OEL - (Otto) Multi based, Gambling Stock.

[Corporate]

BHP hold all the cards here and as I read it will not share the 3D with the company

I disagree. Otto are dong very well to snag a big fish like BHP. Super powers like BHP are like gold to small minors like OEL. THe annoucement states that OEL with acquire the 3D seismic and BHP will pay for it. OEL will hold the data and and let BHP review it exclusively (I.e. they just can't give it to someone else).

[boysy]

perhaps someone can post a chart and there thoughts and opinions then ?

[boysy]

misc - the facts are

The price went up over 20% today hardly a bad day at the office for holders pre announcement

share of back costs i would be suprised if it was anywhere near as low as 2 million

as for 1.2 billion shares on issue i think 1.07 billion would be closer to the mark

yes there are risks involved but as long as the risk return ratio balances itself out then enough said. This company is producing 2000 bopd net it has no debt it has great farm out prospects and fields waiting to be developed. I am a happy investor

a little bit of research before bagging sure this company has a chequered past the question is what is the new team doing.

[jdg]

this is worth a look

http://www.ottoenergy.com/IRM/Compan...=StockAnalysis Special Report - OEL

i feel pretty confident the current sp is well supported by what we currently have. this stock has just been ignored because of a really bad run of luck, and potentially poor management. the law of averages suggest the former must turn, and for the latter we have a new CEO.

cheers, AA, i hope you keep an interest. i'm always up for learning a little more of the way of the TA. i tried using the Force, but it's not as easy as it looks. did i read your post correctly that you're holding?

corporate, the reason i'm happy holding, and happy to buy more as funds allow, is i'm backing on the quarterly bringing us good production news. i'm also anticipating gas coming on line smoothly and on time. moreover, the blue sky via farm ins is potentially massive. but the thread title says 'gambling stock', and that's what i'm doing - don't take my advice as any more than that, mate.

there are others here (shasta and boysy for two) who know much more than i. i'm a new kid on the block who seems to have lucked in with my timing.

all-in-all it's been a great little ride so far. let's hope it continues.

-j

[Misc]

Well said AA.

I think that several posters here hold from 2008 levels , perhaps 50c+ , this stock has been a shocker and todays selling suggests plenty of holders screaming 'get me out'. This will touch 7c beofre 10c again I would suggest. The announcement today is really only fluff and far from any certainty to it adding value at all. M

[shasta]

this is worth a look

http://www.ottoenergy.com/IRM/Compan...=StockAnalysis Special Report - OEL

i feel pretty confident the current sp is well supported by what we currently have. this stock has just been ignored because of a really bad run of luck, and potentially poor management. the law of averages suggest the former must turn, and for the latter we have a new CEO.

cheers, AA, i hope you keep an interest. i'm always up for learning a little more of the way of the TA. i tried using the Force, but it's not as easy as it looks. did i read your post correctly that you're holding?

corporate, the reason i'm happy holding, and happy to buy more as funds allow, is i'm backing on the quarterly bringing us good production news. i'm also anticipating gas coming on line smoothly and on time. moreover, the blue sky via farm ins is potentially massive. but the thread title says 'gambling stock', and that's what i'm doing - don't take my advice as any more than that, mate.

there are others here (shasta and boysy for two) who know much more than i. i'm a new kid on the block who seems to have lucked in with my timing.

all-in-all it's been a great little ride so far. let's hope it continues.

-j

I think we can safely remove the "gambling" comment from Otto now.

OEL is now an oil producer @ around net ~2000bopd, with no debt, & is cashflow positive, receiving monthly "dividends" from GPC.

OEL & IPM had an 8/8 strike rate in Edirne in Turkey, & signed up to the Turkish gas grid getting prices Aussie companies would be envious of.

OEL also has SC50 containing the Calauit field which has a known oil discovery in it, & OEL owns *85% of it (maybe even *99% depending on the farm in terms).

This farm in from BHP for SC55 is for a deep water permit in "elephant country", this is not just a company maker, ANY discovery here will make OEL a multibagger, as there are some large potential targets in these permits.

These deep water wildcat drills are extremely expensive, & without a major to fund these, we would never be able to complete the minimum work conditions for receiving/keeping the permit.

NDO a while back came out & estimated a possible *11.6b OIP on there deep water permits, of course this is all pie in the sky stuff, until a resource is proven, but it highlights the potential.

* 11.6 Billion barrels Oil in Place

OEL has the same kind of potential on there deep water permits.

However these are not near term projects and are late 2011, or 2012 at the earliest.

I've already posted a rough guide to the gas revenue ex Edirne, & to my mind, OEL's next priority would be to get a farm in partner for SC50.

With oil prices still pretty strong, now is the time to start planning to extract it, instead of looking for giant fields among there deep water permits

[shasta]

Well said AA.

I think that several posters here hold from 2008 levels , perhaps 50c+ , this stock has been a shocker and todays selling suggests plenty of holders screaming 'get me out'. This will touch 7c beofre 10c again I would suggest. The announcement today is really only fluff and far from any certainty to it adding value at all. M

Thats a bit of a misguided sweeping statement!

I originally bought in at 32c & sold out at 48c

I bought back in around 7c & sold at a loss at something around 6c.

OEL's problems were well documented, & only those with a long term approach would have held through all there commissioning issues

[Misc]

Shasta , there is NO 'BHP Farm_in Agreement' (as you state). There is simply a Seismic Option. Big diff. All the cards are in BHPs hands and there will be no time left on the work program if they do not exercise the option to farm-in and drill. In many ways todays ann is a liability to OEL but demonstrates the 'backs to the wall' position they are in with all their permits. Nido are a far safer play. M

[Phaedrus]

I'm not sure what sort of chart you are wanting here, Boysy, but here is one from the point of view of a fairly active trader using an end-of day based system.

The Slow Stochastic Oscillator gave a Buy signal on 6/1/10 at Candle (1). Isolated signals like this are generally ignored, but they do constitute a "heads up".

The next day at Candle (2), Buy signals were generated by price trendline breaks, RSI oscillator and an OBV trendline break, giving a very well-confirmed entry at 7.3 cents. (The red trendline tracks Closes, the magenta trendline tracks highs.)

Candle (3) gapped up and was looking strong.

Candle (4) was essentially a "dark cloud cover" - a Bearish reversal signal. Active traders Exit at 7.7 cents.

Candles (5) and (6) continued the short-term downtrend.

Candle (7) marked a new uptrend, giving a new entry at 7.5 cents.

Candle (8) gapped up today on huge volume (over 82 million).

More active traders would not have waited for the Close at candle (2) before buying.

Less active traders would not have sold at candle (4) at the "dark Cloud Cover".

[shasta]

Shasta , there is NO 'BHP Farm_in Agreement' (as you state). There is simply a Seismic Option. Big diff. All the cards are in BHPs hands and there will be no time left on the work program if they do not exercise the option to farm-in and drill. In many ways todays ann is a liability to OEL but demonstrates the 'backs to the wall' position they are in with all their permits. Nido are a far safer play. M

It's hardly a liability, BHP are funding the minimum work required to retain the permit.

OEL will receive a reimbursement of costs to date (not much).

If you look at the bigger picture, BHP have already previously tried to tie up a deal with OEL, that lapsed, & the mere fact BHP still want to be involved can only be a positive thing, as today's trading highlights.

Have you been burnt by OEL in the past?

Nido said they had 11.6 billion barrels, when are they getting that out?