OEL - (Otto) Multi based, Gambling Stock. [Archive]

tricha

28-10-2007, 11:29 PM

Data seen to confirm Otto’s big oil, gas prospects

By Abigail L. Ho
Inquirer
Last updated 05:54am (Mla time) 10/20/2007

MANILA, Philippines -- Australian firm Otto Energy Ltd. will start next month interpretation of 950 kilometers of 2D seismic data from the offshore Marantao prospect in west Palawan in preparation for a farm-in agreement to be signed in late 2008 or early 2009, its local partner said.
Trans-Asia Oil and Energy Development Corp., partner of Otto subsidiary NorAsian Energy Ltd. and holder of 15-percent interest in Service Contract 55, said in a disclosure to the Philippine Stock Exchange that the data gathered in June gave initial indications that the Marantao prospect had “potential for a significant oil and/or gas discovery.”
Otto chief executive Alex Parks earlier said that based on preliminary seismic data Service Contract 55 was estimated to contain 1.8 trillion cubic feet (TCF) of gas and 567 million barrels of oil.
If only oil is found in the area, prospective resource estimates are placed at between 320 million and close to 2.7 billion barrels.
If the area contains only gas, the potential yield is estimated at between 721 billion cubic feet (BCF) and 5.6 trillion cubic feet (TCF -- even bigger than the Malampaya gas field’s 3.0 TCF.
And if both oil and gas are found -- similar to that of Malampaya-Camago area -- Otto can expect a yield of between 468 BCF and 3.6 TCF of gas and between 144 million and 1.1 billion barrels of oil.
“Marantao is the jewel in our exploration portfolio in the Philippines, and we are pleased with the prospectivity of this license from the initial 2D seismic data,” Parks said. “Once Otto has a clear understanding of the ultimate potential of the block, select companies will be invited to view the interpretation and commence farm-in negotiations.” With INQUIRER.net

Wysiwyg

29-10-2007, 12:33 PM

Quick question shasta or anyone......Do you think OEL or NDO have the best upside in the Phillipines???????:rolleyes:

ronthepom

29-10-2007, 01:14 PM

Quick question shasta or anyone......Do you think OEL or NDO have the best upside in the Phillipines???????:rolleyes:
I personally think oel, they seem to me to be on the ball, why not have a foot in both camps? well done for picking ndo.

STRAT

29-10-2007, 01:32 PM

Nice going fellas and excellent timing Shasta:D

Wysiwyg

29-10-2007, 01:48 PM

I personally think oel, they seem to me to be on the ball, why not have a foot in both camps? well done for picking ndo.

Yeah ron I opt for OEL too because of the less shares on issue.After the planned capital raising they will have about half or less than what NDO have.Also OEL has similar high impact targets in Phillipines, are near to NDO % (18% v 22%) of Galoc oil field and have Turkey and Argentina.I think they have enough blocks to do something with .

Once the deal is approved at the G.M. of course.

shasta

29-10-2007, 05:59 PM

Yeah ron I opt for OEL too because of the less shares on issue.After the planned capital raising they will have about half or less than what NDO have.Also OEL has similar high impact targets in Phillipines, are near to NDO % (18% v 22%) of Galoc oil field and have Turkey and Argentina.I think they have enough blocks to do something with .

Once the deal is approved at the G.M. of course.

So we get an 18% odd piece of a 23.4mmbo oil field = approx 4mmbo to OEL

Nice - @ $A100bbl thats a cool $400m revenue :D

Nice also to see we have two playmates in Turkey/Phillipines, NDO & IPM

Surprised the SP didnt hold 40c, but tomorrow the news will have filtered thru the market.

tricha

29-10-2007, 09:23 PM

So we get an 18% odd piece of a 23.4mmbo oil field = approx 4mmbo to OEL

Nice - @ $A100bbl thats a cool $400m revenue :D

Nice also to see we have two playmates in Turkey/Phillipines, NDO & IPM

Surprised the SP didnt hold 40c, but tomorrow the news will have filtered thru the market.

Might make up for the disappointment of GDM Shasta. Yes we should see 40 cents tomorrow.

http://www.ottomanenergy.com/media/Euroz%20Securities.pdf

ronthepom

29-10-2007, 09:27 PM

Hi Shasta, dont forget Argentina i was told when i bought in at 18.5c that they were a longer term hold re. argentina. Alec Parkes is a smart cookie!

shasta

29-10-2007, 09:56 PM

Might make up for the disappointment of GDM Shasta. Yes we should see 40 cents tomorrow.

http://www.ottomanenergy.com/media/Euroz%20Securities.pdf

GDM - tell me about it :(

Cairns Hill anybody? :mad:

40c would be nice, but im holding for now

Wysiwyg

29-10-2007, 11:24 PM

Only one part of the comprehensive report by Euroz (my thanks to the contributor tricha) i find misleading and that is this referring to Cuyana Basin in Argentina

A discovery of 1 billion barrels would translate to multiples of OEL’s current share price.

There is enthusism but to suggest a billion barrels is dumb.http://www.clicksmilies.com/s1106/teufel/devil-smiley-037.gif

shasta

30-10-2007, 07:33 AM

Only one part of the comprehensive report by Euroz (my thanks to the contributor tricha) i find misleading and that is this referring to Cuyana Basin in Argentina

There is enthusism but to suggest a billion barrels is dumb.http://www.clicksmilies.com/s1106/teufel/devil-smiley-037.gif

Agree, its getting a bit ahead of themselves....

Lets talk it up as say a 50mmbo potential with upside?

The market would like a surprise if they could shore up a 100mmbo+ reserve.

ead83

30-10-2007, 05:20 PM

shasta

30-10-2007, 06:57 PM

I don't think we'll see OEL at 30c again for a while, unless there is a large correction on the ASX. Did a bit of number crunching, and even after dilution there is great upside.
It's best to think of this acquisition as a hedge against even further dilution later on down the line. Calauit seems to keep getting pushed back, so it was in the company's best interest to secure a piece of a large producing asset which they've done in fine style. :)

Nice quarterly, yet again highlighting the new acquistion...;)

Highlights:

5 drill program in Turkey in Dec for potential 30+BCF Gas targets (OEL35%)

Galoc Oil field (Phillipines) OEL share = Net 4.2mmbo, or 3300bopd (min $A300k per day!)

Cash at end of quarter - $11.2m

Next Quarter Expenditure - $4.5m

Would like to think we won't see 30c again, but am not so sure...

Bring on the Argentine Monster i say :eek:

scorp57

30-10-2007, 08:41 PM

shasta

30-10-2007, 09:33 PM

shasta and friends-

i was impressed with the quarterly and only noticed this company due to this thread. want to jump in with a significant trade of my ZFX holding into OEL, however, just wanted some general opinions and thoughts.

should i wait a little for dilution? or will the phillipines data etc send this one thru the roof.

any ideas?

Like the rest of us, grab your lotto ticket & await the results!

Turkey has some small but meaningful gas revenue on the horizon

Phillipines has the new oil field online Apr & some elephants in the deeper waters waiting for a major to farm in for...

Argentina has a monster target lurking & we should find out if we have the 41% of it & permission to drill during Decemeber (for drilling 2008).

OEL may well drift between 30 & 40c for a while yet, who knows?

ronthepom

30-10-2007, 09:40 PM

Like the rest of us, grab your lotto ticket & await the results!

Turkey has some small but meaningful gas revenue on the horizon

Phillipines has the new oil field online Apr & some elephants in the deeper waters waiting for a major to farm in for...

Argentina has a monster target lurking & we should find out if we have the 41% of it & permission to drill during Decemeber (for drilling 2008).

OEL may well drift between 30 & 40c for a while yet, who knows?
My advice is--Holdem! re. Argentina.

ead83

31-10-2007, 12:06 PM

Nice quarterly, yet again highlighting the new acquistion...;)

Highlights:

5 drill program in Turkey in Dec for potential 30+BCF Gas targets (OEL35%)

Galoc Oil field (Phillipines) OEL share = Net 4.2mmbo, or 3300bopd (min $A300k per day!)

Cash at end of quarter - $11.2m

Next Quarter Expenditure - $4.5m

Would like to think we won't see 30c again, but am not so sure...

Bring on the Argentine Monster i say :eek:

If we do see 30c, i'll be buying plenty more. I got in at an average just under 20c, and the fundamentals just keep improving. In my books, dilution to acquire an asset that will be producing in 6 months and paid back in around 18 months looks like good business for a emerging oiler. OEL is HEAVILY leveraged to success even after dilution, and once Galoc is up and pumping will provide a strong base to grow from.

I remember reading somewhere that OEL are exposed to around 11 drills in the coming 12 months. I can almost guarantee you that we won't be sitting in the 30-40c region once Galoc starts to pump, Argentina is drilled, farmdowns occur & when Calauit starts to progress. As you can probably tell i'm very bullish on OEL's prospects for the next couple of years, all that is needed is some patience :P

shasta

31-10-2007, 06:29 PM

If we do see 30c, i'll be buying plenty more. I got in at an average just under 20c, and the fundamentals just keep improving. In my books, dilution to acquire an asset that will be producing in 6 months and paid back in around 18 months looks like good business for a emerging oiler. OEL is HEAVILY leveraged to success even after dilution, and once Galoc is up and pumping will provide a strong base to grow from.

I remember reading somewhere that OEL are exposed to around 11 drills in the coming 12 months. I can almost guarantee you that we won't be sitting in the 30-40c region once Galoc starts to pump, Argentina is drilled, farmdowns occur & when Calauit starts to progress. As you can probably tell i'm very bullish on OEL's prospects for the next couple of years, all that is needed is some patience :P

Totally agree, OEL is about positioning oneself for the 2008 drilling campaign.

BOW & TEX should provide short term spikes in the meantime.

I think the Euroz broker report is a tad disappointing having made no real effort to value (even on an unrisked/risked basis) the Argentinian permit & the deep water Phillipines acreage.

I believe they have vastly undervalued the "potential" OEL has...

I calculate the "Intrinsic Value" well above there upper valuation, even applying a large discount rate to account for risk.

OEL is on accummulate for me:D

shasta

05-11-2007, 08:43 PM

Courtesy of Jongo (HC)

Announcement out ...

Nido Petroleum Ltd (Nido) is pleased to announce the initial interpretation of the Galoc pilot hole results. The pilot hole programme was completed late on Saturday 3 November and indicates an oil column at the pilot hole location. The reservoir top, the oil-water contact and the indicated reservoir quality appear consistent with the predevelopment studies and will be validated by further petrophysical work in the coming days. Once this initial interpretation has been verified, the details will be the subject of a separate announcement.
The pilot hole was designed to confirm potential reserves in the southern sector of the field by evaluating the reservoir structure and quality in that area and to optimise the location of the Galoc 3 production well. The pilot hole programme included
cutting core, logging, pressure measurements and sampling of reservoir fluids. Deputy Managing Director, Joanne Williams, said “These early results are very
encouraging for the Joint Venture. The pilot hole results correspond well with the pre-development subsurface modelling which reduces reservoir risk and increases
our level of confidence in the subsurface predictions.”
In accordance with the drilling programme, the pilot hole will be plugged back to the 13-3/8 inch casing shoe and sidetracked to drill the Galoc 4 horizontal production well. While Galoc 4 is being drilled, full petrophysical analysis combining the log data with the recovered core from the pilot hole will be used to fine-tune the placement of the Galoc 3 production well.

OEL is in this JV - so tomorrow may be a good one!

shasta

09-11-2007, 06:42 PM

tricha

12-11-2007, 12:34 AM

Nice write up by Wise-Owl on OEL - with a 12 month target of $0.68.

A suggested stop loss of 20c????

Can we break the 40c resistence levels they refer to, yup just a matter of time...

OEL - one to watch in 2008 as it becomes a producer of Oil & Gas

Hmm Shasta, I prefer this write up the title page of the thread. Very interesting little company we have here.

FINALLY
Quote from RM Capital’s research note
“Otto is currently trading at an 84% discount to our base case valuation
of A$1.75 per share..... We consider Otto represents a compelling near
term investment”
Thank you.

Please visit us at our booth at the conference or website at

www.ottoenergy.com

for more information.

yogi-in-oz

13-11-2007, 03:16 AM

:)

Hi folks,

OEL ... as requested, here's some astroanalysis for
the next couple of months:

15-16112007 ... minor, but positive ... 2 cycles here and may be strong,
until around 23112007

27112007 ... positive news expected here

30112007 ... negative aspect ... finance-related???

14-17122007 ... 2 cycles here ... may be significant news.

27122007 ... minor and positive ... finances???

04012008 ... significant and positive news expected here

14012008 ... positive spotlight on OEL ... :)

18-21012008 ... minor cycle

25-31012008 ... minor news ... 2 cycles here ... may trigger
a negative response.

12-14022008 ... 3 cycles ... should be strongest period in February 2008.

14022008 and 2803-01042008 ... should also be the strongest days in March 2008.

happy days

paul

:)

=====

Wysiwyg

13-11-2007, 07:27 AM

shasta

20-11-2007, 06:51 PM

You`re funny paul, but interesing assumptions nevertheless.Your assumptions leave you wide open to criticism but your obscurity makes up for that.Clever.:)

Having been stopped out of PSA & AMU over the last 3 days, i decided to top up on my favourite oiler...:D

35c is pretty cheap when we are getting NDO's Galoc drill updates & we know over 4mmbo of the Galoc oil field is all ours!

Galoc is bigger than NZO's Tui oil field & thats not our biggest target by a long stretch...

Wysiwyg

21-11-2007, 02:52 AM

Having been stopped out of PSA & AMU over the last 3 days, i decided to top up on my favourite oiler...:D

35c is pretty cheap when we are getting NDO's Galoc drill updates & we know over 4mmbo of the Galoc oil field is all ours!

Galoc is bigger than NZO's Tui oil field & thats not our biggest target by a long stretch...

Yes, you would see the obvious accumulation/not yet phase that some stock go through before they run.Like an indeterminable (time wise) pause before running.

shasta

08-12-2007, 06:02 PM

Yes, you would see the obvious accumulation/not yet phase that some stock go through before they run.Like an indeterminable (time wise) pause before running.

Nice ann re the 50% acquistion/farm-in from Ascent Resources for 2 Italian permits in Po Valley (onshore).

Costs of the deal:

1. Minimum contribution to achieve 50% is around $A10m in total.

2. $A3.65m to pay for the sesmic data.

3. By paying 100% costs of the first drill approx $A6m (Gazzata-1) to be drilled in Septmeber 08.

4. Reimburse potential farm in partner Deltana's costs in the permit $A400k

5. On a commercial discovery on the first drill, Otto will fund 100% the costs of drilling of a 2nd well.

6. Deltana has an option to back in a 15% working interest from Otto up to 31 March, on a pro rata basis re costs.(They had an option for 50% with Ascent Resources before this deal)

What i like about the deal...:D

- The price of gas in Italy is around $US10/Mscf (much higher than Australia), meaning discoveries of just 5Bscf are commercial.

- The deal is funded from exisiting & expected cashflows (as Galoc will be in oil production in April)

- The permits are close to existing oil & gas producing fields & with good facilities/infrastructure nearby, (Gas pipes, roading etc)

- Otto are shrewd operators, & by using AVO analysis they have a 100% strike rate in Turkey, the same style analysis used in reviewing the sesmic data for Po Valley.

- There JV partner Ascent Resources has multiple O&G projects across Europe, including Italy.

Once brokers & institutions read this ann & revise valuations we should see a SP north of 40c.

Once again another NO BRAINER, Otto is the real deal

tricha

10-12-2007, 11:31 AM

Shasta - "Once brokers & institutions read this ann & revise valuations we should see a SP north of 40c.

Once again another NO BRAINER, Otto is the real deal "

A very good reports u have put out here on Otto, Shasta. I have been buying more at these very good prices.

ADB

10-12-2007, 11:35 AM

Brief mention of Otto in The Australian
http://www.theaustralian.news.com.au/story/0,25197,22895916-18261,00.html

"Now Otto Energy has added Italy to its international portfolio of Argentina, Turkey and the Philippines. It has picked up the 50 per cent of gas projects in northern Italy from Deltana Energy, whose $16 million IPO fell over. Gas in that part of the world attracts very high prices and the key to the deal was Jaap Poll, who was to have been chairman at Deltana but also sits on the board at Otto. When Deltana faltered, he suggested Otto take on the projects and then stood clear of deliberations to avoid any conflict of interest."

Anybody able to fill in the blanks regarding failed Deltana IPO?

shasta

10-12-2007, 07:30 PM

Interesting developments today with the SSH notices

Santo Holding AG hold 80,000,000 shares or 18.31%, &

Aurora Capital International Ltd - hold 83,000,000 shares or 19%.

Can only be good for Otto to have cornerstone shareholders

boxing_beaver

20-12-2007, 08:15 PM

support levels appear to have been breached today? im no TA expert though..

disc: holding in anticipation of galoc production and exploration upsides

tricha

05-01-2008, 10:51 PM

This is another of my picks in the 2008 comp, it is also a cornerstone of my portilfo, its well worth a read on a lazy Sunday afternoon.

http://www.ottoenergy.com/media/Otto%20Energy%20Investor%20Presentation_17%20Dec%2 007--.pdf

Great management and a quality gambling stock, multi company making opportunties and a multi bagger in the making actually.

yogi-in-oz

06-01-2008, 03:28 PM

:)

Hi folks,

OEL ... as requested, here's some astroanalysis for
the next couple of months:

04012008 ... significant and positive news expected here

14012008 ... positive spotlight on OEL ... :)

18-21012008 ... minor cycle

25-31012008 ... minor news ... 2 cycles here ... may trigger
a negative response.

12-14022008 ... 3 cycles ... should be strongest period in February 2008.

14022008 and 2803-01042008 ... should also be the strongest days in March 2008.

happy days

paul

:)

=====

:)

Hi Tricha,

OEL ... no news yet, but a nice doji candle on Friday and volume up,
just a tad ... so will be alert for some good news early next week,
ahead of a very positive time cycle, around 14012008 ... :)

Figure you have picked winner in the comp with OEL, as it has some
positive aspects in Feb/March 2008 (& more) and it should be BOOMING,
in early-December 2008, as well ... particularly, from 02-10122008 ... !~!

happy trading

paul

:)

=====

shasta

06-01-2008, 04:04 PM

:)

Hi Tricha,

OEL ... no news yet, but a nice doji candle on Friday and volume up,
just a tad ... so will be alert for some good news early next week,
ahead of a very positive time cycle, around 14012008 ... :)

Figure you have picked winner in the comp with OEL, as it has some
positive aspects in Feb/March 2008 (& more) and it should be BOOMING,
in early-December 2008, as well ... particularly, from 02-10122008 ... !~!

happy trading

paul

:)

=====

Glad i picked it too then! :cool:

We shall see, the December dates you quote may well be related to Argentina

ronthepom

06-01-2008, 05:10 PM

Glad i picked it too then! :cool:

We shall see, the December dates you quote may well be related to Argentina

Hi Shasta, you have put your finger on the button re. Argentina according to
my reliable sources, oel is definitely a hold.
Here's hoping.

tricha

06-01-2008, 08:34 PM

:)

Hi Tricha,

OEL ... no news yet, but a nice doji candle on Friday and volume up,
just a tad ... so will be alert for some good news early next week,
ahead of a very positive time cycle, around 14012008 ... :)

Figure you have picked winner in the comp with OEL, as it has some
positive aspects in Feb/March 2008 (& more) and it should be BOOMING,
in early-December 2008, as well ... particularly, from 02-10122008 ... !~!

happy trading

paul

:)

=====

Thanks for that Paul, lets hope so, 6 people have it in their picks, including Shasta:)
I see u settled for GOG, lets hope they come good to, looks like management have a few internal issues.

Cheers Tricha

tricha

07-01-2008, 10:07 PM

shasta

07-01-2008, 10:26 PM

Close to production and tipped by Stockanalysis and Wise Owl.

Not that this had a bearing on buying them, just re-enforces that they are an exceptional opportunity.

http://www.pse.com.ph/html/NewsRoom/memos/2008/MEMO_2008-0011.pdf

2008 is looking huge for OEL :eek:

Feb - Gas exploration drills (5) in Turkey & in production in 2nd half (3 discoveries)

April - Galoc (Phillipines) to come online @ 3300bopd for OEL

Sept - Gas exploration drilling in Italy

SC50 (Phillipines) to come online oil production late 2008 (98% of a 5.9mmbo 2P reserves) @ 12,000bopd

4th Qtr - Oil Drilling in Argentina? :confused:

All exploration & production wells are onshore except the Phillipines projects

...lets not forget SC55 re Marantao "The Monster", maybe for 2009. :D

tricha

08-01-2008, 11:49 PM

8 January 2008
Manager of Company Announcements
Australian Securities Exchange
Level 6, 20 Bridge Street
SYDNEY NSW 2000
By E-Lodgement

Galoc Oil Field Development Update

Australian based oil & gas company Otto Energy (ASX: OEL) is pleased to release
the attached announcement from the Galoc Production Company, operator of the
Galoc Field Development offshore Philippines.
Otto has an indirect 18.28% interest in the Galoc field via a 31.38% shareholding in
Galoc Production Company W.L.L. (“GPC”) which holds a 58.29% working interest in
the Galoc Oil Field. A subsidiary of the Vitol Group (“Vitol”) owning the remaining
stake (68.62 %)
Commenting on the release Alex Parks CEO of Otto Energy said “We are pleased
that the two Galoc development wells have now been successfully drilled. The
provisional analysis of the data, suggests both wells have exceeded pre drill
expectations, however this will be confirmed during the clean up flowing of the wells,
later this month and during start up of production in late March”

For Otto Energy shareholders who would like to remain informed of the progress of
the Galoc Project, please refer to the GPC website and the regular releases on the
Philippines Stock Exchange at www.galoc.com and www.pse.org.ph/ respectively.
Yours faithfully

_________________
Alex Parks
CEO
For further information please contact:

Alex Parks (CEO) Jill Thomas / John Williams
Otto Energy Professional Public Relations
Ph: +61 8 9226 0001 Ph: +61 8 9388 0944

Galoc Production Company WLL
#13-01 The Heeren
260 Orchard Rd
Singapore 238855
Tel: 65 6248 5360, Fax: 65 6248 5370

20080103 – Press Release – G3 Target Depth Page 1 of 2

08 January 2008

Galoc Field Development – Galoc 3 Well Target Depth Reached

Galoc Production Company W.L.L., the Operator of Galoc Field offshore Palawan,
Philippines, is pleased to advise that G3 which is the second of the 2 development
wells, has reached the target measured depth of 4,185m. Completion of the G4
and G3 wells will now be undertaken according to the batched well construction
programme with well clean up following late this month. On Completion of the
well construction activity, installation of subsea equipment will be undertaken to
arrival and hook up of the FPSO.
First oil is expected to be Late March 2008.

