OEL - (Otto) Multi based, Gambling Stock.

[jdg]

also, boysy, we will get the quarterly at the end of the month and that should give us a good update on how well oil is flowing at galoc - hopefully without disruption we've been quickly filling the coffers. a good sentiment builder, for sure. and not long after we should hear from turkey. a smallish earner, shasta, but pretty bloody good when OEL only has a market cap of $70m odd. moreover, there is almost certainly more there and we now have the facilities to quickly exploit any new discoveries.

-j

[boysy]

i think we should all watch out for the reserves upgrade i belive oel may have been a tad conservative in stating our reserves it could be a interesting reserves update when it sees the light of day.

[jdg]

BHP are back with a deal in SC55. Let's hope the seismic finds some great leads for a two drill bite at a very big cherry. no timeframes in the announcement, but having such a large partner is a brilliant thing. pleasing to see they have worked through their differences of a year ago. great news!

-j

[jdg]

being mindful of hype, from 2D data OEL say of one area within SC55:

"A deep water block with massive reef and turbidite reservoir potential with Direct Hydrocarbon Indicators, Marantao has prospective resources of 3.3 tcf gas or >1 billion bbls oil, with a number of further leads for follow up."

yip, chances of this type of strike occurring are slim, but the potential for a company transforming find are there. one can't help being a little excited by that. moreover, OEL have many such prospects in numerous acreage, let's hope the farm outs continue.

-j

[shasta]

being mindful of hype, from 2D data OEL say of one area within SC55:

"A deep water block with massive reef and turbidite reservoir potential with Direct Hydrocarbon Indicators, Marantao has prospective resources of 3.3 tcf gas or >1 billion bbls oil, with a number of further leads for follow up."

yip, chances of this type of strike occurring are slim, but the potential for a company transforming find are there. one can't help being a little excited by that. moreover, OEL have many such prospects in numerous acreage, let's hope the farm outs continue.

-j

I like the fact that even though the first attempt to secure a farm in with BHP lapsed, they have been able to renegotiate an agreement.

Yes, it's in deep water & in "elephant country", but OEL's committment & risk has been reduced.

Personally, i'd liked to have secured a partner for SC50 (Calauit) & get that fast tracked, before looking for massive deep water oil/gas fields.

With NDO having the largest direct interest in Galoc, & with there own deep water permits, between NDO & OEL they have a big area in the Phillipines covered.

The Galoc revenue would surely support the costs in getting Calauit up & running if these two were to do a deal.

OEL would likely farm down to around 50%, so NDO (or someone else, KIK?) could secure a 35% chunk of Calauit.

All pie in the sky stuff at this point, but worth noting.

KIK is also in the Phillipines with some tie with NDO.

[jdg]

hey shasta, it must be a bit bitter-sweet for you watching this from the sideline. i hope things are looking up for you, mate.

i agree with you in regards to Calauit, when we know oil is there surely it is better to pursue that than poke around in the dark. still, we don't know what's happening behind the Otto office doors. they may be negotiating something as we speak.

if it holds anything above 9c today, i will be happy. it certainly constitutes a break out now, AA.

-j

[boysy]

could be very interesting with past costs being reimbursed this could help fast track calauit this certainly is a good signal hopefully it will put oel on the radar of a few other players

[Corporate]

Well done Otto - things are turning. I really should have bought at 7c a week or so ago!

Thoughts on entering now?

[boysy]

you have to think if bhp farms in then oel will get alot of costs reimbursed to them wont they which they could put to good use in sc50 or Galoc phase 2 certainly is an interesting time ahead. No use getting ahead of ones self but hopefully oel will give us a bit of an update in the quarterly reguarding recently shot 3d over sc55 this could give us an indication of the prospects in the region. 1000km - 2000 km of 3d siesmic could bring forth many more targets now couldnt it. Seems as though the stars could be aligning themselves for oel lets just hope they can get other projects fast tracked now that we have a bit more coverage and perhaps a few new valuations could go along nicely

[Misc]

This is a great deal ... for BHP! I would not buy now. Obviously 80m shares were happily dumped and the price finished well below its high leaving alot of punters in the red.

BHP hold all the cards here and as I read it will not share the 3D with the company , rather they will use it to renegotiate , walk or farmin as agreed. Share of backcosts would be minimum , perhaps $2m?

To risky for mine . 1.2b shares on issue! Hope a few here took the chance to exit. M