OEL - (Otto) Multi based, Gambling Stock.

[shasta]

ps i trust you manage to sort your ASB issue out. nothing too serious i hope.

It's serious enough to stuff me financially, but we'll see.

I did re-buy into OEL again @ around 7c from memory & may have sold out at a small loss (can't remember)

[shasta]

i forgot to mention that two directors have been made purchases recently, too. always a good sign. moreover, i've just seen it jump to .073 - hopefully the start of things to come...

-j

OEL up 0.6 to 7.9c in early trading.

Can it breach 8c & hold it?

Something in the wind

[boysy]

its starting to look the goods all we need is some sort of announcement it is still seriously undervalued at these levels.

[boysy]

looks as though things are really moving along at galoc with this release this could explain the sp action

aloc Production Corp. (GPC) is preparing to start the second phase of drilling at its Service Contract (SC) 14 area in Northwest Palawan, a top consortium official said.

Paul Moore, president of Otto Energy Ltd., said the second part of the drilling program will start anytime soon and will enable them to increase the recoverable reserves from the area by five million barrels.

GPC, which owns a 58.29 percent in the SC 14 consortium, is composed of the Vitol Group (68.6 percent), an international oil company, and Australian firm Otto Energy (31.4 percent).

Other participating stakeholders in the SC 14 consortium are Nido Petroleum with 22.8 percent; Oriental Petroleum and Minerals Corp., 7.57 percent; The Philodrill Corp., 7.03 percent, UK firm Forum Energy Philippines Corp., 2.27 percent; Alcorn Gold Resources Corp., 1.53 percent; and PetroEnergy Resources Corp., 1.03 percent.

Moore said the target for Galoc is to “increase 2P reserves by five million barrels and access Galoc contingent resources.”

He said  two wells will likely be drilled and production for each is expected at around 4,000 barrels per day. Current production at the Galoc field is around 11,500 barrels per day.

The Galoc field is estimated to contain 10 million barrels of recoverable oil reserves.

Singapore’s Gaffney and Cline Associates, however, estimated the Galoc field   could contain up to 49 million barrels of oil reserves.

In October 2008, the Galoc field started producing oil and has produced and sold over three million barrels of oil to date.

Moore said preparations for the second phase of development includes “seismic interpretation, well positioning, drilling costs and schedule and tie-back preparations.”

[boysy]

The funny thing is though in recent presentations and releases from oel and ndo no mention was made of fast tracking galoc phase 2 you wonder what has made them change their minds. perhaps ndo has come up with there own reserve estimates and sees sense in developing galoc further on this info. As we have not had an official reserve upgrade either though at the time galoc was first producing they did mention it was exceeding expectations could be an interesting week ahead ?

[jdg]

cheers for the info, boysy. a release to the media but not to the market? i wonder if we will hear anything officially today? it's had a strong run in the last couple of trading days, can it continue its march upward?

very sorry to hear that you're problems are serious, shasta, you seem to know as much as anyone about OEL so i hope we can maintain your interest.

i'm no TA expert - far from it, in fact - but i'd say that the chart is now looking pretty solid with a break out on good volumes.

-j

[boysy]

looks as though some information about galoc performance will have to be released soon. NDO was the one who initiated a independent reserve study so that should hopefully yield more certified reserves. For a company producing 2000 odd barrels and a market cap of 70-80 odd million something has to give. Hopefully the payments have picked up along with the oil prices in that case the quarterly could help propel the sp along a bit further. This one is still under the radar of many people though i think the wealth destruction of last year will linger on until oel can get more than one project going bring on calauit and the farm outs this year as well as turkey news any day now one hopes.

[jdg]

agreed, boysy, we are potentially waiting on several important bits of news. reserves upgrade (and recent production figures) at galoc. gas starting up at turkey. and the chance of jv announcements as well (certainly conditions have improved, which they were waiting for). i had a wee look for information regarding calauit. we hold 85 percent of it, but what are we looking at here. oil was discovered in the early 90s, but were then any estimations of size or were flow rates tested? heaps on the horizon, if all goes well, and god knows OEL deserves a run of good luck (although 7 from 7 in Turkey is pretty charmed, let's hope start up is smooth and on time).

-j

ps. are there any TA exponents having a look? i'd love to see commentary on the chart if anyone has the time and inclination.

[jdg]

just found the estimates of calcuit 10 to 70 million barrels (at p90 and p10 respectively). gee, that could be truly massive for OEL...MASSIVE. and we know oil is there...whoa. this looks better and better the more i look at it.

-j

[boysy]

yeah calauit is a big driven short term. It has flowed at 7000 barrels and 3000 barrels at the two tested wells i believe off the top of my head . It will cost money get the oil out of the ground hence the need for a farm out but there mid case scenario is for around 12000 bopd so if we farm out 35% then thats still around 7000 barrels net to otto. Yep interesting times ahead but add into that sc 55 which is elephant country and that could really get things going though i would like to see the oil deposits found (sc 50 ie calauit) developed so oel is not simply at the speculative end of the oiler spectrum.