Registered Office: National Bank of Bahrain Tower, 18th Floor (181),
Building 113, Government Avenue, Manama Town 316, Bahrain

Registered Branch Office: 3/F 111 Paseo de Roxas Bldg,
Paseo de Roxas cor. Legaspi Sts., Legaspi Village, Makati City, Philippines

Galoc Production Company WLL
#13-01 The Heeren
260 Orchard Rd
Singapore 238855
Tel: 65 6248 5360, Fax: 65 6248 5370

20080103 – Press Release – G3 Target Depth Page 2 of 2

Additional Notes

The Galoc field is located in Service Contract SC14-C (Galoc Sub Block) in 290m
of water approximately 65km north west of Palawan in the Republic of the
Philippines. The development involves the construction of two subsea completed
horizontal production wells, with extended reservoir contacts, tied back to a
Floating Production Storage and Offloading (“FPSO”) facility via a short seabed
pipeline and mid-water riser system. Most likely oil reserves are estimated to be
approximately 10 million barrels. The reserves estimate and requirement for
additional wells and facility capacity will be reassessed following an analysis of
results from both development drilling and initial field production performance.
The participating interests in the Galoc Field are as follows:

Participant Participating Interest %

Galoc Production Company W.L.L. (Operator) 58.29
Nido Petroleum Philippines Pty Ltd 22.28
The Philodrill Corporation 7.02
Oriental Petroleum & Minerals Corporation/
Linapacan Oil Gas & Power Corporation
7.58
Forum Energy Philippines Corporation 2.27
Alcorn Gold Resources Corporation 1.53
PetroEnergy Resources Corporation 1.03
Further information on GPC and the Galoc Field can be obtained from:

• GPC’s website www.galoc.com

• via email at enquiry@galoc.com

• or by contacting
Jeff Davison, Chief Operating Officer
Tel: +65 6248 5360

Registered Office: National Bank of Bahrain Tower, 18th Floor (181),
Building 113, Government Avenue, Manama Town 316, Bahrain

Registered Branch Office: 3/F 111 Paseo de Roxas Bldg,
Paseo de Roxas cor. Legaspi Sts., Legaspi Village, Makati City, Philippines

shasta

14-01-2008, 10:21 PM

Nice joint ann out today by OEL/IPM

Turkey Gas assets looking good & the drilling prospects do too

OEL has all the promise & leverage that say BOW has, plus some monster deep water targets for 2009 & beyond.

OEL lurking in the low 30's is an absolute bargin, refer my earlier posts in this thread.

PS. Good call Yogi!

DYOR

tricha

21-01-2008, 09:17 AM

Otto Energy barrels in with a potential 'elephant' field

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Nigel Wilson, Energy writer | January 21, 2008

IN year-end stock tips, the name Otto Energy came up trumps and as one to watch this year.
Not bad for a company that has no production, and its areas of interest are unknown to most Australian energy sector investors - Italy, Turkey, the Philippines and Argentina.
But for chief executive Alex Parks the backing was not surprising. This year will be the year Otto turns its vision into reality.
It will begin production in the Philippines and in Italy and Turkey and will soon confirm the award of exploration acreage in Argentina.
First oil is expected from its Galoc project in the Philippines in April, which has proven and probable reserves of 23 million barrels, while the Calauit field is appraised with initial oil, expected late in the year.
Calauit's proved and probable reserves are 5.9 million barrels gross. Otto has three other prospects in the Philippines, which it expects to assess for drilling this year, including a potential "elephant" that has a resource potential for several billion barrels of oil or many trillion cubic feet of gas in a new exploration area, offshore from Palawan.
Elephant fields are rare and are generally defined as containing recoverable reserves of 100 million barrels of oil equivalent.
Mr Parks says Otto has used a strategy in the Philippines of taking a large equity interest in acreage and selling down that interest to farm-in partners to fund progress.
It's worked well and this year Otto should receive substantial income from Galoc, which it will use to further assess its other properties. Elsewhere, Otto has three non-operated interests, a low-cost gas field in Turkey close to industrial customers with production slated for later this year, a position in a Po Valley gas field in northern Italy with drilling in September to target more than 100 billion cubic feet of gas, and Argentina, where Otto awaits a permit in an area with a possible 200 million barrels of oil.
Otto says Galoc and Calauit are worth 27c a share and could provide about $70 million net cash this year. For a company with a market capitalisation of about $150 million, that's more than a little encouraging.

ADB

21-01-2008, 09:17 AM

Encouraging coverage of Otto this morning.
http://www.theaustralian.news.com.au/story/0,25197,23081673-643,00.html

shasta

08-02-2008, 03:35 PM

Encouraging coverage of Otto this morning.
http://www.theaustralian.news.com.au/story/0,25197,23081673-643,00.html

OEL starting to move albeit on light volume in anticipation of the Turkish Gas exploration drills (x 4 or 5) commencing this month (along with JV partner IPM).

Remembering they already have gas discoveries from last year ready to go into production late 2008?

Anyone holding OEL or IPM, should view these links...

http://www.ottoenergy.com/media/ASX169.Edirne%20Drilling%20Campaign.pdf

http://www.ottoenergy.com/media/Petroleum%20News%20-%20Perth%20juniors%20anticipate%20Turkish%20deligh t.pdf

OEL also has Galoc oil field (JV with NDO) to come online late March/April, with 2P reserves around 23mmbo expected flow rates to be 15-18,000 bopd, OEL has an 18.28% beneficial interest (approx 4mmbo)

Add to the above the many large O&G targets (Italy, Phillipines & Argentina) that OEL has for drilling in the 2nd half of 2008, & we should see the SP track along nicely into the 40's prior to Galoc coming online.

Peter Strachan picked OEL as one of his two picks for 2008 (source: AFR)

He knows a thing or two about the O&G game!

tricha

10-02-2008, 01:40 AM

Hey Shasta

Why does Nido post this info and Otto don't :confused:

6 February 2008
Company Announcements Office
Australian Stock Exchange Limited
Level 10, Exchange Centre
20 Bond Street
SYDNEY NSW 2000

Galoc Weekly Project Update 30 January to 5 February 2008
Nido Petroleum Ltd (Nido) is pleased to provide this weekly update on the development of the Galoc oil field, offshore Palawan Basin, The Philippines.

Current Operations
The Operator has advised that the technical issues encountered in the completion of the Galoc 3 well have been resolved and the 4.5 inch production tubing has been successfully installed in the well. As per the programme the Galoc 3 well was temporarily plugged on 4 February to allow work to commence on completing the Galoc 4 well.
The Galoc 4 well has been re-entered, internal cleaning of the casing has been completed and preparations are now being made to run the 4.5 inch production tubing.

Forward Plan
The Galoc 4 well completion will be installed as per the programme. This will be followed by the commencement of the cleanup and flow testing programme around 15th February with Galoc 3 following a few days later.

Two Months to First Oil
Following the delay caused to the project during the Galoc 3 completion installation, the project is slightly behind the anticipated schedule. However, the impact has been minimised by the Operator and Nido’s current expectation is for first oil to the FPSO between 28 March and 18 April.
"With the flow tests within the next two weeks and first oil approximately two months away, we are nearing the end of the project development phase with Nido’s first significant production just around the corner."
Aquila Centre Level 3, 1 Preston Street Como WA 6152 P :+61 8 9474 0000 F: +61 8 9474 0099 www.nido.com.au 3rd Floor Paseo de Roxas Building 111 Paseo de Roxas Street Legaspi Village, Makati City MC 3117 Philippines 1229 P: +63 2 817 1681 F: +63 2 817 9978 ASX Code: NDO
A link to the daily drilling updates is provided on the Nido home page www.nido.com.au. Nido will provide the market with a weekly drilling summary each Wednesday and will continue to notify the market immediately of material events throughout the Galoc drilling programme.
Yours sincerely
Joanne Williams
Deputy Managing Director

For more information please contact:

Ms. Joanne Williams
Deputy Managing Director
Ph: +61 8 9474 0000
F: +61 8 9474 0099

www.nido.com.au
Aquila Centre Level 3, 1 Preston Street Como WA 6152 P :+61 8 9474 0000 F: +61 8 9474 0099 www.nido.com.au 3rd Floor Paseo de Roxas Building 111 Paseo de Roxas Street Legaspi Village, Makati City MC 3117 Philippines 1229 P: +63 2 817 1681 F: +63 2 817 9978 ASX Code: NDO

Completing Galoc Development Wells...A Step-by-Step Guide

��Drill wellscompleted

��Galoc 3: Install (run) production completioncompleted

��Galoc 4: Install (run) production completionunderway7 days

3.Galoc 4: Install and test subsea trees and controls3 days

4.Galoc 4: Clean-up and flow test; prepare well for production2 days

5.Galoc 3: Install and test subsea trees and controls2 days

6.Galoc 3: Clean-up and flow test; prepare well for production2 days

7.Release rig1 day

Drill Ship

‘Energy Searcher’

5 & 7

4

1

Oil-Water Contact

Gas-Oil Contact

Seabed (~290m)

Galoc Reservoir (~2,200m)

6

1

2

Galoc 3

Galoc 4

3

Est. Time

Galoc Oil Field…Discovered 1981… Development 2007

��Working Interests:��Nido Petroleum Ltd22.28%

��Galoc Production Company (Operator)58.29%

��Oriental/LOGPOCOR7.57%

��Philodrill Corporation7.02%

��Forum Energy2.27%

��Alcorn Gold Resources1.53%

��Petroenergy Resources Corp.1.03%

Galoc

FACT SHEET

��Location:SC14 Block C, Philippines

��Water Depth:290m

��Discovered:1981

��Geological Setting:Tertiary turbidite sandstone with 57+moil column

��Past Drilling:Two wells plus two sidetracks drilledinto the structure

��Testing:5 month extended well test (1988),produced 385,000 bbl, 35º API oil

��Seismic:3D seismic coverage over field

��Estimated project cost:US$104 million including contingency

��Scheduled First Oil:1Q 2008

��Estimate Initial Production Rate:17,500 bopd

GCA Certified Reservesfor Galoc*

1stPhase

2ndPhase

1P9.7MMstb

3P41.9MMstb

2P23.5MMstb

* Certified by Gaffney Cline & Associates for Nido Petroleum Ltd in November 2006

Drillship ‘Energy Searcher’ on location at Galoc

FPSO
FPSO Mooring Tether
Flowlines&
Umbilicals
Trees

30m
500m
Water Depth 290m

Riser Base
Mooring Base

228m

Courtesy of the Galoc Production Company

Up to 1600m horizontal producing section

shasta

20-02-2008, 02:58 PM

Tricha

Galoc Production Company "GPC" is a non ASX listed company (although listed on the Phillipines stock exchange) & OEL own 31.38% of it.

It has an 18.28% beneficial interest in the JV via it's shareholding in GPC.

Thus it does not have to comply with the ASX disclosure rules in regards to this project.

Agree though, smart management could leverage some more publicity for OEL instead of shareholders having to read NDO anns.

Speaking of anns, nice one out today & some movement in the SP.

http://www.ottoenergy.com/media/ASX175.Galoc%20Oil%20Field%20Development%20Update. pdf

shasta

21-02-2008, 12:45 PM

shasta

21-02-2008, 03:34 PM

Another great ann out today (under NDO ticker)

OEL/NDO look set to run with the Galoc oil project looking good to start production once the 4th well has been flow tested.

http://sa.iguana2.com/cache/fb77e057a2d86a419cbf9681a89275aa/ASX-NDO-396430.pdf

OEL ann (similar to NDO's)

http://sa.iguana2.com/cache/c3784c9ee1e2ba7487d6d7feec22aeea/ASX-OEL-396471.pdf

kura

21-02-2008, 04:01 PM

OEL ann (similar to NDO's)

http://sa.iguana2.com/cache/c3784c9ee1e2ba7487d6d7feec22aeea/ASX-OEL-396471.pdf

When you think about all the things that could go wrong in a project like that, you would think that now we are flowing oil, a lot of the risk would be removed, am surprised that this announcement only lead to a 1 cent price increase.

shasta

21-02-2008, 04:04 PM

When you think about all the things that could go wrong in a project like that, you would think that now we are flowing oil, a lot of the risk would be removed, am surprised that this announcement only lead to a 1 cent price increase.

We did hit 33c (+10%) earlier but the same ann sees NDO up 15% :confused:

NDO has around 22% of the Galoc project to OEL's 18% in the JV, but surely OEL has the better leverage, less shares & more potential IMO.

tricha

21-02-2008, 09:33 PM

When you think about all the things that could go wrong in a project like that, you would think that now we are flowing oil, a lot of the risk would be removed, am surprised that this announcement only lead to a 1 cent price increase.

Maybe it has a little of AED stigma attached, people are waiting to see the pudding so to speak.
And to be fair, the company isn't ramping it, so there is going to more upside.
Has to be one of the cheapest oilers in the market. We will all find out in April :)

shasta

22-02-2008, 05:19 PM

Maybe it has a little of AED stigma attached, people are waiting to see the pudding so to speak.
And to be fair, the company isn't ramping it, so there is going to more upside.
Has to be one of the cheapest oilers in the market. We will all find out in April :)

We seem to be having a hard time holding/breaching 32c at present

3 relatively heavy days trading, well above normal turnover.

Support building for a run next week, or accummulation phase going on?

Hopefully some good flow rates from the Galoc-4 well next week will stimulate some activity.

tricha

23-02-2008, 12:15 AM

We seem to be having a hard time holding/breaching 32c at present

3 relatively heavy days trading, well above normal turnover.

Support building for a run next week, or accummulation phase going on?

Hopefully some good flow rates from the Galoc-4 well next week will stimulate some activity.

Looking at the depth at the of trade, yes, support building quite nicely.
Buyers queing up and great turnover.

https://ost.asbbank.co.nz/images/spacer.gif

shasta

25-02-2008, 01:20 PM

Looking at the depth at the of trade, yes, support building quite nicely.
Buyers queing up and great turnover.

https://ost.asbbank.co.nz/images/spacer.gif

Latest weekly Galoc update re Galoc-4

http://sa.iguana2.com/cache/7003ca93e55f4d0b6aff72c4c62c3016/ASX-OEL-396733.pdf

shasta

25-02-2008, 07:08 PM

Latest weekly Galoc update re Galoc-4

http://sa.iguana2.com/cache/7003ca93e55f4d0b6aff72c4c62c3016/ASX-OEL-396733.pdf

The cheeky sods....

I see IPM have issued the same ann as OEL, now whilst they are gas buddies over in Turkey, IPM have NOTHING to do with the Galoc oil field JV

A cheeky & cheap ploy to try & steal Otto's thunder...:eek:

I see it's been retracted :D

tricha

26-02-2008, 12:20 PM

http://www.asx.com.au/asxpdf/20080226/pdf/317nm71yxg7bdj.pdf

shasta

26-02-2008, 12:41 PM

http://www.asx.com.au/asxpdf/20080226/pdf/317nm71yxg7bdj.pdf

Luffly jubbly, now for the revised flow rates (maybe 20,000bopd?) & a reserve upgrade & OEL will grow wings...:D

tricha

26-02-2008, 10:26 PM

So is Otto on the Short list :confused: Shasta

It does not really matter, the good thing today is 6.5 million shares got cleaned out.:)
And the news out today is outstanding.:D

ASX / Media Announcement
26th February 2008

Galoc Oil Field Development Update, Philippines.
Galoc-4 successfully flows oil at over 6,000 bopd.

• Galoc-4 well has been flow tested at a stabilised rate of
approximately 6,150 barrels of oil per day (bopd)

• The well is now ready for connection to the FPSO for first
commercial oil production in April 2008

Otto has an indirect 18.28% interest in the Galoc field via a 31.38%
shareholding in Galoc Production Company W.L.L. (“GPC”) which holds
a 58.29% working interest in the Galoc Oil Field. A subsidiary of the
Vitol Group (“Vitol”) owning the remaining stake (68.62 %)
The Galoc-4 well has now been cleaned up at dry oil flow rates of up to
6,150, bopd on a 52/64” inch (20.6mm) choke. This rate was
deliberately constrained to optimise data gathering and sampling.

The
expected initial rate from Galoc-4 when the field comes on full
production is expected to be higher than this test rate.

CEO of Otto Energy Alex Parks, said:

“Otto is extremely pleased with the results from both Galoc wells.
Analysis of the clean up flow from the Galoc-4 well has shown it is the
best of the two development wells and both are at the high end of the
pre drill expectations”

There have been some weather and operational related delays during
the drilling, but nothing particularly out of the ordinary for development
projects of this nature. The cost of the delays to Otto should be less
than US$2 million, which is a testament to GPC running a well managed
operation.
For Otto Energy shareholders who would like to remain informed of the
progress of the Galoc Project on a daily basis, please refer to the GPC
website and the regular releases on the Philippines Stock Exchange at

www.galoc.com and www.pse.org.ph/ respectively.
Yours faithfully

_________________
Alex Parks
CEO

shasta

26-02-2008, 10:37 PM

So is Otto on the Short list :confused: Shasta

It does not really matter, the good thing today is 6.5 million shares got cleaned out.:)
And the news out today is outstanding.:D

ASX / Media Announcement
26th February 2008
Galoc Oil Field Development Update, Philippines.
Galoc-4 successfully flows oil at over 6,000 bopd.

•

Galoc-4 well has been flow tested at a stabilised rate of

approximately 6,150 barrels of oil per day (bopd)

•

The well is now ready for connection to the FPSO for first

commercial oil production in April 2008
Otto has an indirect 18.28% interest in the Galoc field via a 31.38%
shareholding in Galoc Production Company W.L.L. (“GPC”) which holds
a 58.29% working interest in the Galoc Oil Field. A subsidiary of the
Vitol Group (“Vitol”) owning the remaining stake (68.62 %)
The Galoc-4 well has now been cleaned up at dry oil flow rates of up to
6,150, bopd on a 52/64” inch (20.6mm) choke. This rate was
deliberately constrained to optimise data gathering and sampling.

The
expected initial rate from Galoc-4 when the field comes on full
production is expected to be higher than this test rate.

CEO of Otto Energy Alex Parks, said:
“Otto is extremely pleased with the results from both Galoc wells.
Analysis of the clean up flow from the Galoc-4 well has shown it is the
best of the two development wells and both are at the high end of the
pre drill expectations”

There have been some weather and operational related delays during
the drilling, but nothing particularly out of the ordinary for development
projects of this nature. The cost of the delays to Otto should be less
than US$2 million, which is a testament to GPC running a well managed
operation.
For Otto Energy shareholders who would like to remain informed of the
progress of the Galoc Project on a daily basis, please refer to the GPC
website and the regular releases on the Philippines Stock Exchange at
www.galoc.com (http://www.galoc.com)

and www.pse.org.ph/ respectively.

Yours faithfully
_________________
Alex Parks
CEO

Appers not, although i see NDO is!

tricha

04-03-2008, 09:54 PM

When a director buys this amount of shares at this price, he must be pretty sure of where Otto is heading.

4 March 2008

Change in Director’s Interest

Please find attached Appendix 3Y Change in Director’s Interest Notice for
Mr John Jetter.
Yours faithfully

Emma McCormack
Company Secretary

Appendix 3Y
Change of Director’s Interest Notice

+ See chapter 19 for defined terms.
30/9/2001 Appendix 3Y Page 1

Rule 3.19A.2

Appendix 3Y

Change of Director’s Interest Notice

Information or documents not available now must be given to ASX as soon as available. Information and
documents given to ASX become ASX’s property and may be made public.

Introduced 30/9/2001.

Name of entity OTTO ENERGY LIMITED
ABN 56 107 555 046

We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the
director for the purposes of section 205G of the Corporations Act.

Name of Director John Jetter

Date of last notice 31 January 2008

Part 1 - Change of director’s relevant interests in securities

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Direct or indirect interest Indirect

Nature of indirect interest
(including registered holder)

Note: Provide details of the circumstances giving rise to
the relevant interest.

