OEL - (Otto) Multi based, Gambling Stock.

[gazprom1]

Hey Corp,

How is the bus trip? Any plans on coming back this way or are you returning to the UK? Just back from Bhutan trekking....awesome. Dom Republic this Thursday with family.

Re OEL, I am disappointed as I thought if they were to sell the lot they may have achieved more but that is me being greedy. Mid/ North Galoc is unknown and would require capital. Agree that Galoc was not going to hot a home run an, like you, I am in for multiples. The timeframe for 1 well at SC55 by December '14 looks too tight to me so not sure how that will shake out. Would need to have rig sorted I would have thought....have they penciled one in?

Elephant hunting in Africa is all well and good but OEL will burn all its cash on a duster (assuming SC55 was drilled) and will be coming to shareholders for capital.

On a risk/ reward basis I am not totally convinced but a find in one of the two would be a game changer.....

Keep up the good work.

cheers
Gaz

[Corporate]

Gaz, glad to hear your travels are going well. I tried to send your a PM a few weeks ago but your inbox was full.

I definitely agree with what you are saying. And as we have said a bold move.

In terms of the current position, we have about A$123m in cash and receivables, subtracting the market cap gives you a negative EV of ~A$13m. This excludes either 1 or 2 Galoc shipments due during July.

So once the capital return is paid (everything else being equal) I expect the market can't to be around A$38m 3cps, with around A$50m in cash. Not a bad position - especially if we have 2 wells line up in sc55 - free carried. Plus the 2015 EARS campaign.

This sale might also put pressure on another bidder for the whole company.

[gazprom1]

Sorry about the PM box being full....cleared some room!!!

Would be good if someone else came out and made a superior offer (a la ROC) - is a possibility. In the meantime, we have potential news on the JV partner for SC55 and timing around the drill to give the SP a lift. Interesting that if the deal is approved by shareholders, any oil produced after 1 July will be Risco's. Hate the retrospective nature of the deals even though shareholder approval is still required.

Keep in touch...would be good to hear your travel news.

Gaz

PS Have made a nice paper profit on AAD - going to continue to hold.

[Rabbi]

The title of this thread sums it up. OEL, having divested it's interest in the Galoc Oil field is now all cashed up with places to go. Now a pure exploration Co. with elephant prospect SC 55 looking likely, as the rig has been commissioned for drilling of this exciting play later in the year. Seismic looks good and chances of success rated at 30% One for those who like a punt.,

[zigzag]

The title of this thread sums it up. OEL, having divested it's interest in the Galoc Oil field is now all cashed up with places to go. Now a pure exploration Co. with elephant prospect SC 55 looking likely, as the rig has been commissioned for drilling of this exciting play later in the year. Seismic looks good and chances of success rated at 30% One for those who like a punt.,

I think I've probably said it before, but after years of studious and diligent research, I finally realised that OTTO rhymes with LOTTO. I have a small holding, just for fun!

[percy]

I think I've probably said it before, but after years of studious and diligent research, I finally realised that OTTO rhymes with LOTTO. I have a small holding, just for fun!

Well I hope it is nothing like my $6 weekly "lucky dip",which comes up every week.."not a winner."! lol.

[Rabbi]

Drilling rig on the way to drill the Hawkeye prospect off the Phillipines, with best estimate 74 mmbo net to Otto. This prospect is rated about a 30% chance of success based on the seismic but on experience of these deep water drills anything could happen and it usually does.

At 12 cents and with 2 months to go plenty of time to jump on board for those not averse to risk.

[gazprom1]

Drilling rig on the way to drill the Hawkeye prospect off the Phillipines, with best estimate 74 mmbo net to Otto. This prospect is rated about a 30% chance of success based on the seismic but on experience of these deep water drills anything could happen and it usually does.

At 12 cents and with 2 months to go plenty of time to jump on board for those not averse to risk.

Hey rabbi

Has been a nice move from 10cents to 12.5/13 cents. More upside pre drill IMHO and then the drill bit will do the talking. It has been frustrating at times with the delay at drilling Cinco and then BHPB withdrawing from the permit. OEL now free carried with a 78%WI - great result.

Gaz

[Rabbi]

Hey rabbi

Has been a nice move from 10cents to 12.5/13 cents. More upside pre drill IMHO and then the drill bit will do the talking. It has been frustrating at times with the delay at drilling Cinco and then BHPB withdrawing from the permit. OEL now free carried with a 78%WI - great result.

Gaz

Only 2 weeks remain before the rig is moved to this promising prospect, rated 30% chance of success OEL in trading halt pending announcement of an acquisition. Exciting times ahead for this junior.

http://www.proactiveinvestors.co.uk...ospect-a-compelling-investment-case-3948.html

[gazprom1]

It has been a good time to be in OEL. SP has been immune from the oil price due to sale of producing asset. Would not really like to see a farmin to a kenyan block due to instability and fiscal regime in kenya. Would prefer a WI in a producing field but this is unlikely. They have said previously that they are looking at increasing interests in EARS.

Gaz