OEL - (Otto) Multi based, Gambling Stock.

[boysy]

a drop in the bucket A$13k in the schemes of thing but management is on the ball and matt does reply to emails

[Rabbi]

I don't know what to make of OEL trading pattern but someone sure wanted a few toward the end of the day. 1,400, 000 at 10 cents and buyer still sitting there.
Nothing new in the wind but some people must be betting a farmin to SC 55 is a sure thing. The seismic might be very promising but I didn't note there were any DHI's, so there is still significant risk to any drill.
You would think with the company taking a softly softly conservative approach the SP might get stuck at say 9.5 -9.6 but it seems it's buy the rumour, until any news.

[boysy]

rabbi management seem to think they are on the goods - Hawkeye has been significantly de risked with evidence of multiple direct HC indicators page one of the presentation below

http://www.ottoenergy.com/IRM/Compan...20Presentation

Quarterly i hear should be out some time this week. Should state progress on sc 55 and intentions surrounding sc 69 seismic shoot ect. Otto still waiting for the call from Houston as to whether they are interested or not but behind the scenes the guys really like the seismic they are looking over one has to hope bhp own interpretation is going so well. otto seem to be in a position that they will drill the target either way so i guess it comes down to is bhp willing to commit or potentially lose out on a huge oil find if they hit hc'S. Money on hand keeps rising will be interesting to see how much leverage this will give them if the seismic over sc 69 looks the goods.

[shasta]

rabbi management seem to think they are on the goods - Hawkeye has been significantly de risked with evidence of multiple direct HC indicators page one of the presentation below

http://www.ottoenergy.com/IRM/Compan...20Presentation

Quarterly i hear should be out some time this week. Should state progress on sc 55 and intentions surrounding sc 69 seismic shoot ect. Otto still waiting for the call from Houston as to whether they are interested or not but behind the scenes the guys really like the seismic they are looking over one has to hope bhp own interpretation is going so well. otto seem to be in a position that they will drill the target either way so i guess it comes down to is bhp willing to commit or potentially lose out on a huge oil find if they hit hc'S. Money on hand keeps rising will be interesting to see how much leverage this will give them if the seismic over sc 69 looks the goods.

Im hoping that Paul Moore outlines what the company's intentions are on spending the cash, clearly SC55 is foremost in there thinking, but i'd like to know how much the minimum work in commitments will cost to retain all the other permits, & what will be given priority. The market is awaiting news of Galoc phase 2, i wonder if NDO's problems with Tindalo is having an effect, ie putting this on the backburner? (Vitol, GPC's main shareholder along with OEL, are well funded so they wont be holding things up)

This quarter will see the Edrine funds included in the cashflow, am looking forward to digesting the quarterly

[boysy]

From my understanding Shasta Galoc phase #2 is on the back burner they are doing a very through as they don't want any stuff ups. I didn't know that 80% of Galoc production is from 1 well alone they want to have the best possible plan before spending so much. Drill respond in sc 55 I believe is mid 2012 and planned seismic in sc69 will cover the current phase so no more spending required to next year. Sc 50 will in all likelyhood be dropped at cost or given away for next to nothing. I think a fair amount of reading between the lines has to occur Shasta as management let results do the talking. Good to see the narrow focus they just have to pull off getting Bhp on board now lol

[boysy]

big volume coming thorough already 3.5 million shares traded hands much more than usual you have to wonder how far we are from hearing some big news on otto.

[boysy]

volume up to over 5m and sp up 10% to 11 cents hasnt been this high for quite some time quarterly due monday perhaps some good news creeping out early.

[boysy]