JB Jetter Consultants Limited - Director and
Shareholder
HSBC Custody Nominees (Australia) Ltd – Beneficiary
JP Morgan Chase Bank -Nominee Account- Beneficiary

Date of change 29 February 2008

No. of securities held prior to change JB Jetter Consultants Limited

3,000,000 ordinary fully paid shares; and
6,000,000 Director Options (30 cents, 25 Jan 2011)

HSBC Custody Nominees (Australia) Ltd

300,000 ordinary fully paid shares

Class Ordinary fully paid shares

Number acquired 2,500,000 ordinary fully paid shares

Number disposed Nil

Value/Consideration

Note: If consideration is non-cash, provide details and
estimated valuation

On-market acquisition at $0.3297 per share.

Appendix 3Y
Change of Director’s Interest Notice

+ See chapter 19 for defined terms.
Appendix 3Y Page 2 30/9/2001

No. of securities held after change JB Jetter Consultants Limited

3,000,000 ordinary fully paid shares; and
6,000,000 Director Options (30 cents, 25 Jan 2011)

HSBC Custody Nominees (Australia) Ltd

300,000 ordinary fully paid shares

JP Morgan Chase Bank – Nominee Account

2,500,000 ordinary fully paid shares

Nature of change

Example: on-market trade, off-market trade, exercise of
options, issue of securities under dividend reinvestment
plan, participation in buy-back

On-market trade

Part 2 – Change of director’s interests in contracts

Detail of contract N/A

Nature of interest

N/A

Name of registered holder
(if issued securities)

N/A

Date of change N/A

No. and class of securities to which
interest related prior to change

Note: Details are only required for a contract in
relation to which the interest has changed

N/A

Interest acquired N/A

Interest disposed N/A

Value/Consideration

Note: If consideration is non-cash, provide details
and an estimated valuation

N/A

Interest after change N/A

Date of this Notice: 4 March 2008

boxing_beaver

04-03-2008, 10:10 PM

yes, this is a significant buy-up - very positive announcement.

patiently holding

tricha

05-03-2008, 07:24 PM

yes, this is a significant buy-up - very positive announcement.

patiently holding

Patience is the key, another month or so till the Black Gold flows.

ASX Code: NDO

5 March 2008
Company Announcements Office
Australian Stock Exchange Limited
Level 10, Exchange Centre
20 Bond Street
SYDNEY NSW 2000

Galoc Weekly Project Update
28 February to 4 March 2008

Nido Petroleum Ltd (Nido) is pleased to provide this weekly update on the
development of the Galoc oil field, offshore Palawan Basin, The Philippines.

Installation Vessel on Location

The Operator, the Galoc Production Company (GPC), advised that the installation
vessel ‘Lewak Champion’ arrived the at Galoc field on Sunday, 2 March 2008.
The vessel is currently making preparations for the installation of the subsea mooring
and riser system that will link the Galoc 3 and 4 wells to the FPSO ‘Rubicon Intrepid’.

Drill Ship Demobilising

The drill ship ‘Energy Searcher’ is currently under sail and is expected to arrive in
Singapore on 6 March 2008 where it will unload Galoc equipment and materials. It
will then be released from service to the project.
A link to the daily drilling updates is provided on the Nido home page

www.nido.com.au. Nido will provide the market with a weekly drilling summary each
Wednesday and will continue to notify the market immediately of material events
throughout the Galoc drilling programme.
Yours sincerely

Joanne Williams

Deputy Managing Director

For more information please contact:

Ms. Joanne Williams
Deputy Managing Director
Ph: +61 8 9474 0000
F: +61 8 9474 0099

www.nido.com.au

shasta

05-03-2008, 07:31 PM

Patience is the key, another month or so till the Black Gold flows.

ASX Code: NDO
5 March 2008
Company Announcements Office
Australian Stock Exchange Limited
Level 10, Exchange Centre
20 Bond Street
SYDNEY NSW 2000
Galoc Weekly Project Update
28 February to 4 March 2008
Nido Petroleum Ltd (Nido) is pleased to provide this weekly update on the
development of the Galoc oil field, offshore Palawan Basin, The Philippines.

Installation Vessel on Location
The Operator, the Galoc Production Company (GPC), advised that the installation
vessel ‘Lewak Champion’ arrived the at Galoc field on Sunday, 2 March 2008.
The vessel is currently making preparations for the installation of the subsea mooring
and riser system that will link the Galoc 3 and 4 wells to the FPSO ‘Rubicon Intrepid’.
Drill Ship Demobilising
The drill ship ‘Energy Searcher’ is currently under sail and is expected to arrive in
Singapore on 6 March 2008 where it will unload Galoc equipment and materials. It
will then be released from service to the project.
A link to the daily drilling updates is provided on the Nido home page

www.nido.com.au (http://www.nido.com.au)

. Nido will provide the market with a weekly drilling summary each

Wednesday and will continue to notify the market immediately of material events
throughout the Galoc drilling programme.
Yours sincerely
Joanne Williams
Deputy Managing Director
For more information please contact:
Ms. Joanne Williams
Deputy Managing Director
Ph: +61 8 9474 0000
F: +61 8 9474 0099
www.nido.com.au (http://www.nido.com.au)

Exciting aye Tricha?

Now for the upgrade to come...:D

tricha

05-03-2008, 08:15 PM

Exciting aye Tricha?

Now for the upgrade to come...:D

[/left]

Yeah got to have a win sometime soon would be nice.:)

Hey Shasta I think the Sharemeeting in ChCh is on this Saturday, any chance you would be going ?

shasta

05-03-2008, 08:20 PM

Yeah got to have a win sometime soon would be nice.:)

Hey Shasta I think the Sharemeeting in ChCh is on this Saturday, any chance you would be going ?

If it's this Saturday i can't make it, though have "promised" to make both an Auckland & Christchurch event this year...

I'm waiting for either ADY/OEL or URA to run before holding the next Wellington event, your most welcome to come up to the nations capital!

shasta

12-03-2008, 11:54 AM

If it's this Saturday i can't make it, though have "promised" to make both an Auckland & Christchurch event this year...

I'm waiting for either ADY/OEL or URA to run before holding the next Wellington event, your most welcome to come up to the nations capital!

http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10497648

OEL's oil will be sold at a small discount to the Brent price (currently $US105.25).

Less than a month away from approx ~3300 bopd (@ say $US90/$A100/bbl) = $A330,000 per day revenue...

I'm loving it, the oil is flowing at the very time the POO is set to rise :D

After the impressive Galoc 3 & Galoc 4 - flow tests, it seems the daily flow rate will be choked back to 17,500/18,000 bopd.

Can't wait for Calauit to come online later in the year, (OEL has 98%) of P2 reserves of 5.9mmbo (anticipated flow rate ~ 12,000 bopd)

By year end OEL should have net 15,000 bopd flowing...:eek:

shasta

13-03-2008, 05:49 PM

http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10497648

OEL's oil will be sold at a small discount to the Brent price (currently $US105.25).

Less than a month away from approx ~3300 bopd (@ say $US90/$A100/bbl) = $A330,000 per day revenue...

I'm loving it, the oil is flowing at the very time the POO is set to rise :D

After the impressive Galoc 3 & Galoc 4 - flow tests, it seems the daily flow rate will be choked back to 17,500/18,000 bopd.

Can't wait for Calauit to come online later in the year, (OEL has 98%) of P2 reserves of 5.9mmbo (anticipated flow rate ~ 12,000 bopd)

By year end OEL should have net 15,000 bopd flowing...:eek:

Galoc update out today...

http://sa.iguana2.com/cache/ee8ffc6c161ec96bb07679cef5b4b6a1/ASX-NDO-398944.pdf

Nice pictures on page 2, else not much of interest.

Seems to be all on schedule & ready to come online in 2 - 3 weeks. :)

tricha

13-03-2008, 09:55 PM

Galoc update out today...

http://sa.iguana2.com/cache/ee8ffc6c161ec96bb07679cef5b4b6a1/ASX-NDO-398944.pdf

Nice pictures on page 2, else not much of interest.

Seems to be all on schedule & ready to come online in 2 - 3 weeks. :)

Lets hope they can do a Tui and get it right Shasta, anything else and like everything in the market at the moment and they will be punished.

Disclosure - hold 100,000 and selling none. Will take the risk\reward scenaro ;)

P.S Hey Shasta do not know what happened to the ChCh sharemeeting, but next one in May, be great to catch up.

shasta

13-03-2008, 10:13 PM

Lets hope they can do a Tui and get it right Shasta, anything else and like everything in the market at the moment and they will be punished.

Disclosure - hold 100,000 and selling none. Will take the risk\reward scenaro ;)

P.S Hey Shasta do not know what happened to the ChCh sharemeeting, but next one in May, be great to catch up.

I believe OEL with Galoc will do something similar to what NZO did re Tui.

I expect flow rates to be choked back to around 17,500 - 18,000 bopd & maintained longer than expected, with minimal water cut.

I expect Galoc will be upgraded as well, however like you say, any problems it will get smashed, although OEL has minimal debt & plenty of $$

The market likes certainty of cashflows & pleasant surprises!

Don't forget the Turkish gas assets that are being drilled, about now?

I'm keeping an eye on both NDO & IPM, re any corporate activity etc.

Will do my very best to get down to Chch for the May event.

I've been off work for 4 months rehabbing a back injury, & still receiving treatment/physio. :(

Serpie

13-03-2008, 10:25 PM

P.S Hey Shasta do not know what happened to the ChCh sharemeeting, but next one in May, be great to catch up.

ChCh meetings have always been the week after the ASX quarterlies Tricha. Feb/May/Aug/Nov. Always plenty to talk about at those times. Next one beginning of May, possibly to be hosted by Bermuda.

shasta

13-03-2008, 10:30 PM

ChCh meetings have always been the week after the ASX quarterlies Tricha. Feb/May/Aug/Nov. Always plenty to talk about at those times. Next one beginning of May, possibly to be hosted by Bermuda.

I should be back to health & employment sometime early April, so shall endeavour to make the May meeting.

Would be good to catch up again Serpie...:cool:

Misc

14-03-2008, 09:28 PM

"I believe OEL with Galoc will do something similar to what NZO did re Tui"

Are you expecting a SP retreat like NZO and PPP after Tui flowed?

Misc

tricha

15-03-2008, 12:15 AM

"I believe OEL with Galoc will do something similar to what NZO did re Tui"

Are you expecting a SP retreat like NZO and PPP after Tui flowed?

Misc

Tui would be $2.00 if the market had not tanked, Otto would be at least 50 cents.
But hey it is now and Mr Market is very angry, who knows.

http://cb.iguana2.com/stockness/hist2/ASX/NZO/1y/line/30/0/

shasta

15-03-2008, 07:51 PM

"I believe OEL with Galoc will do something similar to what NZO did re Tui"

Are you expecting a SP retreat like NZO and PPP after Tui flowed?

Misc

Misc

NZO's management were notorious for the way they treated there shareholders (& trust me i was one for 3 years!), & putting there snouts in the trough.

Forget the state of the markets at present (otherwise like Tricha said, both NZO & OEL would be on much higher SP's), but sentiment has affected NZO, due to it's past.

OEL's management is VERY good, & the Board is outstanding.

My point on that comparison is:

1. The Tui JV - largely achieved the flow rates anticipated
2. The total reserves were upgraded (now twice)
3. Water cut has been kept in check, & may even be better than expected.
4. Successfully choking back the flow rate has ensured the longevity of the project.

The Galoc JV looks to be in the same position regarding points #1, 3 & 4.

#2 remains to be seen, though i believe Galoc will be upgraded beyond the anticipated 2P reserves (around 23.5mmbo).

OEL has come out & done what NZO should have months ago.

Tell your shareholders what you intend using the cashflows for!

Come the end of 2008 when Calauit is online, OEL will have more than double the daily oil that NZO has, (5000 - 6000bopd) v OEL (3000 Galoc + 12000 Calauit).

Best bit is we paid $US9.20/bbl (including debt) for the Galoc acquistion when the POO was around $US75.

The Galoc oil will be sold at a small discount to the Brent price (currently around $US100).

I've assumed around $US90 = $A100/bbl in my previous revenue calculations, so there is some upside should the POO remain above $US90.

The rising $A v the $US, counters some of the upside however.

The above is why i sold NZO & bought OEL among others...:cool:

Misc

15-03-2008, 08:31 PM

Fair enough. The likely drilling of Galoc 5 and 6 next year should help as well. Just hope their SP doesnt catch the 'tui bird flu' .Misc

shasta

15-03-2008, 08:49 PM

Fair enough. The likely drilling of Galoc 5 and 6 next year should help as well. Just hope their SP doesnt catch the 'tui bird flu' .Misc

At the moment OEL's SP is suffering due to the large placement @ 30c to fund the Galoc acquistion.

As soon as the share price hits 34c the sellers show up & put a dampner on it...

For now we seem to be in a rather tight 30 - 34c trading range

shasta

15-03-2008, 11:06 PM

Just when everything was lining up nicely...

I hope the market in general doesnt see this article...

http://www.abs-cbnnews.com/storypage.aspx?StoryId=112176

Otto Energy sees first oil in Philippines in April

Reuters

SINGAPORE - Australia-based Otto Energy Ltd. will see its first oil field come onstream in April in the Philippines, but it has deferred the start of the Calauit field to end-2009 at the earliest, the head of the company said on Friday.

First oil from the 17,500 barrel-per-day (bpd) Galoc field, which will boost the Philippines' small oil production by around 70 percent, is expected to be on target in the third week of April, Alex Parks, the firm's chief executive, told Reuters in a telephone interview.

But Otto's Calauit field, initially expected to come onstream in December 2007, or this quarter, will not start production until at least 2009 as the company decided last year it needed further information on the reservoir.

"Production will start late 2009 or early 2010. That's because we are doing it in a different way," Park said, referring to how the field will be developed.

skyhigh

16-03-2008, 07:45 PM

first timer, small holder of oel
shasta how do u see this announcement (re last posting) affecting the shareprice
would love to hear your thoughts, cheers

shasta

16-03-2008, 08:33 PM

first timer, small holder of oel
shasta how do u see this announcement (re last posting) affecting the shareprice
would love to hear your thoughts, cheers

I hope the general market doesn't catch wind of it, to be honest.

Friday was down on the DOW, so in this environment any bad news/delays/cost overruns seem to get lashed by the market.

We don't want to repeat the problems that AED had (with 100% of Puffin) & not get it right.

This would be a big project where OEL is the operator (having 99% of Calauit), & it is probably prudent to re-assess things prior to fully committing to it.

I would like to see OEL farm down to 50% of Calauit to reduce the risk.

In the short term i expect OEL to do well when Galoc comes online during April, & we should see a SP north of 40c.

Of course if the US goes down the drain (& it's heading that way) then the market may overlook OEL.

At present OEL has strong support at 30c, which is the price the large placement was priced at.

Misc

16-03-2008, 10:59 PM

shasta

16-03-2008, 11:42 PM

Oh dear! Just read the last quarterly which stated Calauit would start later this year. Now 6 weeks later its slipped out to 2010? And this market sensitive 'event' has been 'released' via the media? Surely the ASX will have something to say about this?
I also notice 16m shares will come out of escrow next week. Are these from the 30c placement Shasta? I thought they were escrowed for 12 months? All abit smelly and confusing to me.

Misc

Misc

The ASX couldn't organise a p*** up in a brewery.

A 12 month "delay" in Calauit is a surprise to me & the market should have been advised.

Part of the shares issued for the Galoc aquistion were to be held in escrow "voluntarily", although the shares you mentioned aren't & relate to...

http://www.ottoenergy.com/media/ASX112.Otto%20Welcomes%20Two%20Swiss%20Institution s%20to%20its%20Register.pdf

I doubt whether these shares would be "up for sale" just yet.

shasta

19-03-2008, 04:39 PM

Misc

The ASX couldn't organise a p*** up in a brewery.

A 12 month "delay" in Calauit is a surprise to me & the market should have been advised.

Part of the shares issued for the Galoc aquistion were to be held in escrow "voluntarily", although the shares you mentioned aren't & relate to...

http://www.ottoenergy.com/media/ASX112.Otto%20Welcomes%20Two%20Swiss%20Institution s%20to%20its%20Register.pdf

I doubt whether these shares would be "up for sale" just yet.

http://sa.iguana2.com/cache/c0ac968ef52afef855c5c67089d17dc9/ASX-NDO-399779.pdf

This ann surprised me a bit, Nido (NDO) have appointed Trafigura to market & sell there share of the Galoc oil.

No mention of Otto Energy (OEL).

I wonder if "GPC" (Galoc Production Company) has already done this, or is in the process of?

shasta

19-03-2008, 05:35 PM

http://sa.iguana2.com/cache/c0ac968ef52afef855c5c67089d17dc9/ASX-NDO-399779.pdf

This ann surprised me a bit, Nido (NDO) have appointed Trafigura to market & sell there share of the Galoc oil.

No mention of Otto Energy (OEL).

I wonder if "GPC" (Galoc Production Company) has already done this, or is in the process of?

http://sa.iguana2.com/cache/1daede355d23270f84422d1aa2c84a89/ASX-NDO-399786.pdf

Weekly Galoc update - these will cease now & only material events will be announced.

We must be getting very close to first oil :D

tricha

20-03-2008, 06:40 PM

shasta

20-03-2008, 07:53 PM

http://www.ottoenergy.com/media/Otto%20Energy%20Investor%20Presentation-%20Euroz%20Conference%20March%202008.pdf (http://www.ottoenergy.com/media/Otto%20Energy%20Investor%20Presentation-%20Euroz%20Conference%20March%202008.pdf)

Thank Tricha

Otto's goals...

"Grow to a multi $billion market cap & be recognised as an independent oil company..."

NICE :D

Wysiwyg

20-03-2008, 10:53 PM

Yeah thanks for that report tricha.Looks like OEL are warming to the task.Gets one dreaming with the prospects on paper but expectations and reality meet somewhere eventually.There was one line in that report that really stood out for me and that was "retaining meaningful project equity interests".

Plus 3000 barrels of crude oil per day is a nice interest first up.;)
Pity investor confidence is slipping away (this is when the smarties buy in :p ) maybe.:cool:

shasta

26-03-2008, 09:19 PM

tricha

26-03-2008, 09:36 PM

Galoc update courtesy of NDO

http://stocknessmonster.com/news-item?S=NDO&E=ASX&N=400295

Not far away from the black gold now...:cool:

Shes a weird market Shasta, toppd up some more today on Otto's weakness, the market has a short memory on Otto.
topped up on ARQ yesterday and NXS last week.
Used ADY's proceeds to do it, I hope it comes good for u Shasta, but at 60% of your holdings, immm.
But they do have billions worth of Lithium etc, u never know.

Cheers Tricha

shasta

26-03-2008, 09:41 PM

Shes a weird market Shasta, toppd up some more today on Otto's weakness, the market has a short memory on Otto.
topped up on ARQ yesterday and NXS last week.
Used ADY's proceeds to do it, I hope it comes good for u Shasta, but at 60% of your holdings, immm.
But they do have billions worth of Lithium etc, u never know.

Cheers Tricha

I should be adding more oilers to the stable, i know. :confused:

Except i'm looking at alternatives like LNC, ESI & CLQ ...

Am still looking at NWE, STX, PSA, AMU (all previously held) + BOW, NXS & MOS.

OEL is only 20% of total funds, so am light in oilers...

shasta

27-03-2008, 02:29 PM

I should be adding more oilers to the stable, i know. :confused:

Except i'm looking at alternatives like LNC, ESI & CLQ ...

Am still looking at NWE, STX, PSA, AMU (all previously held) + BOW, NXS & MOS.

OEL is only 20% of total funds, so am light in oilers...

OEL spuds the first of 5 wells in Turkey...

http://stocknessmonster.com/news-item?S=OEL&E=ASX&N=400318

shasta

27-03-2008, 02:48 PM

OEL spuds the first of 5 wells in Turkey...

http://stocknessmonster.com/news-item?S=OEL&E=ASX&N=400318

I like IPM's ann better, nice graphs too

http://stocknessmonster.com/news-item?S=IPM&E=ASX&N=400320

shasta

28-03-2008, 01:47 PM

I like IPM's ann better, nice graphs too

http://stocknessmonster.com/news-item?S=IPM&E=ASX&N=400320

Nice market update, with "first oil" approaching us...:D

Good rundown for those who perhaps don't know about OEL's other projects.

http://stocknessmonster.com/news-item?S=OEL&E=ASX&N=400482

tricha

29-03-2008, 12:25 AM

Nice market update, with "first oil" approaching us...:D

Good rundown for those who perhaps don't know about OEL's other projects.

http://stocknessmonster.com/news-item?S=OEL&E=ASX&N=400482

Hey Shasta, it's just u and me on this one.

Another NZO in the short term and OSH long term, its day in the sun coming.

IPM was in my picks last year, it should come of and another string in Otto's bow. Otto's soverign risk is Well spead, IPM is not :confused:.

shasta

29-03-2008, 12:32 AM

Hey Shasta, it's just u and me on this one.

Another NZO in the short term and OSH long term, its day in the sun coming.

IPM was in my picks last year, it should come of and another string in Otto's bow. Otto's soverign risk is Well spead, IPM is not :confused:.

I know, like yourself i should have more oil exposure but OEL is IMO the best near term producer, with fantastic longer term prospects...

If it's just you & i in this, so be it...

