OEL - (Otto) Multi based, Gambling Stock.

[ronthepom]

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

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]

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

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

[tricha]

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

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 4

th 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]

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/2008040...p2f340flnx.pdf

[tricha]

©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

P

erth-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 companies

able Nominees 3.57%

at a glance

otto energy

46

april 2008 |RESOURCESTOCKS

Source: Iress

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

[tricha]

[shasta]

Toasting marshmellows?

Some nice volume this week for OEL.

[tricha]

Toasting marshmellows?

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]

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]

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