OEL - (Otto) Multi based, Gambling Stock.

[Rabbi]

Well looks as though galoc will flow at or above per drill expectations this will start to generate some serious cash flow

http://www.ottoenergy.com/irm/Compan...UpdateNumber20

Couldn't agree more Boysy, with Galoc production Wells coming in on time and within budget, cashflow is likely to increase strongly. Bring on SC 55 and we have a real thrill and drill!

[boysy]

Certainly would be a lot of hype prior to drill we gotta get official clearance first then bhp need to get a rig sorted. One other thing to note the 12k bopd looks likely to be exceeded which would be great as long as no formation damage happens as a result.

[boysy]

Looks like sc 55 approval is about to be granted ball seems to be in bhp a court

http://www.asx.com.au/asxpdf/2013102...5227qv0nf3.pdf

[Corporate]

Otto currently in a halt pending resource news in East Africa...exciting times with:

Successful Galoc 2 development and gross production of 12k bopd.

BHP handing back 60% of SC55 and paying Otto $3m cash plus $24m on drilling a well...what a result given the situation

EAR basin heating up..look at SWE share price lately.

[zigzag]

Could be an interesting week for OEL shareholders. I am not going to speculate on the reasons behind the trading halt. What do I know? Only that OTTO rhymes with LOTTO!

[Corporate]

Fingers crossed this is a sale or farmout of SC55. However, the words Major Transaction may mean it is something completely left field. I hope they aren't selling the golden goose, galoc.

Well will know soon.

[zigzag]

Fingers crossed this is a sale or farmout of SC55. However, the words Major Transaction may mean it is something completely left field. I hope they aren't selling the golden goose, galoc.

Well will know soon.

Well, that was a major transaction. They have sold the golden goose, but we get some of the gold, Prior to the ann. I would not have favoured selling Galoc, but the way they've done it, makes it sound pretty good. I would call it a bold move as in they are going for it. Like I tell myself, OTTO rhymes with LOTTO. Interesting times ahead.

[gazprom1]

Hey zigzag

Bold move to say the least....SP reaction very muted. IMHO, should have sold a % and kept a %. Now they have no cashflow. 2 years and then they will need cash.

I voted with the sale of most of my shares. Retained some as we should see who the partner is for SC55 in the coming weeks.

Good luck to holders.

gaz

[gazprom1]

Hey zigzag

Bold move to say the least....SP reaction very muted. IMHO, should have sold a % and kept a %. Now they have no cashflow. 2 years and then they will need cash.

I voted with the sale of most of my shares. Retained some as we should see who the partner is for SC55 in the coming weeks.

Good luck to holders.

gaz

[Corporate]

Gaz. Definitely a bold move but the more I think about it the more I like it.

Galoc is a very mature asset and without additional drilling and discovery it is in its twilight years. Recent presentation have stated production out to 2020, but the rate will be a steep decline from here and the NPV of the 2017+ cash flows would be small especially taking into account decommission etc.

There was also comments around more infil drilling which have cost and risk associated.

Our CFO is a numbers guy and I expect they have spent a lot of time valuing the cash flows and risks to come to this decision.

Also the market wasn't valuing galoc fully. Now we have a negative EV with EARs and sc55 - I especially like the positive talk about 2 potential partners.

Apologies for the fragmented message. Punching thoughts via my phone on a bus in Europe.

The other thing is that any drilling success at galoc is only going to add incremental value. Not multiples which I am after.