http://www.oilbarrel.com/nc/news/dis...e-big-one.html

Otto Energy – Production And Farm-Outs Funding Exploration For The Big One


Catching Otto Energy’s CFO Matthew Allen in the middle of writing a director’s presentation was not the best piece of timing imaginable, but at least ensured that all things Otto were at the forefront of his mind. The Australian oil and gas company has recently divested the Turkish assets that brought the company into existence, but being a single permit play and having drilled all the seismic anomalies, there was little opportunity to grow and it was the right time to exit. This brings the focus back to Otto’s remaining assets in the Philippines where production and farm-outs are contributing significant dollars to exploration and development.
Otto holds 5 service contracts (SC) in 2 basins – SC14C, SC50 and SC55 in the Palawan basin; and SC51 North / South and SC69 in the Visayan basin. Beginning with SC14C, which after the divestment in Turkey is the company’s only productive asset, Otto owns an 18.78 per cent interest in the offshore asset that is currently producing (Galoc) in the region of 8,000 bopd gross (1,500 bopd net). Production was interrupted for one month in October by typhoon Megi, but the operating partners made good use of the down time to perform maintenance on the floating production, storage and offloading unit. The SC14C field is in decline having peaked at 17,000 bopd gross, but a second phase infill exploration and development programme is planned for 2012 with the aim of discovering new resources and/or recovering more of the existing 120-140 mmbbl resource, where recoveries have been in the region of 8 per cent .

SC55 is the potential game changer for Otto who owns 85% of the field. The prospect has a number of large targets, the largest of which, Hawkeye, is estimated to have mean prospective STOIIP of 680 mmbbl, a P90-P10 range of 87 – 1,539 mmbbls and a P50 estimate of 484 mmbbl. At the beginning of 2010 Otto negotiated a farm-in option with BHP-Billiton in exchange for BHP funding and processing the majority of a 2,400 square kilometre 3D seismic exploration programme. BHP has exclusive rights to review the data, and with 600 square kilometres interpreted to date, there remains much still to review. Should BHP exercise its option, the mining giant would then be required to fund the drilling of 2 deepwater exploration wells and reimburse Otto for its past costs in exchange for a 60% interest and operatorship of the block. All going to plan, Otto foresees the first deepwater exploration well being drilled by August 2012.

In the Visayan basin, Otto recently farmed out part of its interest in the SC51 block to SWAN Oil and Gas Ltd in exchange for the contribution of US$1.5 million towards the drilling of the Duhat-1 well. Having split SC51 into a North and a South block, SWAN is effectively getting Otto’s entire 80 per cent interest in the Southern block (offshore), while Otto will retain its remaining 40 per cent interest and operatorship in the Northern (onshore) block. Duhat-1 will spud in the Northern block, with drilling to commence in March, take 27 days to complete and reach a target depth of 1,000 metres. At a cost of US$2.5-$3 million the well is targeting a P50 estimate of 76 mmbbls of oil initially in place, with 1 mmbbl of recoverable oil estimated as providing an economic discovery.

Finally to SC69 where a seismic vessel is currently being contracted to shoot a modest 150 square kilometres of 3D seismic in June. The Lampos and Lampos South prospects are the major targets here with combined mean prospective resources of 292 mmbbls (STOIIP).

Having listed on the ASX in 2004 and expanded its portfolio from Turkey into the Philippines, Otto is now making a concerted effort to narrow its focus to those targets most likely to provide the best return on capital. Divesting Turkey and the Southern block of SC51 are the recent examples of this strategy, while farm out agreements with BHP-Billiton and SWAN provide important funding for exploration and development, which is supplemented by production at Galoc.

Adding to its position of financial strength is the US$30 million in the bank and absence of debt. With US$13 million in costs expected during the next 12 months (3D seismic at SC69, drilling of SC51 and general overheads) Otto is adequately covered for the foreseeable future. There is no doubting that Otto is an exploration company at heart, but production from SC14C is easing the requirement of external funding while the company searches for the big discovery that will provide real value to shareholders.

[Rabbi]

volume up to over 5m and sp up 10% to 11 cents hasnt been this high for quite some time quarterly due monday perhaps some good news creeping out early.

A lot of volume just for news creeping out Boysy and if there is any more upside today the Co. might get a please explain letter.

It could be just part of a general re-rating, at least this is what I prefer to believe. I don't think traders would pile in at this level, unless they had "inside" information.

[boysy]

i keep on coming back to the fact it went to 12 cents a year ago based on bhp farm in option alone one would think it could reach or breach 20 cents if bhp do decide to farm in. Certainly has been flying under the radar will be interesting if these spikes in volume continue into trade tommorow. Over 9 mill volume and sp staying at 11 seems to plenty of interest sitting at 10.5 cents this cant be in anticipation of the quarterly on monday you have to wonder if something else is underway.