OEL - (Otto) Multi based, Gambling Stock.

[boysy]

why is sc50 sub commercial ? they have flow rates that suggest it commercial the only question is how much oil is in the ground and the fact development will cost money which oel do not currently have hence the need for a farm out

[boysy]

The Calauit Oil Fields are contained in fractured carbonate reservoirs in 80 to 100 m water depth in
Northwest Palawan, Philippines. The two discovery wells, Calauit-1 and Calauit-South-1, tested two
separate Oligocene carbonate structures at approximately 1600 mSS that flowed up to 7,000 and
3,286 barrels of oil per day. The main accumulation has estimated 10 (P90) to 70 (P10) million
barrels of oil in place.
Oil is reservoired in structural anticlines with a dominant fracture direction of 150/330 degrees and a
subordinate (conjugate) set at 20/200 degrees. Fractures in the Calauit Limestone reservoir provide
conduits of very high permeability, as supported by well tests.
Fracture swarms on seismic may indicate areas of much greater fracturing leading to higher rates
and recovery.

[shasta]

why is sc50 sub commercial ? they have flow rates that suggest it commercial the only question is how much oil is in the ground and the fact development will cost money which oel do not currently have hence the need for a farm out

Exactly, Misc if you're going to post on OEL, at least get your facts right.

Calauit (SC50) was put on hold for the follwing reasons:

1. Galoc production problems, caused cashflow issues with GPC's debt, which meant OEL weren't receiving there monthly "dividend" cheques.

2. OEL didn't have the cash to bring this into production itself, so it was delayed whilst Galoc was sorted & brought online.

3. OEL's high equity in SC50 @ 85% left OEL exposed (if there were any problems like Galoc), & management wanted to farm out some of the risk/costs.

4. OEL already had Galoc & Edirne on the go, plus Gazzatta (Italy) & Santa Rosa (Argentina) on the horizon & had too much going on, thus the decison to defer Calauit.

[boysy]

clearlu oel has left a bad taste in the mouth for many past and present shareholders but facts cannot be ignored and the company has changed course directed by new talent and already delivering on promises. They want to sharpen there geographic focus with turkey and the pines and farm down to create shareholder value. Clearly everyone should do there own research and not be sucked in by either optimists or pesimist let the facts speak for themselves. It looks as though oel have the ducks lined up it is now with them as to whether they can follow through.

[Misc]

Yes sub commercial by anyones assessment. Thus has not attracted any farminees or been developed by OEL despite being marketed and spruiked since 2005! There are better plays in the Philippines. This is overvalued for now imo. M

[boysy]

sub commercial by anyones assesment ? oil is subcommercial untill the field is produced and the actual results are known when the oil was found it was sub commercial at those prices things have changed substantially. It is a producer around 2000 bopd net ontop of this gas about to start up plenty of exploration upside market cap of under 100 million. why is it overvalued in your opinion ?

[Misc]

Boysy. Exploration 'assets' are liabilities .... until someone (with $$) farms in. All the potential in the world doesnt pay the rent. Otto has a share of a declining Galoc field and a few farts of gas in Turkey. $100m cap is not justified at this point.

SC50. I have worked in the area and believe me Caluit is as technically challenged as anything I have ever been involved with. Why do you believe it has not been developed when Nido/Tindalo have?? The monsters lie in the Coron play SC54 and the South Sulu sea (as Exxon have found) and possibly SC55 but yikers thats a wild bit of permit. M

[boysy]

im guessing you are a fan of nido petroleum then the tinaldo field is no more developed that calauit is what is your point there ? 100 % hit rate in turkey so far sure they are not big finds but they are bankable and will generate revenue on top of galoc. i am interested to see if you think nido is overpriced based on fundamentals alone ?

[jdg]

OEL gets a mention in this article, with speculation that it has the potential to be a 150% plus stock this year.

many members of this forum will be interested to see BOW also gets a positive rap too, along with a few other stocks followed on this site.

quite a good read generally, if you're interested in resources.

http://thebull.com.au/articles_detail.php?id=8745

-j

[Misc]

Boysy , I think you will find that Caluit (SC50) was targeted for development (read spruiked) even before a rejuvenated Nido tackled the Galoc redev. Since then Tindalo has been tested. Why not Caluit? Its not a goer I can assure you. Todays SP action was as expected but certainly am keeping an eye on OEL as new management appears to be cut from different cloth than previous. The Philippine is HOT in the sector now with Majors dancing to minors tunes in many cases , watch for more Farmin and drillbit action this year. You just need to back the right horse imo. Cheers