OEL - (Otto) Multi based, Gambling Stock.

**shasta** · 19-04-2010, 02:48 PM

Originally Posted by boysy

thoughts about the quarterly there shasta ?

I was pleased with the Quarterly, Galoc ticking along nicely, the Gas production now adding a 2nd revenue stream to OEL.

Both Galoc - Phase 2, & the Edrine gas exploration programs provide future upside & increased revenue

The cashflow statement showed the $21m odd received from BHP whilst it's chicken feed to them, is a major coup for OEL, the fact that BHP didn't walk away & agreed to renegotiate tells me they are wanting to stick around in the Phillipines.

With BHP onboard for just 1 deep water permit (SC55), surely they will be looking at OEL's other permits nearby, should the 3D seismic data confirm the large prospects (Marantao & Hawkeye) from OEL's previous 2D seismic data.

**boysy** · 19-04-2010, 03:00 PM

yes i certainly took some good news away from the quarterly the market is thinking otherwise though. Looks as though turkey will be self funding from now and hopefully the other service contracts otto has equity in can get some decent farm out offers. I also think that the fact bhp are stumping up the money to oel out of all the service contracts has to speak volumes. At these prices there is little to no premieum built into the sp about a successful farm in which is looking more and more likely in my humble opinion. Otto certainly have been busy though the sp doesnt seem to be reflecting the good work they are doing and the results they are achieving.

**shasta** · 19-04-2010, 03:05 PM

Originally Posted by boysy

yes i certainly took some good news away from the quarterly the market is thinking otherwise though. Looks as though turkey will be self funding from now and hopefully the other service contracts otto has equity in can get some decent farm out offers. I also think that the fact bhp are stumping up the money to oel out of all the service contracts has to speak volumes. At these prices there is little to no premieum built into the sp about a successful farm in which is looking more and more likely in my humble opinion. Otto certainly have been busy though the sp doesnt seem to be reflecting the good work they are doing and the results they are achieving.

I thought we might have seen 11.5 - 12.0c from the market after the cashflow statement showed the BHP's cash is in the bank

Bad day to announce it i guess

**boysy** · 19-04-2010, 03:25 PM

yes the fact that bhp are fronting up with that sort of cash has to be a good sign even if it is peanuts in the grand picture. Interesting to note the top 20% holdings have crept up from 60% to 62 % one would have to think at this price the upside is huge and the downside is not that great. Will we get a valuation on oel perhaps if bhp farms in i mean 10.5 cents we have almost 2.5 in the bank in cash still plenty of oil in the ground at galoc and blue sky potential via SC 55 and the rest. Very interesting indeed i too though this good news would support a higher price than 10.5 but what can you do the market knows best right

**shasta** · 20-04-2010, 05:50 PM

Originally Posted by boysy

yes the fact that bhp are fronting up with that sort of cash has to be a good sign even if it is peanuts in the grand picture. Interesting to note the top 20% holdings have crept up from 60% to 62 % one would have to think at this price the upside is huge and the downside is not that great. Will we get a valuation on oel perhaps if bhp farms in i mean 10.5 cents we have almost 2.5 in the bank in cash still plenty of oil in the ground at galoc and blue sky potential via SC 55 and the rest. Very interesting indeed i too though this good news would support a higher price than 10.5 but what can you do the market knows best right

OEL - Presentation at the Excellence in Oil & Gas Conference (today in Sydney)

http://www.stocknessmonster.com/news...E=ASX&N=487908

Market Cap $118m
Net Cash/(Debt) $23m
EV = $95m

NB, SC55 which BHP are funding the seismic for, has 16 prospects/leads (as per presentation)

To look out for in the next quarterly:

1.Oil production = 90days x 10,000bopd = 900,000 x 80% uptime = est 720,000/bbls (approx 135,000 net OEL)
Assuming Brent @ $US70/bbl @ AUD/USD 0.90 = Gross revenue of ~$A9.5m to OEL

2. Gas production should be close to 100% online (lets say 90% uptime*, & a 10% processing fee)
Assuming 12mmscf/d @ $US7.50 x 80* days x 35% @ AUD/USD 0.90, less 10% = Gross revenue of ~$2.5m to OEL

3. Galoc - Phase 2 FID (For 1 or 2 wells)

Should be a good quarter for OEL, lets hope the weather stay fine & the uptime rates increase

**Crypto Crude** · 20-04-2010, 10:06 PM

Just sat down and hoped to look through the preso and market announcements, and boi...
Theres more to this stock than meets the eye...
steep admin costs though, and steep exploration costs for this quarter which will erase most of the money coming in...

Its true,
If you are building the growth of a company, you have to re-invest those funds back into the business...

OEL is building a future...
They are headed in the right direction......
nothing beats building an oiler on production revenues...
running through the motions....

good summary Shasta...
Are you buying?

.^sc

**shasta** · 20-04-2010, 10:47 PM

Originally Posted by Shrewd Crude

Just sat down and hoped to look through the preso and market announcements, and boi...
Theres more to this stock than meets the eye...
steep admin costs though, and steep exploration costs for this quarter which will erase most of the money coming in...

Its true,
If you are building the growth of a company, you have to re-invest those funds back into the business...

OEL is building a future...
They are headed in the right direction......
nothing beats building an oiler on production revenues...
running through the motions....

good summary Shasta...
Are you buying?

.^sc

Im not buying anything at the moment, still have the ongoing saga with ASB Sec - a/c frozen

I'm not working at the moment either, taking some time out to sort some health issues.

OEL would be my 2nd stock i'd be buying though...