Shame others haven't "woken up"... :rolleyes:

Am lining up LNC, have a look at it Tricha.

tricha

29-03-2008, 10:26 AM

I know, like yourself i should have more oil exposure but OEL is IMO the best near term producer, with fantastic longer term prospects...

If it's just you & i in this, so be it...

Shame others haven't "woken up"... :rolleyes:

Am lining up LNC, have a look at it Tricha.

You line up LNC Shasta, I'll keep lining up more Otto, as soon as Galoc oil is pumping in a month, she will be re-rated.

The gas in Turkey would be icing on the cake and that is pretty certain as well.

This is a well managed company, well funded with huge cash flow coming it's way, with excellent exploration upside potential.

Wysiwyg

02-04-2008, 01:19 PM

OEL nearing production with Galoc yet the s/p diminishes and a +24 million off-market share transaction with Nido was noticed today along with on-market disposals.:confused:What the f , is everyone going insane.

ronthepom

02-04-2008, 02:08 PM

shasta

02-04-2008, 03:34 PM

opes prime???

Yes, refer to the ADY thread, Jacksprat posted the entire list of companes involved. (No mention as to the extent however).

OEL is on that list, & NDO has been shorted of late.

I posted a separate thread on the companies being shorted on the ASX thread.

ronthepom

04-04-2008, 03:32 PM

Yes, refer to the ADY thread, Jacksprat posted the entire list of companes involved. (No mention as to the extent however).

OEL is on that list, & NDO has been shorted of late.

I posted a separate thread on the companies being shorted on the ASX thread.

Hi Shasta,

this new ann should put a smile on your face.

shasta

04-04-2008, 07:06 PM

Hi Shasta,

this new ann should put a smile on your face.

Ron

Despite the market dropping 0.5c on OEL to 30c, how good was that ann?

Otto Energy are using the AVO style analysis with there gas assets.

Thats 4/4 discovery gas wells in Turkey, with 4 more to drill.

Better still the same style analysis (AVO) will be used with the Gazatta -1 drill in Sept in Italy, & this is a potential "monster" target...

Am very happy with OEL's progression :cool:

ronthepom

04-04-2008, 07:27 PM

Ron

Despite the market dropping 0.5c on OEL to 30c, how good was that ann?

Otto Energy are using the AVO style analysis with there gas assets.

Thats 4/4 discovery gas wells in Turkey, with 4 more to drill.

Better still the same style analysis (AVO) will be used with the Gazatta -1 drill in Sept in Italy, & this is a potential "monster" target...

Am very happy with OEL's progression :cool:

Shasta,

I think we are also overlooking Argentina which i believe is another feather in their cap. Have met Alec --a friend of my son inlaw, pretty switched on guy!! when i was in Perth last year, hope to catch up with him again in july.

p.s bought another 50000k today.

shasta

04-04-2008, 07:32 PM

Shasta,

I think we are also overlooking Argentina which i believe is another feather in their cap. Have met Alec --a friend of my son inlaw, pretty switched on guy!! when i was in Perth last year, hope to catch up with him again in july.

p.s bought another 50000k today.

Look if Argentina is a goer, i'll be happier than a fat kid in a candy shop!

$1m drills onshore in Santa Rosa with the potential for > 200mmbos :eek:

If OEL remains around 30c for too much longer i'll be topping up myself!

tricha

04-04-2008, 07:47 PM

Look if Argentina is a goer, i'll be happier than a fat kid in a candy shop!

$1m drills onshore in Santa Rosa with the potential for > 200mmbos :eek:

If OEL remains around 30c for too much longer i'll be topping up myself!

Dam guys, I did not get home from work till after close, opes dumping and I missed an absolute bargin.
30 cents and they announce outstanding news, should have gone up five cents.
And this is only some icing on a big cake. Producing oil in 3 weeks.;)

4 April 2008
Australian Stock Exchange
By ASX online

Otto discovers substantial gas in first of 5 wells in Turkey

Australian based oil & gas company Otto Energy (ASX:OEL) and
Incremental Petroleum (ASX:IPM) are pleased to announce the discovery of
several gas bearing intervals in Ikihoyuk-1, the first of the 5 well drilling
program in the Edirne Licence in Western Turkey. (Ikihoyuk-1 has been
drilled to a total depth of 520m.)

Highlights:

• Ikihoyuk-1 encountered several potential gas pay intervals
totalling some 28m between 323m and 468m. This is
significantly more than anticipated.

• The depth of pay and the porosities encountered are also greater
than expected

• The Ikihoyuk structure is one of 17 mapped on 2007 3D seismic
and is a downthrown fault trap with a structural closure of about
1.7 sq km. The closure is coincident with strong amplitudes on
seismic.

• Ikihoyuk-1 is now being completed for flow testing at the end of
the 5 well drilling campaign.
The five well drilling program is designed to prove up additional volumes of
gas to enable a combination of these shallow fields to be placed on production
by mid-2009. The partners in the Edirne gas project are Incremental
Petroleum 55%, Otto Energy 35% and Turkish partner Petraco 10%.
Commenting on the news, Dr Jaap Poll, Director of Otto Energy said:

“Otto is pleased with these better than expected results in its first of 5 well drilling campaign.
Ikihoyuk-1 is the 4th well drilled since Otto acquired the licence in 2004. All 4 exploration
wells have resulted in gas discoveries based on seismically mapped traps with amplitude and
geochemical anomalies. We seemed to have found the key to success in this licence, which
augers well for the remainder of the drilling program.”

The attached release from the Joint Operator Incremental provides further details on the
Ikihoyuk-1 well.
Yours sincerely
DR JAAP POLL
Director

For further information visit Otto’s website www.ottoenergy.com or contact:
Jaap Poll Jill Thomas

Otto Energy Limited PPR Investor Relations
+61 (0) 8 9226 0001 +61 (0) 8 9388 0944

info@ottoenergy.com jthomas@pprwa.com.au

Attached Incremental release

ABN: 38 115 711 601

20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831
Ph: +618 9481 8696 Fx: +618 9481 2394

4 April 2008
Australian Stock Exchange
By ASX online

Incremental discovers gas in first well of Erdine Drilling - Turkey

Highlights:

• Ikihoyuk 1 well has encountered 28 metres of net gas, in the target pay
zone between 323m and 468m.

• Discovery zone is three times greater than prognosed.

• Present operation is running 5 inch casing on the Ikihoyuk 1 well and the
rig will then move to the next well in the five-well program - Ortakci 1.

• Ikihoyuk 1 will be tested, along with any other discoveries, at the end of
the 5-well drilling campaign anticipated to last about six weeks.

Incremental Petroleum announces that the first well in the 2008 Edirne
onshore drilling campaign in Western Turkey (IPM 55%) has discovered
almost three times the prognosed gas pay.

ORTAKCI
IKIHOYUK
ARPACI 2
KUZEY
ARPACI

0 5 km

3D AREA

LICENCE
BOUNDARY

LOCATION MAP

BATI YAGCI

Figure 1. Location of five wells in 2008 Edirne drilling campaign

The Ikihoyuk 1 well discovered 28 metres of net gas pay, based on
wireline log analysis, between 323m and 468m. Average porosity is
excellent at 26 per cent. Total depth of the well is 520m.
The pay is deeper than prognosed, adding significantly to preliminary
mapped reserves (based on the greater gas compressibility at depth).

ABN: 38 115 711 601

20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831
Ph: +618 9481 8696 Fx: +618 9481 2394

Ikihoyuk was drilled without incident and is total exploration costs are
currently approximately 15% below budget.
Ikihoyuk 1 will be flow tested, along with any other discoveries at the end
of the 5-well drilling campaign, anticipated to last about six weeks.
The Ikihoyuk structure is one of 17 structures mapped on the 2007 3D
seismic and is a downthrown fault trap.
The excellent results from this first well, together with gas previously
discovered in the 2007 exploration campaign, continue to build the
resources needed for substantial gas development in Edirne.
The partners in the Edirne Gas project are Incremental Petroleum 55%,
Otto Energy 35% and Petraco, as joint operator, with 10%.
Gerard McGann
Managing Director

ABN: 38 115 711 601

20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831
Ph: +618 9481 8696 Fx: +618 9481 2394

About Incremental Petroleum

Incremental was formed by a syndicate of petroleum industry experts in 2003
and listed on the ASX on 20 October 2005.
Its key strategy is to acquire low risk oil and gas assets and apply world class
technical expertise to develop the assets and their productivity.
Incremental’s major asset is the Selmo oilfield in Turkey, the second largest
oilfield in Turkey by cumulative production. The field has estimated oil initially
in place of approximately 500 million barrels, with a low recovery factor
(about 82 million barrels produced to date).
There are 47 wells at Selmo, 22 of which are still producing. The oil is sold at
the field gate and sent by truck to a refinery 40km away.
There is considerable scope for improved production and recovery at Selmo
– an oilfield which has a long life and provides an excellent net cash flow.
A second major asset in Turkey is the Edirne gas project in which Incremental
has a 55% interest. Gas discoveries have already been made in 2 wells out of
3 drilled and there is scope for more discoveries. Five additional wells will be
drilled this year.
Incremental has offices in Perth in Western Australia and in Istanbul and
Ankara in Turkey.
Incremental paid a maiden dividend of 3 cents per share in October 2006, a
capital return of 5 cents per share in May 2007, an interim dividend of 3 cents
per share in October 2007 and has declared a final dividend of 3 cents per
share payable in July 2008.

shasta

07-04-2008, 01:26 PM

Dam guys, I did not get home from work till after close, opes dumping and I missed an absolute bargin.
30 cents and they announce outstanding news, should have gone up five cents.
And this is only some icing on a big cake. Producing oil in 3 weeks.;)

4 April 2008
Australian Stock Exchange
By ASX online
Otto discovers substantial gas in first of 5 wells in Turkey
Australian based oil & gas company Otto Energy (ASX:OEL) and
Incremental Petroleum (ASX:IPM) are pleased to announce the discovery of
several gas bearing intervals in Ikihoyuk-1, the first of the 5 well drilling
program in the Edirne Licence in Western Turkey. (Ikihoyuk-1 has been
drilled to a total depth of 520m.)
Highlights:

•

Ikihoyuk-1 encountered several potential gas pay intervals

totalling some 28m between 323m and 468m. This is
significantly more than anticipated.
•

The depth of pay and the porosities encountered are also greater

than expected
•

The Ikihoyuk structure is one of 17 mapped on 2007 3D seismic

and is a downthrown fault trap with a structural closure of about
1.7 sq km. The closure is coincident with strong amplitudes on
seismic.
•

Ikihoyuk-1 is now being completed for flow testing at the end of

the 5 well drilling campaign.
The five well drilling program is designed to prove up additional volumes of
gas to enable a combination of these shallow fields to be placed on production
by mid-2009. The partners in the Edirne gas project are Incremental
Petroleum 55%, Otto Energy 35% and Turkish partner Petraco 10%.
Commenting on the news, Dr Jaap Poll, Director of Otto Energy said:
“Otto is pleased with these better than expected results in its first of 5 well drilling campaign.
Ikihoyuk-1 is the 4th well drilled since Otto acquired the licence in 2004. All 4 exploration
wells have resulted in gas discoveries based on seismically mapped traps with amplitude and
geochemical anomalies. We seemed to have found the key to success in this licence, which
augers well for the remainder of the drilling program.”
The attached release from the Joint Operator Incremental provides further details on the
Ikihoyuk-1 well.
Yours sincerely
DR JAAP POLL
Director
For further information visit Otto’s website

www.ottoenergy.com or contact:

Jaap Poll Jill Thomas
Otto Energy Limited

PPR Investor Relations

+61 (0) 8 9226 0001 +61 (0) 8 9388 0944
info@ottoenergy.com jthomas@pprwa.com.au
Attached Incremental release
ABN: 38 115 711 601
20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831
Ph: +618 9481 8696 Fx: +618 9481 2394
4 April 2008
Australian Stock Exchange
By ASX online
Incremental discovers gas in first well of Erdine Drilling - Turkey
Highlights:
•

Ikihoyuk 1 well has encountered 28 metres of net gas, in the target pay

zone between 323m and 468m.
•

Discovery zone is three times greater than prognosed.

•

Present operation is running 5 inch casing on the Ikihoyuk 1 well and the

rig will then move to the next well in the five-well program - Ortakci 1.
•

Ikihoyuk 1 will be tested, along with any other discoveries, at the end of

the 5-well drilling campaign anticipated to last about six weeks.
Incremental Petroleum announces that the first well in the 2008 Edirne
onshore drilling campaign in Western Turkey (IPM 55%) has discovered
almost three times the prognosed gas pay.
ORTAKCI
IKIHOYUK
ARPACI 2
KUZEY
ARPACI
0 5 km
3D AREA
LICENCE
BOUNDARY
LOCATION MAP
BATI YAGCI
Figure 1. Location of five wells in 2008 Edirne drilling campaign
The Ikihoyuk 1 well discovered 28 metres of net gas pay, based on
wireline log analysis, between 323m and 468m. Average porosity is
excellent at 26 per cent. Total depth of the well is 520m.
The pay is deeper than prognosed, adding significantly to preliminary
mapped reserves (based on the greater gas compressibility at depth).
ABN: 38 115 711 601
20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831
Ph: +618 9481 8696 Fx: +618 9481 2394
Ikihoyuk was drilled without incident and is total exploration costs are
currently approximately 15% below budget.
Ikihoyuk 1 will be flow tested, along with any other discoveries at the end
of the 5-well drilling campaign, anticipated to last about six weeks.
The Ikihoyuk structure is one of 17 structures mapped on the 2007 3D
seismic and is a downthrown fault trap.
The excellent results from this first well, together with gas previously
discovered in the 2007 exploration campaign, continue to build the
resources needed for substantial gas development in Edirne.
The partners in the Edirne Gas project are Incremental Petroleum 55%,
Otto Energy 35% and Petraco, as joint operator, with 10%.
Gerard McGann
Managing Director
ABN: 38 115 711 601
20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831
Ph: +618 9481 8696 Fx: +618 9481 2394
About Incremental Petroleum
Incremental was formed by a syndicate of petroleum industry experts in 2003
and listed on the ASX on 20 October 2005.
Its key strategy is to acquire low risk oil and gas assets and apply world class
technical expertise to develop the assets and their productivity.
Incremental’s major asset is the Selmo oilfield in Turkey, the second largest
oilfield in Turkey by cumulative production. The field has estimated oil initially
in place of approximately 500 million barrels, with a low recovery factor
(about 82 million barrels produced to date).
There are 47 wells at Selmo, 22 of which are still producing. The oil is sold at
the field gate and sent by truck to a refinery 40km away.
There is considerable scope for improved production and recovery at Selmo
– an oilfield which has a long life and provides an excellent net cash flow.
A second major asset in Turkey is the Edirne gas project in which Incremental
has a 55% interest. Gas discoveries have already been made in 2 wells out of
3 drilled and there is scope for more discoveries. Five additional wells will be
drilled this year.
Incremental has offices in Perth in Western Australia and in Istanbul and
Ankara in Turkey.
Incremental paid a maiden dividend of 3 cents per share in October 2006, a
capital return of 5 cents per share in May 2007, an interim dividend of 3 cents
per share in October 2007 and has declared a final dividend of 3 cents per
share payable in July 2008.

How's this for a proactive O&G company, Otto arent sitting around waiting for first oil!

Big drive to get farm in partners on SC51 & SC55, with considerable interest already, i wonder who is in the running (NDO would be obvious!)

http://www.asx.com.au/asxpdf/20080407/pdf/318fp2f340flnx.pdf

tricha

09-04-2008, 10:23 PM

©2008 Aspermont Limited • Courtesy of RESOURCESTOCKS magazine

Moving forward in two
thousand and Otto

This month promises to be a big one for an
Australian oil and gas explorer as it starts receiving
cash flow from a Philippines investment, which
will help fund what will hopefully be a “company
making” exploration program. By Wally Graham Otto Energy chief executive Alex Parks.

C ompan y P R O F I L E

energy otto

RESOURCESTOCKS| april 2008

Perth-based oil and gas company Otto
Energy will make the transition from
explorer to producer in 2008, with
first oil at the Galoc Oil Field offshore
Philippines, where it acquired an 18.28%
beneficial interest in December last year.
Since listing in 2004, the company has put
together an impressive exploration and
production portfolio consisting of one
producing field, four discoveries, 16 readyto-
drill prospects and more than 60 leads
across proven oil and gas provinces in the
Philippines, Italy, Turkey and Argentina.
But it is in the Philippines – a highly
prospective region with a number of
proven hydrocarbon basins yielding some
40 discoveries and 11 offshore commercial
fields – where Otto is currently focused.
It believes the region is highly prospective,
yet significantly under-explored with fewer
than 100 exploration wells having been
drilled offshore.
Otto’s beneficial share from Galoc’s
expected production will be approximately
3300 barrels of oil per day (bopd) from an
anticipated gross flow rate of 18,000bopd.
The company plans to use the injection
of cash as a springboard to fund future
exploration endeavours over the next two
years in a number of wells that have the
potential to propel Otto up to the size of a
significant mid-cap company.
“The transformation of Otto Energy
from explorer to producer is an exciting
phase in the company’s history and
fundamental to our long-term sustainability
as an Australian oil and gas company,” Otto
Energy chief executive Alex Parks told

RESOURCESTOCKS.
“The really important thing for Otto
now is that the production from Galoc
means we have, subject to flow rate and oil
price, between $US30 and $US60 million
a year working capital, which will give us
the ability to fund our exploration program
going forward and hopefully discover a
significant field for development in the
coming years.”
During 2007 Otto Energy acquired
seismic surveys across three of its licences
in the Philippines: two 3D surveys and one
2D survey that enabled the company to
mature these assets to a drillable status.
Processing and interpretation of the 116
square kilometres of 3D seismic data of the
Calauit oil field, situated at the northeast
end of the Palawan Basin, has identified
it as an appraisal opportunity that Otto
intends to be drilling by late 2008 or early
2009.

The Pacific Sword, used in the 2007 seismic survey.

©2008 Aspermont Limited • Courtesy of RESOURCESTOCKS magazine

At Argao 145sq.km of 3D offshore
seismic data acquired on the southern subblock
of the service contract (SC51) has
shown the structure to be very robust.
Interpretation of the seismic data Otto has
suggests that there is a small gas cap at the
crest of one of the Argao structures, which
Otto hopes will be gas sitting on oil.
“We are, perhaps, looking at 200 million
barrels of potential in Argao with some
very significant follow-up potential in
adjacent structures,” Parks said.
“During the next six months, we are going
to firm up the drilling slots and seek farm-in
partners to participate in the drilling in each
of our Philippines blocks where Otto has
working interests of 80 to 85 percent. This
will balance our risks and also result in a
carrying of Otto through some of the costs
to allow us best use of capital.”
Otto Energy has advanced quickly over
the last 14 months from a market cap of
$20 million to around $140 million.
Towards late last year, the company
raised approximately $68 million through
the placement of 226 million shares at 30c
per share. A significant portion of these
funds was used for the acquisition of the
beneficial interests in the Galoc Field with
the remainder, together with the funds from
a previous raising, for ongoing exploration
and development of the company’s assets.
While the main Philippines offshore
drilling program will commence in late
2008, Otto has an extensive onshore drilling
campaign which commenced in March this
year, with the first of five wells in Turkey
to be followed up with drilling in Italy and
potentially Argentina before year end.
What Parks described as “the next big
thing” for Otto is drilling of Gazzata-1 in
the Bastiglia-Cento permits in the Po Valley
of northern Italy where Otto farmed into
a large exploration permit held by AIMlisted
Ascent Resources. The Po Valley is
a proven hydrocarbon basin, where more
than 13 trillion cubic feet of gas and 342
million barrels of oil have been discovered
to date.
To earn 50% in the permits, Otto

contributed €2.15 million in January 2008

for the purchase of seismic data and
reimbursed Deltana Energy for direct costs
of $400,000. Otto will pay 100% of the cost
of drilling and testing the Gazzata-1 well.
In the event of a significant commercial
gas discovery at Gazzata-1, Otto will also
fund 100% of the cost of drilling and testing
of a second well.
“We will be drilling the Gazzata-1 well in
Italy in September targeting 130-200 billion
cubic feet of gas,” Parks said.
In the event of a discovery, the company
estimates the project is potentially worth
more than $200 million to Otto on a net
present value (NPV) basis, equating to
approximately 40c per share.
“There are two very similar structures in
the Bastiglia-Cento permits – Gazzata and
Rubiera. Gazzata is the first one that we are
going to drill. There are 2D seismic lines
that run north and south on Gazzata and
processing and interpretation shows what
looks like a common gas-water contact on
each line,” Parks added.
“If we can demonstrate that Gazzata
works, then we will have a good look at
Rubiera, which is another structure that
looks very similar. Between these two
structures and the rest of the block, which
is also judged to be very prospective, there
could be as much as a trillion cubic feet of
recoverable gas in the block.”
In Turkey, Otto and its joint venture
partners have commenced a five-well
drilling campaign on the Edirne licence at the
Onshore Thrace Basin. A 149km 3D seismic
survey completed at Edirne last year was
designed to optimally cover the central, and
so far, most prospective part of the permit.
Approximately 15 targets have been
identified in the 3D area. The joint venture
plans to drill five wells in the 2008 drilling
program. The group has previously drilled
three gas discoveries within the nearby
area. The discovered gas will be developed
during 2008, aiming for first gas sales during
the coming European winter.
The final dark horse in Otto’s impressive
portfolio is its project in Argentina. Otto
has been patiently waiting for two years on
formal award of the Santa Rosa licence in
the Cuyana Basin where it has agreed to a
farm-in with Canadian company Oromin to
earn 32.48% by spending $US1.4 million
(essentially the cost of the first well).
Parks said the awarding of the project
had been delayed due to the elections in
Argentina in 2007, but is now imminent and
that as soon as it is finalised the company
has immediate plans for one firm well and
one contingent well to be drilled within six
to eight months targeting 20-200 million
barrels of potentially recoverable oil in the
first exploration prospect.
“Otto is a very dynamic company with
a strong board, high-quality assets, and a
talented and enthusiastic team who have
worked hard to ensure the vital foundation
pieces are in place to establish a very solid
company,” Parks said.
“2008 and 2009 will be milestone years
for Otto, as we not only celebrate becoming
a producer, but also expect additional
exploration success which brings more
development projects to sustain our longterm
vision of becoming one of Australia’s
leading mid-tier oil and gas companiesable Nominees 3.57%

at a glance

otto energy

46 april 2008 |RESOURCESTOCKS

Source: Iress

Rubicon Intrepid – the Galoc production, storage and offloading vessel.

tricha

11-04-2008, 07:10 PM

http://www.galoc.com/images/photog_cleanup06-big.jpg

shasta

11-04-2008, 07:17 PM

http://www.galoc.com/images/photog_cleanup06-big.jpg

Toasting marshmellows? :D

Some nice volume this week for OEL.

tricha

11-04-2008, 07:37 PM

Toasting marshmellows? :D

Some nice volume this week for OEL.

