success is 45%, with 4.57 MMboe gross mean prospective resource. Otto's 37.5% share is 1.71 MMboe. No result yet.
24 Jan 2019drilling progress report▲ Good
Winx-1 ice road is about 85% complete and the Nordic Rig #3 passed a third-party inspection with only minor issues. Rig mobilisation is due in roughly seven days and spud remains scheduled for mid-late February 2019. Preparation is on plan.
24 Jan 2019debt financing▲ Good
ASX granted the Listing Rule 10.1 waiver for the Molton convertible note amendment, so no shareholder vote is needed. Otto keeps its option to extend the US$8m notes to 30 June 2020, and cash-use restrictions are lifted to 30 June 2019. Waiver conditions apply.
18 Jan 2019regulatory community update▲ Good
Otto confirms the Winx-1 Permit to Drill was approved on 16 January, the final major permit needed. This closes the open permit thread. Ice road construction is progressing, rig mobilisation is expected in early February, and spud is on schedule for mid-late February 2019.
18 Jan 2019regulatory community update▲ Good
Partner Red Emperor repeats that the Winx-1 Permit to Drill was approved on 16 January, with the ice road almost 50% complete and spud on schedule for mid-late February. It also notes Oil Search's Pikka B well found hydrocarbons in the same Nanushuk formation. No new Otto information.
17 Jan 2019regulatory community update▲ Good
Partner 88 Energy reports the Winx-1 Permit to Drill was approved on 16 January, the last major permit. Ice road is on schedule, rig mobilisation is planned for early February, and spud remains mid-late February. Resolves the open permit thread.
15 Jan 2019production update▲ Good
Byron reports SM 71 passed 1 million barrels of oil gross on 15 January 2019, with no produced water. It says the initial platform, three wells and seismic investment has been recovered. Otto holds 50%, so this confirms payback of the field it co-owns.
7 Jan 2019regulatory community update● Neutral
Partner Red Emperor reports Winx-1 ice road construction has started and the Permit to Drill was submitted on schedule. Spud remains on track for mid-late February 2019. Duplicates Otto's own same-day update; nothing new for Otto holders.
7 Jan 2019regulatory community update● Neutral
Otto says construction of the 11-mile Winx-1 ice road began 2 January and the Permit to Drill was submitted before year-end. Spud is still scheduled for mid-late February 2019. Winx-1 targets 400 MMbbl gross (75 MMbbl net to Otto).
21 Dec 2018director officer appointment● Neutral
Paul Senycia will step down as executive director and Vice President Exploration on 31 December 2018, becoming non-executive director from 1 January 2019. Will Armstrong in Houston takes the exploration role, as Otto moves operations to Houston.
21 Dec 2018production update● Neutral
Byron reports SM 71 gross sales of 2,900 bopd and 7.25 MMcf/d, down from 3,600 bopd in September. Pressure tests show aquifer water support and F1/F3 connected; F2 B55 is stable at 165 bopd. Cumulative production is 928,000 bbl; Byron says payout is expected within one year.
17 Dec 2018regulatory community update▲ Good
Partner Red Emperor reports all major Winx-1 permits granted except the Permit to Drill, expected January 2019, with spud on schedule for February 2019. Repeats Otto's own same-day update on the Alaska well.
17 Dec 2018regulatory community update● Neutral
Partner 88 Energy, as drilling manager, confirms the same Winx-1 permit progress: all major permits granted except the Permit to Drill, with a February 2019 spud. Duplicates Otto's announcement; no new information for Otto holders.
17 Dec 2018regulatory community update▲ Good
Otto says all major permits for Winx-1 are granted except the Permit to Drill, due for submission by year-end with approval expected January. Spud is on schedule for February 2019. Otto pays 25% of costs for its 22.5% interest.
17 Dec 2018debt financing▲ GoodMajor
Otto agreed with noteholders an option to extend Molton's US$8m convertible notes from 30 June 2019 to 30 June 2020, plus a waiver of cash-use restrictions until 30 June 2019. It needs an ASX waiver or shareholder approval by 31 March 2019; fees up to US$400,000.
