OEL - (Otto) Multi based, Gambling Stock.

[gazprom1]

Hey SM,

I am very comfortable with buying down the curve with OEL - love that old chesnut...it is just time if you buy a stock that is self funding and has cash in the bank. Problem comes with stocks that are trying to get into production and have their SP spanked. Can't raise capital and cannot continue to explore, etc.

I am not a chartist but 7 cents looks like it could be a worst case bottom. OEL has a bigger stake in GALOC now and the FPSO has been altered for better uptime.

[ELYOB]

The trouble is the Philippines never seems to get anything done . Companies on the ground here are all stalled . Not hot on the world patch . BHPP will take their time , and one now has to see what the huge internal review next month comes up with in BHPP . The Philippines may well get canned ! Then where will OEL be .....

[gazprom1]

Agree that BHPP's farm-in to SC55 is up in the air. I believe that part/most of that uncertainty has been priced in...maybe 10/20% downside risk from SC55 not being extended.

However, OEL is netting more than 2000bopd from GALOC. Forecast expenses this quarter are $9.1 million. Revenue will be around $20 million for the current quarter. The FID is coming up re GALOC Phase II and also potentially GALOC North at the end of this quarter. $30 million in the bank and another $10 million by end of June. $40 million in bank with current Mkt Cap of $110 million with $8-10 million net to them every quarter.

While the SP may head lower with general market conditions, OEL can weather any storm with its cash in bamk and ongoing free cashflow. Will continue buying if price softens.

Gazprom

[gazprom1]

Ann y'day that SC55 has been extended for 12 months (BHPP had requested an 18 month extension). Thought that OEL SP may have reacted more strongly than it did (up 2.2% for the day).

Cautiously buying at these levels. Should get the FID re Galoc II by end of June and I believe that the 6 month financials will show a strong quarter and good profitability wit a large cash pile.

Gaz

[shasta]

Ann y'day that SC55 has been extended for 12 months (BHPP had requested an 18 month extension). Thought that OEL SP may have reacted more strongly than it did (up 2.2% for the day).

Cautiously buying at these levels. Should get the FID re Galoc II by end of June and I believe that the 6 month financials will show a strong quarter and good profitability wit a large cash pile.

Gaz

I think it was a given the service contract would be extended & therefore the market pretty much expected it.

Roll on Galoc phase 2 FID!

[gazprom1]

I think it was a given the service contract would be extended & therefore the market pretty much expected it.

Roll on Galoc phase 2 FID!

Hey Shasta,

You are probably right...although the SP is up another 2.2% on top of the corresponding rise on friday. Happy that I have more than I used to. Could be 10 again this week if the markets remain calm.

Gaz

[gazprom1]

Sucked up a few more at 9.3 this afternoon....may hold off for a while now as seems to be downward pressure on the SP and no imminent news expected.

Gaz

[Corporate]

Nice to see a little bit of emphasis in the OEL buying today. I managed to pick up a bunch at 8.2c. Roll on the deep water rig and Galoc phase 2 FID!

[jdg]

hey Corporate, i've bought two more parcels recently too. it all comes down to BHP securing a damn rig. it can't be too far away, surely. the lack of certainty around the drilling SC55 is what's keeping the price so low. i'm picking a 40-50% bounce on that news alone.

-j

[jdg]

three drills next year - if they all happen - should make for an interesting 2013.
here's the latest report if anybody's interested.

http://www.ottoenergy.com/IRM/Compan...imirCapitalLtd

-j