OEL - (Otto) Multi based, Gambling Stock.

[boysy]

The only drawback i see is the fact that massive sh wealth was destroyed last year so im sure there will be a few doubters out there but they are delivering on many fronts im still accumulating at these bargin basement prices.

[jdg]

thanks so much for the response, AA.

does the recent spike, with increased volumes, not constitute a breakout? i would have thought a move above .072 may have constituted one...but my TA leaves more than a little to be desired.

FA is more where i'm at and, as Boysy points out, there's a whole lot of blue sky on offer - and a base of solid ongoing earnings. the market just needs to renew it's confidence in the stock; and that should go a long way to happening if the horror run at galoc ends (and logic suggests it must) and gas is added from turkey this quarter.

-j

[Corporate]

FA is more where i'm at and, as Boysy points out, there's a whole lot of blue sky on offer - and a base of solid ongoing earnings. the market just needs to renew it's confidence in the stock; and that should go a long way to happening if the horror run at galoc ends (and logic suggests it must) and gas is added from turkey this quarter.

-j

Agree with what you say jdg. What sort of revenue are OEL looking at for turkey gas?

[Rabbi]

OEL, like a lot of other juniors, survived the credit crunch with a massive share issue.
Now has well over one billion shares on issue.
They have reasonable cash flow now but they need a JV partner in the Philippines.
Not a dog to take wings and fly anytime soon.

Disc: Hold OEL

[shasta]

Agree with what you say jdg. What sort of revenue are OEL looking at for turkey gas?

Otto have quoted flow rates of 10-14mmscf/d @ between $US7.00-8.00

Lets take the mid point 12mmscf/d x $US7.50 = $US90,000 per day (~$A100k per day revenue).

OEL has a 35% interest in Edirne, so roughly $A35k per day gas revenue

There presentation has estimated gas production for 2010 @ 0.23mmboe

It's a bit of icing on the Galoc cake

[Corporate]

Otto have quoted flow rates of 10-14mmscf/d @ between $US7.00-8.00

Lets take the mid point 12mmscf/d x $US7.50 = $US90,000 per day (~$A100k per day revenue).

There presentation has estimated gas production for 2010 @ 0.23mmboe

It's a bit of icing on the Galoc cake

Thanks Shasta - are these figures right? Thats $A30m PA (with 65 down days)....not just icing!!

[Corporate]

Thanks Shasta - are these figures right? Thats $A30m PA (with 65 down days)....not just icing!!

aah! Just looked at the presentation - 35% working interest.

Still circa. $10m PA is nice.

[shasta]

Thanks Shasta - are these figures right? Thats $A30m PA (with 65 down days)....not just icing!!

I edited my post - OEL has a 35% interest, the numbers i quoted were the total figures.

For 2010 revenue i'd assume 9 months production, being conservative

[boysy]

clearly the massive shareholder destruction of wealth last year will continue to be an issue for oel. They now have to prove the goods the new ceo looks like he has a good strategy of consolidating the focus of oel to the pines and turkey which he should. The question from here on out is how will the company develop we do not have the resources to go elephant hunting so one would hope they continue to develop what they have already found ie develop calauit, galoc phase 2, turkey phase 2 ect. Some of those deadlines for sc we have are fast approaching so it should be an interesting year as we have alot of time presure in certain service contracts particularly sc51 and then sc50. Hopefully the big boys make some more finds in the pines this cant hurt the chances of farming out sc55 and the like.

[jdg]

hi AA, thanks for the response. i saw last night that you had responded again but i didn't have time to reply (i was hoping to have a read of your links), but your posts seem to have gone...? anyway, i see resistance at .072 looking at the chart (mid august, late sept, mid oct). i'm picking if we hold above that, and then go past .079, the high of the recent spike, we can assume an uptrend. still, it may be all a bit academic if she drops below .072 - and with oil down overnight that wont help sentiment. but who knows, interest in OEL seems to be on the increase judging by volumes so i can only hope that a few people are picking up on the fundamentals and see the potential many of us here do. thanks again, i appreciate your expertise.

-j