Looks like finally we will be rewarded Shasta, NDO is is not rated as highly going great guns, burn a few more million up here and the same goes.

shasta

11-04-2008, 08:15 PM

Looks like finally we will be rewarded Shasta, NDO is is not rated as highly going great guns, burn a few more million up here and the same goes.

I see since the start of April the SP has risen above the short term moving average (20 day), yet has only crept up from around 30c to 33.5/34c.

Someone has been accummulating at these "cheap" prices!

Tricha - What are your thoughts on the Turkish gas assets?

(I'm watching IPM to see if anyones possibly lining up Edrine?)

tricha

12-04-2008, 07:50 AM

I see since the start of April the SP has risen above the short term moving average (20 day), yet has only crept up from around 30c to 33.5/34c.

Someone has been accummulating at these "cheap" prices!

Tricha - What are your thoughts on the Turkish gas assets?

(I'm watching IPM to see if anyones possibly lining up Edrine?)

Actually Shasta, The Turkish gas assets are in my way of thinking icing on the cake, I do not know much about them.
But I guess when the cash flow rolls in from Turkey on top of Galoc oil, thats when Otto will have the WOW factor.

Its a bit like NZO, till the proof is in the pudding does the market actually take note these days.
Mr Market is still in a very ugly mood and unlike a year ago, when with all this good news, Otto would be $1 by now.

So what you and I are doing is gambling that the oil will flow from Galoc and it will be a success like Tui oil and not like AED.

Peter Strachan from StockAnalysis rates Otto as a buy, with comments like," Now on target to be an oil producer by April, WELL funded and managed, huge upside for developement and exploration. Strong cash flow to fund exploration"

Otto is now my biggest holding, we will just have to have a little more patience to see the pudding ;)

tricha

13-04-2008, 12:06 AM

shasta

13-04-2008, 11:55 AM

Borrowed of HotCu Shasta, our patience should be rewarded.;)

permission from StockAnalysis to post the following from this weeks newsletter.

http://img27.picoodle.com/img/img27/4/4/11/f_galocvaluem_3e4853f.jpg (http://www.picoodle.com/view.php?img=/4/4/11/f_galocvaluem_3e4853f.jpg&srv=img27)

Thanks for posting that article.

If Galoc comes online without any major problems then we should see a nice spike when the next quarterly shows the cash rolling in.

ritchie

13-04-2008, 12:47 PM

so URA or OEL...any comments Shasta or others

Hold URA...wondering if OEL might be a better bet

shasta

13-04-2008, 02:43 PM

so URA or OEL...any comments Shasta or others

Hold URA...wondering if OEL might be a better bet

OEL is about to have substantial revenue/cashflow from the Galoc oilfield, whereas URA is a high risk spec!.

OEL also have plenty of potential leads which the cashflow will enable them to explore.

The Turkish gas assets look like they will provide meaningful revenue in 2009, & the current drill program is encouraging with another discovery.

OEL is worth north of 50c IMO.

Crypto Crude

13-04-2008, 02:46 PM

OEL is a great company... good spotting Tricha and shasta...
:cool:
.^sc

shasta

15-04-2008, 02:35 PM

OEL is a great company... good spotting Tricha and shasta...
:cool:
.^sc

http://stocknessmonster.com/news-item?S=IPM&E=ASX&N=402713

Tricha

Those of us in OEL must be rather smug knowing we have had a 2nd gas discovery in 2 drills (thats now 5 discoveries out of 5 in Turkey).

We still have another 2 or 3 drills to go.

I think we can safely double the previous , $US3-5m gas revenue with this strike rate.

Oh & Otto are using the same AVO style analysis on Gazatta-1 in Sept in Italy...

Thats a very large prospective gas permit, & with just $A10m to secure its 50% must be one of the bargins of the year. (That includes the 1st drill)

We get Argentina onboard & OEL is off like a robbers dog :D

tricha

15-04-2008, 07:26 PM

They are quietly doing it Shasta, very exciting times ahead, when they get the oil.
Nido is already counting the chickens before they hatch.
Otto has a double earner on its way and yes a third one coming in Italy.
Much more like Nido, to come out of the Philipines and Argentina if that comes off, we can retire.

Excellent read on Otto's brother in arms Nido.

http://www.stocknessmonster.com/news-item?S=NDO&E=ASX&N=402593

P.S Hey Shrewdie, u better be quick

Oiler

15-04-2008, 07:52 PM

Crypto Crude

16-04-2008, 12:42 PM

Oiler,
It was a decision between OEL and LMPO...
I think I made the right decision...
:cool:
.^sc

Oiler

16-04-2008, 07:10 PM

Oiler,
It was a decision between OEL and LMPO...
I think I made the right decision...
:cool:
.^sc

Shrewd one, for your investment type profile I would agree :D LMP is the right trade

OEL is different animal and is on a slow roll UP ! ;)

oiler

tricha

16-04-2008, 09:01 PM

Shrewd one, for your investment type profile I would agree :D LMP is the right trade

OEL is different animal and is on a slow roll UP ! ;)

oiler

Slow roll up, but come back this time next month and say that. ;)

shasta

17-04-2008, 02:32 PM

Slow roll up, but come back this time next month and say that. ;)

Buyers slowly taking over as OEL starts its upwards climb.

This could fly fairly quickly, if the sell side keeps withdrawing bids.

Its been range bound at 30-34c for a while now, & with a nice white candle we are now above the 30 day MA :D

Breakout time folks :cool:

tricha

17-04-2008, 07:48 PM

Buyers slowly taking over as OEL starts its upwards climb.

This could fly fairly quickly, if the sell side keeps withdrawing bids.

Its been range bound at 30-34c for a while now, & with a nice white candle we are now above the 30 day MA :D

Breakout time folks :cool:

Spot on Shasta a big hunk of sellers wiped out today.

The Galoc 4 test results were tremendous, exceeded our wildest expectations.

http://www.nido.com.au/images/layout/dave-says-pretty.jpg

This completes the drilling and appraisal phase of Galoc. Installation of the production and FPSO is about to commence. Nido is eagerly awaiting first oil in April.

Best wishes David Whitby, 28 February 2008

P.S - todays news from Nido.

Sounds bad, but whats a week or two going to do, the way the oil price is
going :rolleyes:
http://www.stocknessmonster.com/news-item?S=NDO&E=ASX&N=403025

AMR

18-04-2008, 10:41 PM

Technically it is nudging past the resistance so today would be a breakout day. What sort of PE will OEL be on once Galoc and the Turkey wells enter full production? I'm more comfortable buying into cashflow rich companies such as PSA and NZO - explorers, less so. What's the "worst case" pricing?

Edit : Also, what is "risked NPV"?

tricha

20-04-2008, 08:52 PM

AMR - "Technically it is nudging past the resistance so today would be a breakout day. What sort of PE will OEL be on once Galoc and the Turkey wells enter full production? I'm more comfortable buying into cashflow rich companies such as PSA and NZO - explorers, less so. What's the "worst case" pricing?"

I would not have a clue in the world AMR "Blue sky material" but I'm sure Stockanalysis will re-rate upwards, on the two holes drilled in Turkey.

Borrowed of HotCu Shasta, our patience should be rewarded.;)

permission from StockAnalysis to post the following from this weeks newsletter.

http://img27.picoodle.com/img/img27/4/4/11/f_galocvaluem_3e4853f.jpg (http://www.picoodle.com/view.php?img=/4/4/11/f_galocvaluem_3e4853f.jpg&srv=img27)

shasta

22-04-2008, 02:14 PM

AMR - "Technically it is nudging past the resistance so today would be a breakout day. What sort of PE will OEL be on once Galoc and the Turkey wells enter full production? I'm more comfortable buying into cashflow rich companies such as PSA and NZO - explorers, less so. What's the "worst case" pricing?"

I would not have a clue in the world AMR "Blue sky material" but I'm sure Stockanalysis will re-rate upwards, on the two holes drilled in Turkey.

OEL holding its recent gains, & seems ready to re-test 40c.

Some nice volume of late, & with the Brent Oil price around $US114 things are looking good for May!

Remember the Galoc oil is to be sold at a slight discount to the Brent price.

tricha

23-04-2008, 09:37 PM

Hmm, slow ramp up Shasta, not long now.

Borrowed off HotCopper - Author SandyBeaches.

in SC55 "Hawkeye Prospect"

valuation "NPV/share 95cents, Risked NVP/share 18cents.

when Alex returns from honeymoon next week shall follow up and get some more details..

http://img27.picoodle.com/img/img27/4/4/22/f_sc55204m_c9720c2.jpg (http://www.picoodle.com/view.php?img=/4/4/22/f_sc55204m_c9720c2.jpg&srv=img27)
as usual people DYOR

Tok3n

23-04-2008, 11:32 PM

A director just offloaded 200,000 shares...nice formatting of the notice though :)

But these guys do look like they have interested assets.

tricha

28-04-2008, 09:33 PM

A director just offloaded 200,000 shares...nice formatting of the notice though :)

But these guys do look like they have interested assets.

Always a worry Tok3n, when a director sells, but in this case only a few.

ASX / Media Announcement
28th April 2008

Otto spuds Third of 5 wells in gas drilling campaign in Turkey

Australian based oil & gas company Otto Energy (ASX: OEL) is pleased to
announce the spudding of the third shallow gas well in 2008 of the Edirne gas
project in Western Turkey. It is expected that the well will reach its planned
total depth of around 400m early next week, when a further announcement will
be made.

Highlights:

• Ortakci-1 is the third of five wells planned. The drilling campaign
targets a total of 10 – 20 bcf of recoverable gas from shallow
reservoirs in the Thrace Basin, onshore Turkey.

• The Ortakci prospect lies about 8 km west of the five gas
discoveries made by the Joint venture to date in the Edirne Licence
and is also covered by 3D seismic.

Yours faithfully

Jaap Poll for Alex Parks
For further information please contact:

Dr Jaap Poll / Director Jill Thomas
Otto Energy Professional Public Relations
Ph: +61 8 9226 0001 Ph: +61 8 9388 0944

info@ottoenergy.com jthomas@pprwa.com.au

STRAT

28-04-2008, 11:01 PM

Hi Tricha,
Another great ann all but ignored by the market place today.:(

ritchie

01-05-2008, 11:29 AM

and another this morning...why is this.

shasta

01-05-2008, 02:43 PM

and another this morning...why is this.

This is the regular Galoc update, same as NDO...

All good & first oil is upon us...

Oh & 6 gas discoveries in a row (100%) ...

....& OEL are using this style analysis for Gazatta-1 in Sept....mmm :eek:

tricha

01-05-2008, 08:45 PM

This is the regular Galoc update, same as NDO...

All good & first oil is upon us...

Oh & 6 gas discoveries in a row (100%) ...

....& OEL are using this style analysis for Gazatta-1 in Sept....mmm :eek:

I wonder how much this is all worth to Otto Shasta. Just a little icing on the cake to what happens in a few weeks ;)

1

st May 2008

Australian Securities Exchange
By ASX online
Otto makes 6

th Gas Discovery in Turkey

Joint venture partners Otto Energy (ASX: OEL) and Incremental
Petroleum (ASX: IPM) are pleased to announce the confirmation of
several gas bearing intervals in Ortakci-1 exploration well, the third of
a 5-well drilling program currently underway in the Edirne Licence in
Western Turkey.
Highlights
•

Ortakci-1 encountered approximately 20m net gas pay

intervals located between 238m and 332m, with excellent
porosity averaging 25%.
•

Ortakci-1 was drilled to a total depth of 524m and the present

operation is running casing for flow testing once drilling of all
five wells is completed.
•

Ortakci-1 is the largest and western-most of the 17 structures

mapped on the 2007 3D seismic, covering an area of
approximately 3 sq km.
•

The drilling rig will now be moved to the 4th well site Arpaci-2,

an updip appraisal well of the Arpaci-1 discovery made in
2006.
The 5-well program is designed to prove up significant volumes of gas
to enable a combination of these gas discoveries to be placed on
production by mid-2009.
The partners in the Edirne Gas project are Otto Energy 35%,
Incremental Petroleum 55%, and Turkish partner and Joint Operator
Petraco 10%.
Commenting on the news Alex Parks, CEO of Otto Energy said:
“This is another excellent result - with a total of six new-field gas
discoveries now made from six wells drilled since Otto acquired the
Edirne licence in 2004. These small gas fields are relatively close
together and can be developed through a central development hub. We
look forward to commercializing these discoveries once the drilling and
testing program has been completed by end June 2008. .”
The attached release from the Joint Operator Incremental Petroleum
provides further details on the Ortakci-1 discovery well.
Yours faithfully
_________________
Alex Parks
Chief Executive Officer
For further information visit Otto’s website

www.ottoenergy.com or

contact:
Alex Parks Jill Thomas
Otto Energy Limited PPR Investor Relations
+61 (0) 8 9226 0001 +61 (0) 8 9388 0944
info@ottoenergy.com jthomas@pprwa.com.au
ABN: 38 115 711 601
20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831
Ph: +618 9481 8696 Fx: +618 9481 2394
1 May 2008
Australian Stock Exchange
By ASX online
•

6th gas discovery in Turkey

•

20 metres of potential net gas pay in third well at Edirne

•

Largest mapped structure on block

Incremental Petroleum (ASX: IPM) and Otto Energy (ASX: OEL) are
pleased to announce that Ortakci -1, the third well in this year’s five well
drilling campaign at Edirne, has encountered some 20m of potential gas
bearing net reservoir sands. The sands are located between 238m and
332m. Reservoir properties are excellent, with an average porosity of 29%.
The presence of gas is confirmed with wireline pressure measurements
and nuclear magnetic logging. Testing of the gas productivity will be
undertaken at the end of the drilling campaign in a few weeks.
Ortakci 1 was drilled to a total depth of 524m, and the present operation
is running casing. The rig will then move to Arpaci 2.
ORTAKCI
IKIHOYUK
ARPACI 2
KUZEY
ARPACI
0 5 km
3D AREA
LICENCE
BOUNDARY
LOCATION MAP
BATI YAGCI
Figure 1. Location of five wells in 2008 Edirne drilling campaign
The Ortakci structure is the largest of the 17 structures mapped on the
2007 3D seismic and is a broad feature coincident with strong seismic
amplitudes covering an area of about 3.0 sq. km. The excellent reservoir
thickness and high porosity greatly enhance the prospectivity of the
more western parts of the Edirne concession.
ABN: 38 115 711 601
20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831
Ph: +618 9481 8696 Fx: +618 9481 2394
The 2008 drilling campaign involves the drilling of five wells (Figure 1)
targeting a combined 10-20 BCF. The programme is designed to prove
up significant sales volume of gas to enable a combination of these
shallow structures to be placed on production by mid 2009.
The partners in the Edirne Gas project are Incremental Petroleum (55%),
Otto Energy (35%) and Petraco Energi (10%), who are also joint operator
with Incremental.
Gerard McGann
Managing Director

tricha

01-05-2008, 08:47 PM

Aquila Centre Level 3, 1 Preston Street Como WA 6152 P :+61 8 9474 0000 F: +61 8 9474 0099 www.nido.com.au Unit 38B, 38th Floor Philamlife Tower 8767 Paseo de Roxas Makati City 1226 Philippines P: +63 2 856 5492 F: +63 2 856 5494 ASX Code: NDO 30 April 2008
Company Announcements Office
Australian Securities Exchange Limited
Level 10, Exchange Centre
20 Bond Street
SYDNEY NSW 2000

Galoc Project Update to 30 April 2008
Nido Petroleum Ltd (Nido) is pleased to provide this update on the development of the Galoc oil field, offshore Palawan Basin, The Philippines.
Crude Oil Assay Results
During the past week, Nido received the results of the crude oil assay from the samples collected during the well flow testing in February. The assay results indicate that the Galoc oil is a light, non-waxy, medium sulphur crude with good middle distillate yields.
Nido’s Deputy Managing Director, Ms. Joanne Williams, said "We are very pleased with these results as they indicate that the Galoc crude is compares favourably with the higher sulphur crudes that are imported to South East Asia from the Middle East. We are continuing our marketing efforts with Trafigura and these results will greatly assist us with our work."
FPSO ‘Rubicon Intrepid’
The last remaining item in the development sequence is the mobilisation, hook-up and on-site commissioning of the FPSO ‘Rubicon Intrepid’ and the subsea equipment. The Operator, the Galoc Production Company, has advised that the pre-commissioning work is continuing on the FPSO at Batangas, some 120km south of Manila. As advised in our recent releases, first oil is expected in May 2008.
Aquila Centre Level 3, 1 Preston Street Como WA 6152 P :+61 8 9474 0000 F: +61 8 9474 0099 www.nido.com.au Unit 38B, 38th Floor Philamlife Tower 8767 Paseo de Roxas Makati City 1226 Philippines P: +63 2 856 5492 F: +63 2 856 5494 ASX Code: NDO
Nido will continue to provide the market with regular updates on the Galoc development and will notify the market immediately of material events.
Yours sincerely
Joanne Williams
Deputy Managing Director

For more information please contact:

Ms. Joanne Williams
Deputy Managing Director
Ph: +61 8 9474 0000
F: +61 8 9474 0099

www.nido.com.au

shasta

02-05-2008, 01:09 PM

I wonder how much this is all worth to Otto Shasta. Just a little icing on the cake to what happens in a few weeks ;)

1

st May 2008

Australian Securities Exchange

By ASX online
Otto makes 6

th Gas Discovery in Turkey

Joint venture partners Otto Energy (ASX: OEL) and Incremental

Petroleum (ASX: IPM) are pleased to announce the confirmation of
several gas bearing intervals in Ortakci-1 exploration well, the third of
a 5-well drilling program currently underway in the Edirne Licence in
Western Turkey.
Highlights
•

Ortakci-1 encountered approximately 20m net gas pay

intervals located between 238m and 332m, with excellent

porosity averaging 25%.
•

Ortakci-1 was drilled to a total depth of 524m and the present

operation is running casing for flow testing once drilling of all

five wells is completed.
•

Ortakci-1 is the largest and western-most of the 17 structures

mapped on the 2007 3D seismic, covering an area of

approximately 3 sq km.
•

The drilling rig will now be moved to the 4th well site Arpaci-2,

an updip appraisal well of the Arpaci-1 discovery made in

2006.
The 5-well program is designed to prove up significant volumes of gas
to enable a combination of these gas discoveries to be placed on
production by mid-2009.
The partners in the Edirne Gas project are Otto Energy 35%,
Incremental Petroleum 55%, and Turkish partner and Joint Operator
Petraco 10%.
Commenting on the news Alex Parks, CEO of Otto Energy said:
“This is another excellent result - with a total of six new-field gas
discoveries now made from six wells drilled since Otto acquired the
Edirne licence in 2004. These small gas fields are relatively close
together and can be developed through a central development hub. We
look forward to commercializing these discoveries once the drilling and
testing program has been completed by end June 2008. .”
The attached release from the Joint Operator Incremental Petroleum
provides further details on the Ortakci-1 discovery well.
Yours faithfully
_________________
Alex Parks
Chief Executive Officer
For further information visit Otto’s website

www.ottoenergy.com or

contact:

Alex Parks Jill Thomas
Otto Energy Limited PPR Investor Relations
+61 (0) 8 9226 0001 +61 (0) 8 9388 0944
info@ottoenergy.com jthomas@pprwa.com.au
ABN: 38 115 711 601
20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831
Ph: +618 9481 8696 Fx: +618 9481 2394
1 May 2008
Australian Stock Exchange
By ASX online
•

6th gas discovery in Turkey

•

20 metres of potential net gas pay in third well at Edirne

•

Largest mapped structure on block

Incremental Petroleum (ASX: IPM) and Otto Energy (ASX: OEL) are

pleased to announce that Ortakci -1, the third well in this year’s five well
drilling campaign at Edirne, has encountered some 20m of potential gas
bearing net reservoir sands. The sands are located between 238m and
332m. Reservoir properties are excellent, with an average porosity of 29%.
The presence of gas is confirmed with wireline pressure measurements
and nuclear magnetic logging. Testing of the gas productivity will be
undertaken at the end of the drilling campaign in a few weeks.
Ortakci 1 was drilled to a total depth of 524m, and the present operation
is running casing. The rig will then move to Arpaci 2.
ORTAKCI
IKIHOYUK
ARPACI 2
KUZEY
ARPACI
0 5 km
3D AREA
LICENCE
BOUNDARY
LOCATION MAP
BATI YAGCI
Figure 1. Location of five wells in 2008 Edirne drilling campaign
The Ortakci structure is the largest of the 17 structures mapped on the
2007 3D seismic and is a broad feature coincident with strong seismic
amplitudes covering an area of about 3.0 sq. km. The excellent reservoir
thickness and high porosity greatly enhance the prospectivity of the
more western parts of the Edirne concession.
ABN: 38 115 711 601
20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831
Ph: +618 9481 8696 Fx: +618 9481 2394
The 2008 drilling campaign involves the drilling of five wells (Figure 1)
targeting a combined 10-20 BCF. The programme is designed to prove
up significant sales volume of gas to enable a combination of these
shallow structures to be placed on production by mid 2009.
The partners in the Edirne Gas project are Incremental Petroleum (55%),
Otto Energy (35%) and Petraco Energi (10%), who are also joint operator
with Incremental.
Gerard McGann
Managing Director

Tricha

Based on the 3 previous discoveries OEL has mentioned revenue of $US3m-5m.

