OEL - (Otto) Multi based, Gambling Stock.

[boysy]

Yep great about first gas wont show up in this quarterly though they will have to mention how things have progressed to date. Galoc should of had a ripper performance high poo and higher production hopefully so we should have high reciepts from gpc. Then there is bhp wouldnt be supprised if they have paid a portion of siesmic costs stright to otto so the cash balance hopefully looks a bit better than last quarterly. SC 51 farm out would be great news though they wouldnt wait for the quarterly to announce such a sensitive piece of info hopefully the terms are decent for otto . no mention yet of cost of processing gas it would have to be some percentage of gas price recieved dont you think ? i wonder if otto could now buyinto the plant if they wised to do so as there cadh position is looking alot healther as it would cost around US$3.5 million (35% of 10 mill plant cost). Some news on galoc and possible furthrdevelopment would also be good and perhaps a bit more insight if the plant will be increased to handle the extra gas found since the building began at the plant. Some updates on the last few turkish wells should be due anytime now as well. And yet the sp stagnates around 10.5 looks like another good buying opportunity it doesnt look like much premieum has been built in relating to bhp farm in as it should be worth around 20-25 million in back costs alone then theres the free carry on 1 or 2 drills. Now that could put a rocket under the sp

[jdg]

yeah, i presume that the cost would be a percentage of gas produced. no idea what that may be. if the plant is to be expanded on further discoveries - and there has to be a good chance that will occur - what will OEL do? pay for their share, or maintain the current agreement? who knows. it would be pretty straight forward to work out what is best with all of the relevant numbers, and almost certainly that would be investing in the plant, but how much are OEL going to have to shell out for SC51...? if they have some thoughts of going it alone, then that will take up every last cent they have (and probably then some). where is a company in shining armour ready to free carry us through that one...?

-j

[boysy]

yes very interesting i posted an article on hc about the cost of drilling sc 51 aparently is round US$36 million

http://business.inquirer.net/money/t...-offshore-Cebu

The pont about turkey is very interesting though they designed the gas plant with 8 discoveries in mind though i belive they have drilled around 13-14 wells to date all hiting gas though im not sure all have been flow tested. they made not in the last few anns that if yolboyu came in they would have to increase the gas handling capacity of the plant through additional building infrastructure they have been pritty coy about the results from yolboyu but it seems as though they hit gas though it may be sub commercial we shal find out in due course clearly. i would think now they have a better cash flow position they could easily contribute to payment for the plant from here on out though whether they will be able to do so is a different story. Hopefully the quarterly will give us a better understanding of what the company is plannig to do on all fronts.

[boysy]

a very interesting read from transatlantic the operator of otto turkish asset

http://www.transatlanticpetroleum.co...April_2010.pdf

Things certainly look to be going very wel in turkey 20 wells to be drilled this year and 20 next year.
18 leads mapped that are shallow plays with 3d over all of them
page 11-14 on thrace in particular though page 12 and 13 give a clear indication of what is planned next.
each well pays for itself within 2-6 months

[jdg]

a very good quarterly, and it's great to see the cash position continuing to advance.
the only thing that struck me as a little strange was the fact that the BHP farm-in option agreement was not mentioned even in passing (at least on my first quick reading).

-j

[boysy]

very solid quarterly indded. I think the fact that bhp pouring 20 odd million into siesmic must say it all really. Actions are louder than words at this stage good to see yolboyu-1 not written off either they confirmed they did in fact find gas the next question is it commercial ?

[jdg]

is that the $16.5m held in escrow? i would still have liked to hear something about BHP, even if it reminds investors what is potentially around the corner.
certainly good that yolboyu is still a possible starter. and we should hear what lies beneath somurcali shortly, given it was spudded march 27.

-j

[boysy]

yes held in escrow i guess they dont want arepeat of last time bhp came sniffing and the then ceo siad effectively it was a done deal then the deal fell through. Perhaps otto want to put an empasis on what they can control ie production and bringing online discoveries. The whole bhp situation is the elephant in the corner of the room. We all know how much a farm in would be worth to otto and how much back costs ect we would get back ( around 30 mill is my rough guess) then apply that to the current sp. If BHP do farm in and drill 2 wells i wouldnt be supprised to see the sp at many multiples of the current sp. Good to hear other parties are sniffing around there assets as well though we need to get some pen to paper before this one takes off. The buy side is looking very sad at the moment strange to see really when the prospects of the company are the brightest they have been in some time and they have the cash available to act on any discoveries. Very strange indeed though not a good day to release a quarterly one must say.

[shasta]

yes held in escrow i guess they dont want arepeat of last time bhp came sniffing and the then ceo siad effectively it was a done deal then the deal fell through. Perhaps otto want to put an empasis on what they can control ie production and bringing online discoveries. The whole bhp situation is the elephant in the corner of the room. We all know how much a farm in would be worth to otto and how much back costs ect we would get back ( around 30 mill is my rough guess) then apply that to the current sp. If BHP do farm in and drill 2 wells i wouldnt be supprised to see the sp at many multiples of the current sp. Good to hear other parties are sniffing around there assets as well though we need to get some pen to paper before this one takes off. The buy side is looking very sad at the moment strange to see really when the prospects of the company are the brightest they have been in some time and they have the cash available to act on any discoveries. Very strange indeed though not a good day to release a quarterly one must say.

OEL Quarterly

http://www.stocknessmonster.com/news...E=ASX&N=487631

Quarterly oil production was 767,315 bbls

Daily Production = 767,315/90 = ~8,500/bopd / 83% uptime = ~10,000/bopd

So Galoc is still producing at a decent rate with OEL's share roughly ~1,900/bopd

[boysy]

thoughts about the quarterly there shasta ?