I'd say with 6 discoveries we can safely double that range to $US6-10m per year.

With more drills still to come we could see > $US10m p.a revenues from Turkey.

Still only equates to about 1 months oil from Galoc!

tricha

03-05-2008, 06:49 PM

Tricha

Based on the 3 previous discoveries OEL has mentioned revenue of $US3m-5m.

I'd say with 6 discoveries we can safely double that range to $US6-10m per year.

With more drills still to come we could see > $US10m p.a revenues from Turkey.

Still only equates to about 1 months oil from Galoc!

This is getting hot Shasta, because Otto is going to have four strings to her bow.
I've working on it and will update #3 soon. ;)

Hot of Hotcopper, another #4 string to their bow.

Good news.

-----------------------------------------------------

Oromin Explorations Ltd.: Official Decree Authorizes Santa Rosa Oil Project
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 2, 2008) - Oromin Explorations Ltd. (TSX VENTURE:OLE)(OTCBB:OLEPF) is pleased to report that the exploration rights for its Santa Rosa oil and gas project in the Province of Mendoza, Argentina have now been formally authorized. The Government of Mendoza has issued Decree # 1018/2008. This decree grants Oromin's Argentina subsidiary the Permit to Explore and eventually a Concession to Exploit hydrocarbons in the CC y B-9 (Cuenca Cuyana & Bolsones 9) Santa Rosa Block.

Receipt of this formal decree now clears the way for the Company commencing exploration for petroleum on the Santa Rosa Block. The Santa Rosa Block has an area of 7,694 square kilometres with approximately 300 square kilometres being the area of greatest exploration interest. It covers a large, untested, shallow dome structure (less than 1,200 metres target depth) that is defined by four surrounding seismic lines on a regional grid. The Santa Rosa Block is located within the Cuyana Basin which has produced over 940 million barrels of oil and has an established infrastructure of pipelines, a refinery and an experienced oil industry work force. Preparation of a 51-101 report on the Santa Rosa Block by an independent consultant is now underway.

Otto Energy Limited has a Letter of Intent with the Company which enables it to earn up to a 41.24% working interest by the expenditure of up to US$2,297,381.

Norman Haimila, Ph.D, director and VP Explorations-Petroleum, is the Company's "qualified evaluator" for the purposes of National Instrument 51-101 and has verified the data disclosed in this news release. Dr. Haimila is a member of A.I.P.G. and A.A.P.G.

-------------------------------------------

Bg.

1 Person, 1 vote - promotes the welfare-state and socialism .. time for a change!

just my opinion as a mug oil speccy.
Get professional advice.

tricha

03-05-2008, 07:31 PM

We will have to wait for Galoc oil before Otto focus attention next to PVE.

ASX/MEDIA RELEASE
18 March 2008

ITALIAN ENERGY LEADER AND PO VALLEY IN
JOINT AGREEMENT ON TWO ENERGY PROJECTS

A major oil and condensate exploration target and a gas development field in northern Italy will
be developed under an agreement announced today between Italian energy leader, Edison and
Australia’s ASX-listed emerging gas producer, Po Valley Limited (ASX code “PVE”).
Under the agreement, Edison and Po Valley will now jointly develop on a 50:50 basis, the
prospective Ossola exploration licence north of Milan and to the west of Bergamo, which is
expected to contain a very large-scale oil and condensate target with additional potential for a
gas target.
This joint venture arrangement is subject to the granting of the final licence by the Ministry of
Economic Development. Po Valley will retain operatorship until the spud of the first exploration
well, after which time operatorship will pass to Edison.
Edison – the second largest gas and electricity company in Italy – is presently operator in a joint
venture with Po Valley for the San Vincenzo licence area and Sant’Alberto gas field, north of
Bologna.
Under the agreement announced today, Edison will move from its previous 50% joint venture
interest to a royalty entitlement of 3.75% on hydrocarbons production from the Sant’ Alberto
field and San Vincenzo licence. Po Valley in turn will move from its 50% interest to full
ownership (100%) of the San Vincenzo licence and the Sant’ Alberto field as well as
operatorship of this area.
Rights to the Ossola licence had been in dispute between Po Valley and Edison with Edison
originally challenging a decision in October 2006 by the Italian Ministry to preliminary award the
licence to Po Valley. During this time Po Valley has obtained the Environmental Clearance from
the Regione Lombardia Authority and has already proceeded with a regional, large scale
geological study. Po Valley has purchased more than 50 km of 2D seismic dataset.
“The agreements announced today close out the dispute and pave the way for an accelerated
and decisive exploration campaign targeting the large-scale oil and condensate and gas targets
in Ossola,” Po Valley’s Chief Executive Officer, Mr Michael Masterman, said today.
“The agreements generate considerable upside for both Edison and Po Valley while significantly
adding to Po Valley’s expanding footprint of gas and oil exploration, development and
production plays in northern Italy.”
Po Valley is currently constructing surface plant in gearing up for first gas production from its
Castello and Sillaro gas fields near Milan and Bologna respectively in northern Italy.

MEDIA CONTACTS:
Michael Masterman Po Valley Energy 0417 851 303
Kevin Skinner Field Public Relations (08) 8234 9555 / 0414 822 631

7 December 2007
Manager of Company Announcements
Australian Securities Exchange
Level 6, 20 Bridge Street
SYDNEY NSW 2000
By E-Lodgement

Otto Energy farms into large onshore exploration
acreage in the Po Valley, Italy.

Otto Energy ASX: OEL is pleased to announce that it will acquire 50% of the
Bastiglia- Cento Exploration Permits, in the Po Valley of onshore Italy, from Ascent
Resources plc.

Highlights

• The two adjacent Bastiglia - Cento Exploration Permits are considered highly
prospective with multiple hydrocarbon prospects and leads already identified

• The first well, Gazzata-1, will be drilled around September 2008, targeting
prospective gas resources of over 100bscf equivalent to potentially over
A$200 million in value to Otto.

• Minimum commitment for Otto to earn 50% in the two permits is approximately
A$10 million and in the event of a significant commercial gas discovery in the
first well, Otto will also fund 100% of drilling and testing of a second well.

• Otto intends to purchase the seismic out of current funds and fund the drilling out
of anticipated revenues from the Galoc Oil Field, which is scheduled to
commence production in April 2008.

• Otto’s joint venture partner and operator of the Italian permits is Ascent
Resources Plc, an AIM-listed company with an established office in-country and
considerable drilling expertise in the area.
Commenting on the announcement Alex Parks CEO of Otto Energy said:

“This new acquisition is a perfect fit for Otto as we continue to build our portfolio of
onshore and offshore oil and gas assets with a pipeline of projects that span across
exploration, development and production.
“The Bastiglia - Cento Exploration permits are considered to be highly prospective
and relatively low risk. The Gazzata prospect alone could be worth up to
A$200 million to Otto in the event of a commercial discovery, and there is significant
follow up potential in a variety of different play types, some of which could hold up to
1 TCF gas resource potential.

Terms of the Deal

The minimum commitment for Otto to earn 50% in the two permits is by purchasing
approximately A$3.65 million worth of existing seismic in the blocks from Italian major
ENI, and paying 100% cost of drilling initially one well at an estimated cost of
approximately A$6 million.
A three-way farm in agreement has been signed between Otto Energy Ltd, Ascent
Resources plc and Deltana Energy Ltd, who had originally agreed to acquire up to
50% interest in the Bastiglia-Cento Block.
To earn 50% in the Bastiglia - Cento Block, Otto will:

• contribute €2.15 million (A$3.65 million) in January 2008 for the purchase of
seismic data,

• reimburse Deltana for direct costs of A$400,000, and

• pay 100% of the drilling and testing of the Gazzata-1 well estimated to be
A$6 million.

• In the event of a significant commercial gas discovery in Gazzata-1, Otto will also
fund 100% of drilling and testing of a second well.

• Deltana Energy Ltd have retained an option to acquire a 15% working interest
from Otto which is exercisable up to 31st March 2008, by sharing the terms of the
farmin on a pro-rata basis.

Details on the Permits

The Bastiglia - Cento Permits are located in the Po Valley in Northern Italy (Figure 1).
The Po Valley is a proven hydrocarbon basin with over 13Tcf of gas and 340 MMbbl
of oil discovered to date. The permits are currently 100% held and operated by
Ascent Resources Plc, an AIM listed company with a portfolio of assets in Italy and
other European countries. Ascent has a strong local presence in Italy with an
established office and drilling expertise and will be a competent operator for the Joint
Venture.
The Bastiglia-Cento Block is surrounded by a number of substantial oil and gas fields
that are currently on production (Figure 2). There is a good infrastructure of roads
and pipelines criss-crossing the permits. The gas price in Italy is very high
(~US$10/Mscf) hence gas discoveries of 5Bscf and above are commercial.
The play types in the permits are confirmed on seismic by sophisticated AVO
analysis and are mostly stratigraphic in nature. Typically the prospects are at depths
of between 1,600m and 3,500m and have prospective resource volumes of between
50bscf and 300bscf per prospect. The surrounding fields were drilled on structural
traps in the 1960’s to late 1980’s before good seismic became available and AVO
processing became an established exploration tool. Otto to date has a 100%
success rate in Turkey by drilling structures with AVO anomalies.
Ascent Resources plc is a European oil and gas exploration and production company
listed on AIM Since commencing operations in 2005, it has built a portfolio of some
twenty oil and gas projects across Europe in Hungary, Switzerland, Spain, Italy,
Slovenia and the Netherlands.
Yours faithfully

_________________
Alex Parks
CEO
For further information please contact:

Alex Parks (CEO) John Williams / Jill Thomas
Otto Energy Professional Public Relations
Ph: +61 8 9226 0001 Ph: +61 8 9388 0944

ronthepom

05-05-2008, 05:14 PM

Shasta,

I think we are also overlooking Argentina which i believe is another feather in their cap. Have met Alec --a friend of my son inlaw, pretty switched on guy!! when i was in Perth last year, hope to catch up with him again in july.

p.s bought another 50000k today.

Hi Shasta,
Now the ball will start to roll--------ARGENTINA !!!

CHEERS RON

bear

05-05-2008, 08:45 PM

Stocks
Stock of the week – Otto Energy
May 05, 2008
Tim Morris, wise-owl.com (http://www.wise-owl.com/entry.asp?component_id=372) analyst</STRONG>
http://www.compareshares.com.au/images/wiseowl/wise51.jpg
Company: Otto Energy Ltd

Code: OEL

Recommendation: Spec Buy

Market Cap: $158m

For investors beginning to feel the pinch at the bowser, it may be time to consider taking action against their exposure to rising fuel prices. Buying shares in oil companies that can actually benefit from record high oil prices is one obvious solution. However the sector is not for the faint hearted. Hydrocarbon exploration has always been a ‘hit and miss’ affair, especially at the junior end of the sector where the share prices of explorers are known for their extreme volatility surrounding drilling results.

http://g.adspeed.net/ad.php?do=img&zid=12959&wd=300&ht=250&pair=as (http://g.adspeed.net/ad.php?do=clk&zid=12959&wd=300&ht=250&pair=as)Drilling targets to find that often illusive ‘company maker’, offers the greatest potential creator of value for any junior oil and gas explorer. However drilling is a very expensive past time, which makes these companies very cash hungry and in need of strong investor support.

In the case of Otto Energy, the good news is they have both a busy drilling schedule and plenty of investor support. Late last year, the company found investors were willing to inject a staggering total of $79m over two raisings into the company, which at the time was greater than the company’s market capitalisation. This was no small feat, and put the company in a strong position to pursue a good mix of low risk low impact and exciting high risk high impact targets.

These funds have also been used to buy a revenue share in the large 'Galoc' oil field in the Philippines which is due to commence production this month. The Galoc oil field is expected to contribute $30m in revenues during 2008 according to Otto Energy, and we estimate it will generate substantially more revenue than this in 2009.
http://www.compareshares.com.au/images/wiseowl/wise51.2008.05.05.A.jpg
This oil field has 2P reserves of 23MMbbls and is expected to start producing at a rate of approximately 15,000 barrels of oil per day. Otto Energy’s 18.28% interest in this field will give it a share of approximately 4.2m barrels from reserves and 3,300 barrels of oil per day from production.

In addition to Galoc Otto also boasts a swag of other exploration projects in the Philippines. Otto has stakes in the offshore permits SC50 (85%), SC55 (85%), and the onshore & offshore SC51 (80%). At the moment Otto is seeking farm-in partners for these projects to share the offshore drilling costs and will be looking to drill 10 exploration wells from 2009-2012.
http://www.compareshares.com.au/images/wiseowl/wise51.2008.05.05.B.jpg
The Galoc Field in the Philippines. Source: OEL

Therefore while Galoc undergoes development, and the company’s other Philippine assets await drilling next year, Otto’s current exploration focus lies in Turkey, where it holds a 35% interest in ground covering the onshore ‘Thrace Basin’.

This Turkish Joint Venture has made 6 gas discoveries in total, and 2 wells are still to be drilled as part of the current drill programme. Three of the discoveries were made in a previous drilling campaign, and the 3 have been made as part of the latest campaign. The three new gas discoveries and the earlier three discoveries are relatively close together and can be developed through a central development hub. The joint venture is aiming to establish a reserve estimate from the latest discoveries and bring them into production by mid 2009.

Otto also has exploration interests in Italy and Argentina. The company has just farmed into its Italian project and no drill programmes are planned as of yet. Otto’s Argentinean project is regarded as a potentially ‘high impact’ field. The license to drill this project has yet to be formally awarded, however upon award Otto has indicated that it would be ready to drill 2 wells within 12 months.

The award of this license could trigger a re rating in the stock, however when this will occur remains uncertain. Other catalysts that we feel could drive the share price higher include the revenues from the Galoc oil field, ongoing exploration success in Turkey, an estimate of the Turkish joint venture’s gas reserves, and more detail on a production plan for this field.

In our view these strong share price drivers combined with an existing healthy cash balance of $6.7m warrant a ‘spec buy’ recommendation on the stock. Like any other junior oil play, the risks facing the stock which investors should consider surround the oil price and exploration and development success. Oil is currently trading near record highs, however a significant fall could also drag Otto’s share price down. Although development at the Galoc field has thus far been smooth, any set backs are likely to also have a very severe impact on the share price.

shasta

07-05-2008, 01:19 PM

Hi Shasta,
Now the ball will start to roll--------ARGENTINA !!!

CHEERS RON

Nice analysis there Bear...

Ron

Santa Rosa is the very thing that should start the roll on...

Lets see what OEL has to offer during 2008...

1. 2 more drills in Turkey (6/6 strikes thus far)
2. Galoc first oil during May (>3000bopd to OEL). NB Brent price >$US120!
3. Gazatta-1 gas drill in Italy in Sept
4. Possibly drilling Santa Rosa in Q4 2008

OEL should be well north of $1 come Xmas, & if they strike oil in Santa Rosa, its name your price :eek:

AMR

07-05-2008, 02:03 PM

I am now a holder of some shiny new OEL shares! We can't really go wrong when there has been so much accumulation!

(Unfortunately I buggered my order. See that spike up to 43? That was me:mad::mad::mad:)

ronthepom

07-05-2008, 02:17 PM

Nice analysis there Bear...

Ron

Santa Rosa is the very thing that should start the roll on...

Lets see what OEL has to offer during 2008...

1. 2 more drills in Turkey (6/6 strikes thus far)
2. Galoc first oil during May (>3000bopd to OEL). NB Brent price >$US120!
3. Gazatta-1 gas drill in Italy in Sept
4. Possibly drilling Santa Rosa in Q4 2008

OEL should be well north of $1 come Xmas, & if they strike oil in Santa Rosa, its name your price :eek:

Hi Shasta, have sent you a pm. Ron

small fish

07-05-2008, 04:57 PM

Shasta, have you seen the preso out by NDO last night and the action today. Some monster targets and maybe an indication of what could also be in store for OEL in the phillipines in the future.

AMR

07-05-2008, 07:40 PM

http://www.sharetrader.co.nz/picture.php?albumid=5&pictureid=7
A nice breakout today on decent volume. Was a bit worried that I'd jumped the gun on my entry but it turned out ok:o

tricha

07-05-2008, 08:05 PM

AMR "A nice breakout today on decent volume. Was a bit worried that I'd jumped the gun on my entry but it turned out ok:o"

A great day out, but look at NDO fly. I hope u r not to late to put that other one in the bag AMR ;)

But if they do a Tui with Galoc, then they will be one of the stocks of the year.

ABsolutely.
Stock of the week – Otto Energy
May 05, 2008
Tim Morris, wise-owl.com (http://www.wise-owl.com/entry.asp?component_id=372) analyst</STRONG>

AMR

07-05-2008, 08:57 PM

Sh!t, what happened there? So many good stocks to buy, so little cash.

shasta

08-05-2008, 11:59 AM

Shasta, have you seen the preso out by NDO last night and the action today. Some monster targets and maybe an indication of what could also be in store for OEL in the phillipines in the future.

Yes i read the NDO ann, & quite a bit misleading to quote 11.6 billions barrels "mostly likely" in total reserves.

They need to do a hell of alot of drilling to firm that up, & its quite irresponsible of the ASX to allow such "blue sky hype".

NDO is not going to surpass WPL anytime soon & thats what they are suggesting!

NDO & OEL have big acreage, & are next door to each other, & OEL have there own elephant targets (maybe bigger than NDO?)

Food for thought down the track, NDO & OEL have permits that the majors will want in on, so both are in the prime position to benefit.

OEL has Santa Rosa, Argentina in its portfolio & theres more chance of us finding a billion barrels there than NDO will with there deep sea drilling!

boxing_beaver

08-05-2008, 02:32 PM

anyone good with charts able to post one for OEL with some commentary?
currently reading a couple of books on TA but Im not finding it easy :P

AMR

08-05-2008, 02:44 PM

anyone good with charts able to post one for OEL with some commentary?
currently reading a couple of books on TA but Im not finding it easy :P

Refer to my post on the previous page:

1. Since May 07, Otto has tracked sideways, but was being accumulated. This was quite obvious from the OBV indicator.
2. Otto broke out on decent volume yesterday when it closed above the resistance of 40c. This is a very bullish sign.

boxing_beaver

08-05-2008, 03:50 PM

sweet, what do RSI & ROC indicators tell us? nothing in particular?

Liking the sustained increase in volume this week

AMR

08-05-2008, 04:08 PM

sweet, what do RSI & ROC indicators tell us? nothing in particular?

Liking the sustained increase in volume this week

They will in fact be telling you to sell because the stock has already rallied so much and is overbought. In this case they would only serve to confuse you.

I am not too much of a fan of using oscillators. They're good for hoping into a trend midway and trading ranges, but not for breakout systems like mine.

shasta

12-05-2008, 05:51 PM

They will in fact be telling you to sell because the stock has already rallied so much and is overbought. In this case they would only serve to confuse you.

I am not too much of a fan of using oscillators. They're good for hoping into a trend midway and trading ranges, but not for breakout systems like mine.

FPSO arrives at Galoc :D

http://www.stocknessmonster.com/news-item?S=OEL&E=ASX&N=406584

AMR

14-05-2008, 12:25 PM

Why a trading halt? I thought they were cashed up?:eek:

Huang Chung

14-05-2008, 12:33 PM

No doubt about it.......'proposed capital raising'

ritchie

14-05-2008, 12:42 PM

excuse ignorance...will mean what

shasta

14-05-2008, 05:41 PM

excuse ignorance...will mean what

OEL had $6.7M cash as at 31 March, & Admin costs last quarter were $1.1m

Exploration & Development costs for this quarter were meant to be $4.8m

We should get the $US12.6m bond back around first oil, so im not sure what the funds they require are for, given the large amount of capital raised over the last 12 months.

Must be looking to buy into something big IMO?

tricha

14-05-2008, 09:45 PM

OEL had $6.7M cash as at 31 March, & Admin costs last quarter were $1.1m

Exploration & Development costs for this quarter were meant to be $4.8m

We should get the $US12.6m bond back around first oil, so im not sure what the funds they require are for, given the large amount of capital raised over the last 12 months.

Must be looking to buy into something big IMO?

They need the cash ASAP to fast track drilling in Italy and Argentina is my best guess. They can ill afford to wait for cash flow from Galoc and Turkey.

How else can they catch up to Woodside ;)

shasta

14-05-2008, 10:06 PM

They need the cash ASAP to fast track drilling in Italy and Argentina is my best guess. They can ill afford to wait for cash flow from Galoc and Turkey.

How else can they catch up to Woodside ;)

The Gazatta-1 drill isnt until Sept, & Argentina is likely to be either Q4 2008 or Q1 2009 (Oct08 - Mar 09 sometime)

The Italian permit is only around $A10m all up & drilling in Santa Rosa is approx $US1m per drill...

The Galoc bond refund will fund this alone!

OEL will have revenues in excess of $A30m per quarter (conservative) when Galoc is producing at least 15,000bopd (OEL 3300bopd net*)

* Could be as much as 4000bopd (Ive seen NDO total figures at 17,500 - 18,000 bopd)

Galoc Production Company will be selling the oil at around a $5 - 10 discount to the Brent price (currently over $US120/bbl)

I'm wondering whether they want the funds to fast track Calauit whilst the POO is well over $US100/bbl?

They have raised a hell of lot of cash over the last 12 months!

tricha

14-05-2008, 10:10 PM

The Gazatta-1 drill isnt until Sept, & Argentina is likely to be either Q4 2008 or Q1 2009 (Oct08 - Mar 09 sometime)

The Italian permit is only around $A10m all up & drilling in Santa Rosa is approx $US1m per drill...

The Galoc bond refund will fund this alone!

OEL will have revenues in excess of $A30m per quarter (conservative) when Galoc is producing at least 15,000bopd (OEL 3300bopd net*)

* Could be as much as 4000bopd (Ive seen NDO total figures at 17,500 - 18,000 bopd)

Galoc Production Company will be selling the oil at around a $5 - 10 discount to the Brent price (currently over $US120/bbl)

I'm wondering whether they want the funds to fast track Calauit whilst the POO is well over $US100/bbl?

They have raised a hell of lot of cash over the last 12 months!

Great to see u r doing your homework Shasta :)

shasta

14-05-2008, 10:16 PM

Great to see u r doing your homework Shasta :)

OEL is my favourite oiler due to its sheer potential.

I make it my business to know a company inside out before buying into it.

As an aside i'm looking very hard at BPT, seems cheap to me...

Did you read the NDO Galoc update after close?

Bad whether has caused the FPSO to head to calmer waters :confused:

kura

15-05-2008, 11:49 AM

39 cents, not too steep a discount, pity that existing holders didn't get a chance to top up at 39 cents (via SPP or similar)

ronthepom

15-05-2008, 11:56 AM

39 cents, not too steep a discount, pity that existing holders didn't get a chance to top up at 39 cents (via SPP or similar)

Would have to agree Kura, always the way eh?

shasta

15-05-2008, 05:22 PM

Would have to agree Kura, always the way eh?

A 4th gas find in 4 drills & the SP is up to 45c, so i'm not too concerned about the placement at 39c.

OEL has the ability to raise cash seemingly at will!

The party's only just getting started! :p

http://www.stocknessmonster.com/news-item?S=OEL&E=ASX&N=407018

http://www.stocknessmonster.com/news-item?S=OEL&E=ASX&N=407022

tricha

15-05-2008, 07:16 PM

AMR

15-05-2008, 07:32 PM

I'm going to put my neck on the line and say they will never go below 40 again! The market was suitably impressed with the capital raising surprisingly.

tricha

15-05-2008, 07:32 PM

http://www.brr.com.au/event/45652

shasta

15-05-2008, 07:33 PM

I'm going to put my neck on the line and say they will never go below 40 again! The market was suitably impressed with the capital raising surprisingly.

Part of me hopes you are right, & the greedy part says "one more" top up opportunity would be nice :cool:

Oiler

15-05-2008, 08:23 PM

Part of me hopes you are right, & the greedy part says "one more" top up opportunity would be nice :cool:

Shasta the greedy part of me says I hope you dont get your wish :p

OEL is on a roll. Interesting times ahead, in particular Argentina !!

Oiler

shasta

15-05-2008, 08:34 PM

Shasta the greedy part of me says I hope you dont get your wish :p

OEL is on a roll. Interesting times ahead, in particular Argentina !!

Oiler

The gas assets will be producing far more than first thought, with 7 strikes now to tie back in... (1 more to go?)

Wonder what this will be worth to OEL, must be > $US10m p.a ???

Lets sell the 35% to IPM, & drill a hundred wells in Santa Rosa :D:eek::p

brettdale

15-05-2008, 08:40 PM

It seems all good news for this company, perhaps i should get rid of my RAU and buy some OEL instead.

tricha

15-05-2008, 09:13 PM

It seems all good news for this company, perhaps i should get rid of my RAU and buy some OEL instead.

That's your call Brettdale, for me Otto is my next MCR, 10 bagger ;)

It's got so much going for it, quite amazing for a young company like this.

OEL - Otto Encounters Gas in Arpaci-2 in Turkey - Mr Alex Parks, CEO
http://www.brr.com.au/event/45652 (http://www.brr.com.au/event/45652)

I heard they have pinched one of NZO top guys?

Wysiwyg

15-05-2008, 09:13 PM

Looks like the love is being shared around with share holders realising solid price gains and the sophisticates getting a handsome discount to present price.Is the sky the limit in the long term with oil prices capable of dropping?They`re certainly doing alot right at the moment.
My 2 cents.

shasta

15-05-2008, 09:15 PM

It seems all good news for this company, perhaps i should get rid of my RAU and buy some OEL instead.

I've been tingering around with my OEL cashflow spreadsheet & i get a conservative daily revenue figure of $A400,000*, when Galoc comes online late May/early June. (equates to around $A36m per quarter)

* Assumes:
1. $US108/bbl (Galoc oil will be sold at a small discount to the Brent price)
2. FX rate AUD/USD = 0.90
3. Flow rate of 18,000bopd (3290 net to OEL)

OEL is still well undervalued, so you won't go wrong buying them!

AMR

16-05-2008, 03:39 PM

First time I seen a stock skyrocket after a rights placement...that must have been pretty smart money from Euroz.

tricha

16-05-2008, 05:12 PM

First time I seen a stock skyrocket after a rights placement...that must have been pretty smart money from Euroz.

Might have something to do with the latest gas find annouced a few hours later, or maybe this boardroom commentry, I have listened to it 6 times now, it just out there, the potential. ;)

OEL - Otto Encounters Gas in Arpaci-2 in Turkey - Mr Alex Parks, CEO
http://www.brr.com.au/event/45652 (http://www.brr.com.au/event/45652)

Oiler

16-05-2008, 07:45 PM

Might have something to do with the latest gas find annouced a few hours later, or maybe this boardroom commentry, I have listened to it 6 times now, it just out there, the potential. ;)

OEL - Otto Encounters Gas in Arpaci-2 in Turkey - Mr Alex Parks, CEO
http://www.brr.com.au/event/45652 (http://www.brr.com.au/event/45652)

Tricha...if only I had bought more a few months back when I first got into this stock.. ave buy in @ 25.5

Oiler

tricha

17-05-2008, 01:43 AM

Tricha...if only I had bought more a few months back when I first got into this stock.. ave buy in @ 25.5

Oiler

It seems u should be creaming it Oiler, all your oilers are going off ;)

h2so4

17-05-2008, 11:08 AM

I make it my business to know a company inside out before buying into it.

As an aside i'm looking very hard at BPT, seems cheap to me...

As a further aside, "why,why,why?"

shasta

19-05-2008, 08:47 PM

As a further aside, "why,why,why?"

I'll address that question on the BPT thread for you H2so4.

Meanwhile OEL breaches 50c & closes above 50c for the first time! :eek:

http://www.asx.com.au/asxcharting/CisServGif?RequestType=ByName&UseSession=False&GifResponse=image&fresh=false&extgif=true&caller=sharenet&volval=VOL&periods=D6&spread=LAST&siafsec1=S&sec1=OEL&divn1=0&siafsec2=I&sec2=XJO&divn2=0&siafsec3=I&sec3=MA&divn3=0&extcsv=false&reducefact=80&fromdate=19/11/2007&todate=19/05/2008

mark100

20-05-2008, 02:20 AM

shasta

20-05-2008, 03:05 PM

Don't want to spoil the OEL party but I reckon it pays to remember what happened to AZA and AED as they approached production and then what happened after production started. Both share prices run hard in the lead up and then both companies weren't able to produce at the rate they expected. I know of very few O&G projects that come on-line as planned.

Not saying that OEL's run won't continue, just remember that oil production is a tricky game

Quite true, in fact OEL realised this regarding the Calauit field where they have a large stake in it & as operator decided to delay bringing this into production.

Following the NDO announcements suggests things have gone better than expected at the Galoc field.

tricha

21-05-2008, 07:25 AM

Don't want to spoil the OEL party but I reckon it pays to remember what happened to AZA and AED as they approached production and then what happened after production started. Both share prices run hard in the lead up and then both companies weren't able to produce at the rate they expected. I know of very few O&G projects that come on-line as planned.

Not saying that OEL's run won't continue, just remember that oil production is a tricky game

Hmm, from well tests Mark, looked like they exceeded expectations, my money is on a another Tui, but u r quite right, there are no gaurantees in this game.
We will all know shortly, unfortunately, if u wait to long, the train might has left the station and u r left kicking the wall ;)

mark100

21-05-2008, 09:20 AM

Tricha AED's tests exceeded expectations as well. As did WPL and HDR in Mauritania. But it didn't last long. Thats all I was pointing out in my post.

I don't care if the train has left the station, I was a buyer on 4 Apr 08 at 31c but will hit the sell button at the first sign of any problems

AMR

21-05-2008, 09:53 AM

AED did take a fair while to fall. It's not like we're looking at a 40% fall overnight so there's plenty of time to get off the train.

mark100

21-05-2008, 09:57 AM

AED did take a fair while to fall. It's not like we're looking at a 40% fall overnight so there's plenty of time to get off the train.

Exactly, thats why you sell at the first sign of trouble. Because the companies normally put a positive spin on it saying the problems can be overcome etc and the price holds up ok until reality sets in.

Anyway now I've rasied the issue OEL will probably have a faultless start to production

shasta

21-05-2008, 08:20 PM

Exactly, thats why you sell at the first sign of trouble. Because the companies normally put a positive spin on it saying the problems can be overcome etc and the price holds up ok until reality sets in.

Anyway now I've rasied the issue OEL will probably have a faultless start to production

Galoc update out, slight delay due to bad weather...

http://www.stocknessmonster.com/news-item?S=NDO&E=ASX&N=407700

ritchie

23-05-2008, 01:20 PM

Hi all.

Thinking out aloud and would like some comments.

Re the options for nzood.

Do people see more value and future in OEL or NZO.

Thinking of selling OEL to fund NZOOD conversion.

Cheers.

shasta

23-05-2008, 03:53 PM

Hi all.

Thinking out aloud and would like some comments.

Re the options for nzood.

Do people see more value and future in OEL or NZO.

Thinking of selling OEL to fund NZOOD conversion.

Cheers.

Here goes: (I held NZO for 3 years before selling to buy OEL, by the way!)

Oil wise, NZO offers you say ~5000bopd from Tui, whereas OEL will soon be ~3500bopd from Galoc (both had similar initial 2P reserves, before the Tui upgrades)

NZO is approx 3 times the market cap of OEL, on a fully dilluted basis.

NZO offers indirect exposure to Hard Coking Coal (via PRC), as well as the upcoming KUPE Gas/LNG/Condensate project (worth approx double the value of Tui to NZO), it also has an interesting exploration program.

OEL has the Turkish* & Italian Gas permits, & oil exploration wise has great permits in the Phillipines, & especially in Argentina.

* The Turkish Gas assets have 7 discoveries that will be in production in 2009, & i think theres 1 more drill to go?

NZO has large revenue/cashflows already & has a steady income stream for another 10 -15 years, & also pays a dividend.

Hard to call NZO a mature producer when it hasnt been a producer for 12 months yet, but i would consider it 12 months ahead of OEL.

NZO was around $1NZ when it became a producer & PRC was also around $1, both are now around $1.60NZ.

OEL is currently just under 50c & wil re-rate significantly during the next quarter when the market sees the revenue/cashflow in the bank.

Chartwise both are looking good, so in answer to your question, perhaps the smart play would be to sell some of your options & buy some OEL & convert some NZO options? (Thats just my opinion :D)

That way you have $1 each way, i believe OEL will outperform NZO over the next 12 months, remembering the NZO option conversion will create a bit of an overhang & SP pressure, as people sell heads to convert options.

OEL has better exploration targets IMO & thus huge potential to potentially overtake NZO's market cap, especially on a large oil discovery in Argentina/Phillipines, but this could be a year or two away.

NZO is in the NZSX50 so has institutional support, OEL isnt quite big enough to attract that kind of attention....YET!

Hope this helps, you cant go too far wrong with either! :)

ritchie

23-05-2008, 09:44 PM

cheers.....much appreciatted.

tricha

23-05-2008, 11:52 PM

Hi all.

Thinking out aloud and would like some comments.

Re the options for nzood.

Do people see more value and future in OEL or NZO.

Thinking of selling OEL to fund NZOOD conversion.

Cheers.

I have both NZO and OEl.

NZO is money in the bank, should double in price.:D

OEL could be money in the bank, could go to $4.00 :rolleyes:

KIS

AMR

26-05-2008, 08:44 PM

Galoc can't come soon enough for me! What sort of PE will this baby be on once Galoc comes online?

tricha

27-05-2008, 07:24 PM

Galoc can't come soon enough for me! What sort of PE will this baby be on once Galoc comes online?

Low and lower when the gas comes on line will mean it is not a one line company :p

27 May 2008
Australian Securities Exchange
By ASX online

Ikihoyuk-1 Gas Test Western Turkey

Joint venture partners Otto Energy (ASX: OEL) and Incremental
Petroleum (ASX: IPM) announce that the Ikihoyuk-1 well was flow
tested on 23rd and 24th May.

Highlights

• Ikihoyuk-1 flowed dry gas at rates up to 3.8 MMscf/d gas over
the interval 444m – 453m on a 38/64” inch choke

• This rate is the highest so far seen from Otto’s Edirne wells
and is from only 1 of 3 similar zones in this well

Ikihoyuk-1 was the first well drilled as part of a campaign designed to
prove up significant volumes of gas to enable a combination of these
gas discoveries to be placed on production by mid-2009.
The recently drilled gas discoveries Ikihoyuk-1, Kuzey Arpaci-1 and
the original discovery well Arpaci-1 will be tested in succession in the
coming weeks before returning to the Arpaci-2 location for a re-drill of
that gas well.
The partners in the Edirne Gas project are Otto Energy 35%, and
Joint Operators Incremental Petroleum 55%, and Turkish partner
Petraco 10%.

HIGHLIGHTS

• Strong board and
management.
• World class portfolio across
4 countries.
• Imminent production from
Galoc at 3000-4000 bopd
net to Otto.
• 6-10 well exploration
campaign in 2008.
• Opportunity rich with
- 8 discoveries
- 16 prospects
- Over 60 leads
in the portfolio.

The attached release from the Joint Operator Incremental Petroleum
provides further information on the Ikihoyuk-1 gas well test.
Following the successful test, Alex Parks, Otto CEO, comments: “the
Ikihoyuk-1 test confirms significant flow potential and is another
important step toward the commercialisation of gas in the Edirne
license”

Yours faithfully

_________________
Alex Parks

Chief Executive Officer
For further information visit Otto’s website www.ottoenergy.com or
contact:
Jill Thomas
Investor Relations
Otto Energy
+61 (0) 8 6467 8800
thomas@ottoenergy.com

ABN: 38 115 711 601

20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831
Ph: +618 9481 8696 Fx: +618 9481 2394

27 May 2008
Australian Securities Exchange (ASX)
By ASX online

Ikihoyuk-1 tests significant gas flow rates.

Joint Venture partners Incremental Petroleum (IPM) and Otto Energy
(OEL) are pleased to announce significant gas flow rates from the
recently tested exploration well, Ikihoyuk-1.

Highlights:

�� Ikihoyuk-1 flowed dry gas at rates of up to 3.8 MMscf/d over the
interval 444m to 453m through a 38/64” choke.

�� This interval is one of three gas pay zones in the well.

�� This is the best flow rate recorded in wells in the Edirne licence area
to date.

Ikihoyuk-1 was the first well drilled as part of a campaign designed to
prove up significant volumes of gas to enable a combination of these
gas discoveries to be placed on production by mid 2009.
Following completion of the production test, the rig will be moved to the
second gas discovery well, Kuzey Arpaci-1 for testing. Arpaci 1 (2006) will
also be tested before returning to the Arpaci-2 location to re-drill the
well.
The partners in the Edirne Gas project are Incremental Petroleum 55%,
Otto Energy 35% and Petraco Energi 10%.
Gerard McGann
Managing Director

ABN: 38 115 711 601

20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831
Ph: +618 9481 8696 Fx: +618 9481 2394

Figure 1. Schematic of Ikihoyuk-1 well, test flare, and tested interval from logs.

clearasmud

27-05-2008, 10:15 PM

still Otto only values turkish gas at 2c a share.
hard to get to excited about that but could it end up being a lot more?

shasta

27-05-2008, 10:31 PM

still Otto only values turkish gas at 2c a share.
hard to get to excited about that but could it end up being a lot more?

Previous estimates for the 3 old discoveries were around $US3-5m p.a

Given the now 7 gas discoveries to date, & 2 exceptional finds, i'd be inclined to treble the previous figures, so at least $US10m p.a

I also take issue with previous broker valuations, which do not adequately include a risked/unrisked value on Santa Rosa.

It's lazy to just quote a nominal figure :confused:

tricha

27-05-2008, 10:41 PM

still Otto only values turkish gas at 2c a share.
hard to get to excited about that but could it end up being a lot more?

WELL that is what IPM shareholders suggest Clearasmud, exciting. huge value.
That is what they are banking on,

Where as Otto just boggies on :rolleyes: To many strings to their bow.:p

Wysiwyg

28-05-2008, 11:20 PM

The flow rates from Bati Umur-1 and Koyutsu are as below and given the present drilling campaign flow rates it I will be interested to see what the total rate of production will be once the wells are tied in (they are doing that aren`t they) for production in `09.

We believe our production estimates for the project are conservative given the Bati Umur-1 and Koyutsu-1 wells were successfully flow tested in 2007 at 3.0mmcf/d and 2.0mmcf/d respectively.

ALSO it pays to keep the feet on the ground too .... ;)

Otto is strategically placed with...
• funding via imminent production
• Strong management and experienced technical team
• highly prospective asset portfolio
• an active exploration program

Together, with a little bit of luck and exploration success, this will translate into significant shareholder return.

Converted capital into a production asset that should leave Otto essentially self funding from this point forward.

I can`t see production expectations being met at Galoc, and I think that because almost every oiler I have studied over the last 4 years has expected more and produced less.

clearasmud

28-05-2008, 11:36 PM

WELL that is what IPM shareholders suggest Clearasmud, exciting. huge value.
That is what they are banking on,

Where as Otto just boggies on :rolleyes: To many strings to their bow.:p

did you mention Bow.
I like Otto and Bow.
2c to otto is 20c to ipm
3c to otto is 30c to ipm etc
(as 1/7th # of shares and 55% more ownership of leases)

shasta

28-05-2008, 11:43 PM

The flow rates from Bati Umur-1 and Koyutsu are as below and given the present drilling campaign flow rates it I will be interested to see what the total rate of production will be once the wells are tied in (they are doing that aren`t they) for production in `09.

ALSO it pays to keep the feet on the ground too .... ;)

I can`t see production expectations being met at Galoc, and I think that because almost every oiler I have studied over the last 4 years has expected more and produced less.

I think the Galoc Production Company has been realistic with the anticipated flow rates, remember 2 of the 4 wells flow about 11,000bopd between them & were to be choked back.

The 15,000, 17,500 & 18,000 bopd figures i've seen quoted could be light?

Notice OEL expect 3300 bopd net but have stated 3000 - 4000 bopd on there announcements?

If they can keep the water cut low (like the Tui field) then 20,000 bopd isnt out of the question?

Lets hope the bad weather has gone & the hook up all went well.

After what happened to AED, i'm sure all imminent producers will be extremely cautious knowing they will be severely punished for any nasty surprises.

Wysiwyg

29-05-2008, 12:21 AM

I think the Galoc Production Company has been realistic with the anticipated flow rates, remember 2 of the 4 wells flow about 11,000bopd between them & were to be choked back.

Right you are shasta,

a conservative flow rate or reserve estimate would be much better to present to the share holders i believe.

In the event of them being higher then that would be an excellent boost to market confidence in the "company delivers" phase.Instead, many set themselves up for a fall when the facts come out.Not being negative just keeping them honest.:)

shasta

29-05-2008, 06:37 PM

Right you are shasta,

a conservative flow rate or reserve estimate would be much better to present to the share holders i believe.

In the event of them being higher then that would be an excellent boost to market confidence in the "company delivers" phase.Instead, many set themselves up for a fall when the facts come out.Not being negative just keeping them honest.:)

Galoc update (via NDO)

http://www.stocknessmonster.com/news-item?S=NDO&E=ASX&N=408492

tricha

29-05-2008, 07:40 PM

Galoc update (via NDO)

http://www.stocknessmonster.com/news-item?S=NDO&E=ASX&N=408492

Good one Shasta, proof in the pudding very shortly.:)

AMR

02-06-2008, 04:14 PM

OEL going for a bit of a run today! +5c.

shasta

02-06-2008, 05:37 PM

OEL going for a bit of a run today! +5c.

Nice jump today was enough to hit an old sell order, am still a bit concerned with the markets in general with the DOW & the POO.

A nice profit none the less, & i shall return when i know all is well with Galoc & the flow rates are known.

Have other short term targets :cool:

My selling of OEL, does not change my sentiment at all.

OEL is the real deal, & 2008 will be a great year :D

shasta

04-06-2008, 04:25 PM

Nice jump today was enough to hit an old sell order, am still a bit concerned with the markets in general with the DOW & the POO.

A nice profit none the less, & i shall return when i know all is well with Galoc & the flow rates are known.

Have other short term targets :cool:

My selling of OEL, does not change my sentiment at all.

OEL is the real deal, & 2008 will be a great year :D

Galoc update (via NDO)

http://www.stocknessmonster.com/news-item?S=NDO&E=ASX&N=409178

Gas flow from the 2nd well

http://www.stocknessmonster.com/news-item?S=OEL&E=ASX&N=409101

tricha

04-06-2008, 04:33 PM

And yes oil to flow soon as WELL, then we will see some excitement!;)

4 June 2008

Otto Flows Gas from Second Well - Kuzey Arpaci-1
Edirne, Western Turkey

Joint venture partners Otto Energy (ASX: OEL) and Incremental
Petroleum (ASX: IPM) announce that the Kuzey Arpaci-1 well has
tested at excellent flow rates from a tested section of only 5m in the
lower reservoir.

Highlights

• Kuzey Arpaci-1 flowed dry gas at a rate of 1.15 MMscf/d over
the interval 462.8m to 467.5m at a stabilized rate of 1.15
MMscfg/d through a ½ inch choke.

• Another, shallower reservoir section is also present in this
well and will be available for future production.

• This is the second confirmed commercial flow rate from the
Edirne discovery wells.

Following the shut in period additional perforations will be added and
the well will be flowed again and prepared as a future production well.
The rig will then move to test the Arpaci 1 well, which was drilled in
January 2006, before the 3D seismic was available.

HIGHLIGHTS

• Strong board and
management.
• World class portfolio across
4 countries.
• Imminent production from
Galoc at 3000-4000 bopd
net to Otto.
• 6-10 well exploration
campaign in 2008.
• Opportunity rich with
- 8 discoveries
- 16 prospects
- Over 60 leads
in the portfolio.

The partners in the Edirne Gas project are Otto Energy 35% and Joint Operators
Incremental Petroleum (55%) and Petraco Energy (10%).
The attached release from Incremental Petroleum provides further information on
the Kuzey Arpaci-1 well test.
Yours faithfully

_________________
Alex Parks

Chief Executive Officer
For further information visit Otto’s website www.ottoenergy.com or contact:
Jill Thomas
Corporate & Investor Relations Manager
Otto Energy
+61 (0) 8 6467 8800
0439 440 016

thomas@ottoenergy.com

[Type text]

4th June 2008
Australian Securities Exchange (ASX)
By ASX online

Incremental again has excellent gas rates in West Turkey well No.
2 partial test

Incremental Petroleum (ASX: IPM) and Otto (ASX: OEL) are pleased to announce
that the Kuzey Arpaci 1 well has tested at excellent rates from a tested section of
only 5m in the lower reservoir. Incremental is the joint operator and holds 55%
interest in the Edirne gas project.
The interval 462.8 to 467.5m flowed at a stabilized rate of 1.15 mmscfg/d through a
½” choke. After the shut in period additional perforations will be added, the well will
be flowed again and prepared as a future production well. Another, shallower
reservoir section is also present in this well and will be available for future production.
The rig will then move to test Arpaci 1, which was drilled in January 2006, before the
3D seismic was available. The log interpretation on this well is ambiguous, and the
purpose of the test will be to determine if gas is present. In the event that the test is
wet, it will have no impact on the JV development plans, where we are rapidly
moving towards monetizing this significant asset.
The partners in the Edirne Gas project are Incremental Petroleum 55%, Otto Energy
35% and Petraco Energy (10%), who are also the joint operator with Incremental.
Gerard McGann
Managing Director

[Type text]

ORTAKCI
IKIHOYUK
ARPACI 2
KUZEY
ARPACI

0 5 km

3D AREA

LICENCE
BOUNDARY

LOCATION MAP

ARPACI 1

Figure 1: Location of four wells in 2008 Edirne drilling campaign

[Type text]

shasta

11-06-2008, 07:24 PM

And yes oil to flow soon as WELL, then we will see some excitement!;)

4 June 2008
Otto Flows Gas from Second Well - Kuzey Arpaci-1
Edirne, Western Turkey
Joint venture partners Otto Energy (ASX: OEL) and Incremental
Petroleum (ASX: IPM) announce that the Kuzey Arpaci-1 well has
tested at excellent flow rates from a tested section of only 5m in the
lower reservoir.
Highlights

•

Kuzey Arpaci-1 flowed dry gas at a rate of 1.15 MMscf/d over

the interval 462.8m to 467.5m at a stabilized rate of 1.15
MMscfg/d through a ½ inch choke.
•

Another, shallower reservoir section is also present in this

well and will be available for future production.
•

This is the second confirmed commercial flow rate from the

Edirne discovery wells.
Following the shut in period additional perforations will be added and
the well will be flowed again and prepared as a future production well.
The rig will then move to test the Arpaci 1 well, which was drilled in
January 2006, before the 3D seismic was available.
HIGHLIGHTS
• Strong board and
management.
• World class portfolio across
4 countries.
• Imminent production from
Galoc at 3000-4000 bopd
net to Otto.
• 6-10 well exploration
campaign in 2008.
• Opportunity rich with
- 8 discoveries
- 16 prospects
- Over 60 leads
in the portfolio.
The partners in the Edirne Gas project are

Otto Energy 35% and Joint Operators

Incremental Petroleum (55%) and Petraco Energy (10%).
The attached release from Incremental Petroleum provides further information on
the Kuzey Arpaci-1 well test.
Yours faithfully
_________________
Alex Parks
Chief Executive Officer
For further information visit Otto’s website www.ottoenergy.com or contact:
Jill Thomas
Corporate & Investor Relations Manager
Otto Energy
+61 (0) 8 6467 8800
0439 440 016
thomas@ottoenergy.com
[Type text]
4th June 2008
Australian Securities Exchange (ASX)
By ASX online
Incremental again has excellent gas rates in West Turkey well No.
2 partial test
Incremental Petroleum (ASX: IPM) and Otto (ASX: OEL) are pleased to announce
that the Kuzey Arpaci 1 well has tested at excellent rates from a tested section of
only 5m in the lower reservoir. Incremental is the joint operator and holds 55%
interest in the Edirne gas project.
The interval 462.8 to 467.5m flowed at a stabilized rate of 1.15 mmscfg/d through a
½” choke. After the shut in period additional perforations will be added, the well will
be flowed again and prepared as a future production well. Another, shallower
reservoir section is also present in this well and will be available for future production.
The rig will then move to test Arpaci 1, which was drilled in January 2006, before the
3D seismic was available. The log interpretation on this well is ambiguous, and the
purpose of the test will be to determine if gas is present. In the event that the test is
wet, it will have no impact on the JV development plans, where we are rapidly
moving towards monetizing this significant asset.
The partners in the Edirne Gas project are Incremental Petroleum 55%, Otto Energy
35% and Petraco Energy (10%), who are also the joint operator with Incremental.
Gerard McGann
Managing Director
[Type text]
ORTAKCI
IKIHOYUK
ARPACI 2
KUZEY
ARPACI
0 5 km
3D AREA
LICENCE
BOUNDARY
LOCATION MAP
ARPACI 1
Figure 1: Location of four wells in 2008 Edirne drilling campaign
[Type text]

Weekly update via NDO

http://www.stocknessmonster.com/news-item?S=NDO&E=ASX&N=409924

ELYOB

12-06-2008, 08:18 PM

Euroz report out today becoming more conservative target 12 months 60c .... but indicate lots of possible farmouts of big Palawan plays by Sept quarter which could be very interesting.......looking for $1 longer term . High entry price atm 41c is speculative in their view ......

AMR

12-06-2008, 09:10 PM

Just done a double top pattern too...I should have been more attentive in this case and gotten out at 48. Bah!

shasta

12-06-2008, 09:14 PM

Just done a double top pattern too...I should have been more attentive in this case and gotten out at 48. Bah!

I got out at an average of 48c, or 50% profit...

Am waiting til Galoc is up & producing at intended flow rates before returning.

Though i wasn't in AED, it stills remains a constant reminder that things do go wrong in the O&G game...

Doesn't mean OEL won't fly, cos it will & i wouldnt miss the Santa Rosa drilling for anything (though it may be 2009 now?).

AMR

12-06-2008, 09:30 PM

Yes this stock is beginning to test my patience. One mistake OEL, and you'll become VPEO. The mistake being either commissioning delays/problems at Galoc or a close below 40.

ritchie

13-06-2008, 12:13 PM

Question...at begining of trade there was a buyer at 60 and one at 50.........and a seller at 41.

Why would someione want to buy at 60......is it top of the buy list gets the seller at 41.....

If you put a buy order in at 60 and there is a seller at 41......do4es the broker sell at 41 or 60.

Learning all the time

AMR

13-06-2008, 01:39 PM

shasta

16-06-2008, 05:57 PM

The ASX works out an equilibrium price and that's the opening price...

OEL Gas update...

http://www.stocknessmonster.com/news-item?S=OEL&E=ASX&N=410267

shasta

18-06-2008, 08:51 PM

OEL Gas update...

http://www.stocknessmonster.com/news-item?S=OEL&E=ASX&N=410267

Weekly Galoc update (via NDO)

http://www.stocknessmonster.com/news-item?S=NDO&E=ASX&N=410665

shasta

23-06-2008, 12:15 PM

Weekly Galoc update (via NDO)

http://www.stocknessmonster.com/news-item?S=NDO&E=ASX&N=410665

Galoc - Operational Update

http://www.stocknessmonster.com/news-item?S=OEL&E=ASX&N=411047

AMR

23-06-2008, 12:55 PM

Bah! Another typhoon...not having the best of luck with weather this year are we...

shasta

23-06-2008, 01:18 PM

Bah! Another typhoon...not having the best of luck with weather this year are we...

I've had many regrets whether i did the right thing in selling OEL, but now i feel getting out at 48c & waiting for confirmation that the oil is flowing was the right move.

First oil now likely in July, still i want to wait & make sure all is well before buying back in.

shasta

25-06-2008, 07:31 PM

I've had many regrets whether i did the right thing in selling OEL, but now i feel getting out at 48c & waiting for confirmation that the oil is flowing was the right move.

First oil now likely in July, still i want to wait & make sure all is well before buying back in.

NDO's weekly Galoc update

http://www.stocknessmonster.com/news-item?S=NDO&E=ASX&N=411480

tricha

25-06-2008, 08:32 PM

I've had many regrets whether i did the right thing in selling OEL, but now i feel getting out at 48c & waiting for confirmation that the oil is flowing was the right move.

First oil now likely in July, still i want to wait & make sure all is well before buying back in.

Wrong move Shasta, Exxon is snooping around the Phillippines.:p

Stockanalysis rates them as a steal under 80 cents.:rolleyes:

By the time thay are pumping u will be to late ;)

shasta

25-06-2008, 08:37 PM

Wrong move Shasta, Exxon is snooping around the Phillippines.:p

Stockanalysis rates them as a steal under 80 cents.:rolleyes:

By the time thay are pumping u will be to late ;)

I won't miss Santa Rosa, but as for Galoc i'll wait a bit longer.

If it runs so be it :o

tricha

25-06-2008, 08:41 PM

I won't miss Santa Rosa, but as for Galoc i'll wait a bit longer.

If it runs so be it :o

Not if someone like Exxon beats u to it, remember its also a take over target with all these bows attached to it :p

shasta

25-06-2008, 08:53 PM

Not if someone like Exxon beats u to it, remember its also a take over target with all these bows attached to it :p

The Germans own what around 37% of OEL, & are from there own words "long term investors".

The majors will only get a look in with OEL on a farm in arrangement re Phillipines

i'd imagine Alex Parks is looking for a deal like 100% of costs for a 70% equity farm in, with OEL retaining a free carry 30% position.

First sign of a major sniffing around & ill be back :p

tricha

25-06-2008, 09:10 PM

The Germans own what around 37% of OEL, & are from there own words "long term investors".

The majors will only get a look in with OEL on a farm in arrangement re Phillipines

i'd imagine Alex Parks is looking for a deal like 100% of costs for a 70% equity farm in, with OEL retaining a free carry 30% position.

First sign of a major sniffing around & ill be back :p

Top 20 shareholders

http://www.ottoenergy.com/images/2ndignUp.jpg (http://www.ottoenergy.com/investorCentre/mailingList.html)http://www.ottoenergy.com/images/spacer.gif
Rank
Name

Units
% of Issued
Capital
1
HSBC CUSTODY

109,053,431

24.85

2
SANTO HOLDING

69,884,956

15.93

3
CITICORP NOMINEES PTY LIMITED

13,929,768

3.17

4
SANTO HOLDINGS AG

10,115,044

2.31

5
ANZ NOMINEES LIMITED CASH INCOME A/C

9,421,697

2.15

6
CABLE NOMINEES PTY LTD

9,036,806

2.06

7
DALY FINANCE CORP BUDIN & ASSOCIES

8,150,000

1.86

8
ESCOT FINANCE LTD

8,150,000

1.86

9
RBC DEXIA INVESTOR SERVICES AUSTRALIA NOMINEES PTY LTD

7,724,790

1.76

10
CIM SPECIAL SITUATIONS FUND LIMITED

5,632,435

1.28

11
RBC DEXIA INVESTOR SERVICES AUSTRALIA NOMINEES PTY LTD

4,783,153

1.09

12
HSBC CUSTODY NOMINEES (AUST) LIMITED

4,755,803

1.08

13
RICK WAYNE CRABB & CAROL JEAN CRABB

4,531,250

1.03

14
J P MORGAN NOMINEES AUSTRALIA LIMITED

2,915,000

0.66

15
NATIONAL NOMINEES LIMITED

2,833,868

0.65

16
JB JETTER CONSULTANTS LIMITED

2,583,186

0.59

17
FORBAR CUSTODIANS LIMITED

2,546,922

0.58

18
MESSARA INVESTMENTS PTY LTD

2,420,000

0.55

19
TWYNAM AGRICULTURAL GROUP PTY LTD

2,350,000

0.54

20
DAVID CHAN

2,200,000

0.50

Total
As at 30 April 2008

283,018,109

64.50

shasta

07-07-2008, 06:18 PM

Ann's from today...

Galoc Update

http://www.stocknessmonster.com/news-item?S=OEL&E=ASX&N=412953

Phillipines Exploration Update

http://www.stocknessmonster.com/news-item?S=OEL&E=ASX&N=412956

Gas Shows - Turkey

http://www.stocknessmonster.com/news-item?S=OEL&E=ASX&N=412966

Notice of placement of shares

http://www.stocknessmonster.com/news-item?S=OEL&E=ASX&N=412975

shasta

09-07-2008, 09:43 PM

AMR

09-07-2008, 09:45 PM

Ooo...nice. Pity about the price action today, it broke 39.5, but fortunately there's a good and thick resistance zone for prices to bounce off. I say if you are keen on re-entering, the next few days might be good.

AMR

14-07-2008, 12:45 PM

Galoc update = First oil in August. :(

shasta

14-07-2008, 06:48 PM

Galoc update = First oil in August. :(

Here's the link...

http://www.stocknessmonster.com/news-item?S=OEL&E=ASX&N=413626

Am glad i got out at around 48c, i just kept having AED on my mind.

The market is punishing any delays, & if they can't meet forecast flow rates the SP will bear the brunt some more...:confused:

Plenty of time to get back in after digesting the June quarterly IMO.

So much to like, with the Turkish gas, Galoc oil, Phillipines farm in & the very promising Santa Rosa likely to be drilled early 09.

tricha

14-07-2008, 07:36 PM

Nido did a better job of explaining, the pictures say it all, it's just bad luck, another two weeks wait and then all go, trade them at your peril :D

http://www.stocknessmonster.com/news-item?S=NDO&E=ASX&N=413625

14 July 2008
Australian Securities Exchange Limited
Company Announcements Office
Level 4 Exchange Centre
20 Bridge Street
SYDNEY NSW 2000

Galoc Project Update
As reported in last week’s operations update, procedures for reconnection of the FPSO were underway with operations concentrating on replacing the retrieval line. Following the successful replacement of the retrieval line on Thursday, 10 July 2008, the mooring and riser system was lifted from the sea floor the following day.
During the lift, damage was revealed in a single 30 metre long section of the production riser (see attached photos). The production riser is built from replaceable 30m sections and a replacement section for the damage and two spare sections are currently being mobilised from Singapore, which will take approximately one week, followed by 10 days of work to repair the damaged riser. With this new scope of work now necessary, first oil is not expected before early August.
Nido’s Deputy Managing Director, Ms Joanne Williams, said "Prior to the passage of Typhoon Fengshen in June, we had less than two days of commissioning work to complete prior to first oil. First the typhoon itself, and then the resultant effects have lingered much longer than we would like, but while the resulting damage and the delay are frustrating, they remain short-term challenges only which can be remedied straight away. The silver lining can be found in the current record oil price which means that Nido will recover all costs expended during the development in only a couple of months once the field comes online."

The Technical Details – the mooring and riser system
The mooring and riser system consists of three lines coming from the sea-floor to the FPSO.

1. The "single point mooring" tether – anchors the FPSO to the sea-floor.

2. The 5" Production Riser – transports the flows from both wells from the wellheads to the FPSO and is connected at points to the tether.

3. The Umbilical Riser – contains several hydraulic control lines which operate the well control valves from the FPSO and is also connected at points to the tether.
Aquila Centre Level 3, 1 Preston Street Como WA 6152 P :+61 8 9474 0000 F: +61 8 9474 0099 www.nido.com.au Unit 38B, 38th Floor Philamlife Tower 8767 Paseo de Roxas Makati City 1226 Philippines P: +63 2 856 5910 F: +63 2 856 5494 ASX Code: NDO
The FPSO end of this mooring tether and riser system is raised and lowered to the sea-floor as a package by the retrieval line during connection and disconnection respectively. Normal operating procedure during disconnection is to maintain tension on the tether and riser system as it is lowered and laid along the sea-floor. This ensures the lines do not get tangled or overlie each other, which can cause difficulties on retrieval.

What went wrong?
During the disconnection ahead of Typhoon Fengshen, the majority of the mooring system was laid down smoothly. However, rough seas caused trouble with the laying down of approximately the final hundred metres of the mooring system. Upon returning to the field after the typhoon had passed, an ROV inspection showed that the three lines overlaid each other in certain places in the final hundred metres and that the retrieval line was irrevocably damaged. If the lines are not kept taut during the laying down following a disconnection, it is possible, depending on how the lines slump to the sea-floor, that the lines can be damaged at areas of overlap with other lines or at "kink" points in the line. Much like kinks in common garden hoses, this damage shows up as a flat spot in the line. A picture of the riser is attached and shows the local damage discovered during the ROV inspection.

Is there any other damage?
Damage to only one 30 metre section of the riser is visible from the ROV inspection, however, as a contingency, the Joint Venture is mobilising three replacement sections of riser to the field. Of the other 2 lines in the system, the mooring and umbilical line inspections show no damage. While the new riser sections are being mobilised, both the mooring and the umbilical will be fully tested for integrity and functionality to identify whether any undetectable damage has occurred.
Nido will continue to provide the market with regular updates on its operational activities and will notify the market immediately of material events.
Yours sincerely
Joanne Williams
Deputy Managing Director
Aquila Centre Level 3, 1 Preston Street Como WA 6152 P :+61 8 9474 0000 F: +61 8 9474 0099 www.nido.com.au Unit 38B, 38th Floor Philamlife Tower 8767 Paseo de Roxas Makati City 1226 Philippines P: +63 2 856 5910 F: +63 2 856 5494 ASX Code: NDO

For more information please contact:

Ms. Joanne Williams
Deputy Managing Director
Ph: +61 8 9474 0000
F: +61 8 9474 0099

www.nido.com.au Aquila Centre Level 3, 1 Preston Street Como WA 6152 P :+61 8 9474 0000 F: +61 8 9474 0099 www.nido.com.au Unit 38B, 38th Floor Philamlife Tower 8767 Paseo de Roxas Makati City 1226 Philippines P: +63 2 856 5910 F: +63 2 856 5494 ASX Code: NDO

Damage to riser section

Galoc Production SystemApprox. 1,600 metresSubseatreesMooring& Riser BasesMooringTetherProduction RiserSupport VesselOfftake TankerFPSO ‘Rubicon Intrepid’Damaged Area of Riser