OEL - (Otto) Multi based, Gambling Stock.

[boysy]

Very interesting isnt it shasta you have to view this as a positive otto must be rather confident of a farm out to go in and get more equity . Will be interesting to see if we get a result from sc 55 one has to think thats otto could give bhp a bigger portion of equity if needed you have to wonder if this is a bit of sign for bhp to hurry things along.

[Rabbi]

Otto now seems to have a very narrow focus after having divested the assets in Turkey.
I read somewhere, maybe HC forum, that their admin costs were quite low for the last quarter. They certainly have built up their cash nicely but I wonder now if they don't have all their eggs in one basket, ie SC55.

Even if they get a partner to drill Hawkeye, they still have to find hydrocarbons, although they will be free carried. However if drill is not commercial success where to from there, and if it is successful it will need to be big to warrant development cost.

A lot of variables in the equation.

[boysy]

At the end of the day these small oiler have to make discoveries to become major players. I guess the big thing is getting funding or a farmout partner to be able to drill the high impact wells. One would think ottos admin costs should fall last quarter was much higher than usual at $2.5m for the quarter but this is expected to drop to $1.8m in the current quarter. Dont forget about sc 69 rabbi i would say this looks possibly more exciting than sc 55 but is clearly in a very early stage with 3d being shot mid year round year end they should have some drillable targets. Good to hear also that other targets are shaping up in sc 55 the company clearly sees sc 55 getting drilled at some stage with the recent release lets just hope bhp are still keen and do indeed sign on the dotted line.

[shasta]

Otto now seems to have a very narrow focus after having divested the assets in Turkey.
I read somewhere, maybe HC forum, that their admin costs were quite low for the last quarter. They certainly have built up their cash nicely but I wonder now if they don't have all their eggs in one basket, ie SC55.

Even if they get a partner to drill Hawkeye, they still have to find hydrocarbons, although they will be free carried. However if drill is not commercial success where to from there, and if it is successful it will need to be big to warrant development cost.

A lot of variables in the equation.

I trust Paul Moore to put OEL in the best position to discover a commerial oil/gas find in the Phillipines.

I like the narrow focus, SC55 & SC69 are priorities, & adding to there interest tells me they know the chances of a find are quite good, remember they now have comprehensive data & if BHP is even considering it, there must be enough promise already, why would OEL increase there stake otherwise?

OEL has to show BHP they are serious about the permit, they have Galoc to pay the bills & fund exploration drills & theres always Galoc phase 2 lurking in the background should the BHP tie up not go ahead.

Farming down SC51 has effectively ensured the money we got for it, will fund a good chunk of our share to maintain the permit doing the minimum work required

OEL doesnt have the diverse projects around the world like BPT, & its exploration program for 2011 is rather quiet compared to others, but divesting & exiting Turkey, Italy & Argentina will reduce the admin/travel costs, we are now a Phillipines focussed O&G company

[boysy]

http://www.philstar.com/Article.aspx...bCategoryId=66

Trans-Asia, Otto Energy start seismic survey
By Donnabelle L. Gatdula (The Philippine Star) Updated February 12, 2011 12:00 AM Comments (0)

MANILA, Philippines - Trans-Asia Oil and Energy Development Corp. and Australia’s Otto Energy Ltd. have started survey works at a petroleum exploration block in Camotes Sea in Central Visayas.

In a report to the Philippine Stock Exchange (PSE), TA Oil said the 3D seismic survey would be conducted on at least 50 square meters in the area covered by Service Contract (SC) 69.

According to the report, they are set to undertake the seismic mapping of SC 69 from Feb. 11, 2011 to Aug. 7, 2012.

SC 69 covers an area of 7,040 square kilometers in offshore Central Visayas, surrounded by the islands of Cebu, Bohol and Leyte.

TA Oil currently controls a 30 percent of the contract while Otto Energy owns the balance.

Earlier, Otto Energy increased its equity in SC 69 to 79 percent from only nine percent in exchange for the payment of TA Oil’s previous costs and equity share in the drilling of an exploration well in the exploration block.

TA Oil, a subsidiary of the Phinma Group, is primarily into conventional fuel-based power generation, petroleum exploration and production, mining and retail electricity trading.

On the other hand, Otto Energy is an oil exploration and development firm based in Australia. It holds interests in a number of other exploration contracts in the Philippines.

[shasta]

http://www.philstar.com/Article.aspx...bCategoryId=66

Trans-Asia, Otto Energy start seismic survey
By Donnabelle L. Gatdula (The Philippine Star) Updated February 12, 2011 12:00 AM Comments (0)

MANILA, Philippines - Trans-Asia Oil and Energy Development Corp. and Australia’s Otto Energy Ltd. have started survey works at a petroleum exploration block in Camotes Sea in Central Visayas.

In a report to the Philippine Stock Exchange (PSE), TA Oil said the 3D seismic survey would be conducted on at least 50 square meters in the area covered by Service Contract (SC) 69.

According to the report, they are set to undertake the seismic mapping of SC 69 from Feb. 11, 2011 to Aug. 7, 2012.

SC 69 covers an area of 7,040 square kilometers in offshore Central Visayas, surrounded by the islands of Cebu, Bohol and Leyte.

TA Oil currently controls a 30 percent of the contract while Otto Energy owns the balance.

Earlier, Otto Energy increased its equity in SC 69 to 79 percent from only nine percent in exchange for the payment of TA Oil’s previous costs and equity share in the drilling of an exploration well in the exploration block.

TA Oil, a subsidiary of the Phinma Group, is primarily into conventional fuel-based power generation, petroleum exploration and production, mining and retail electricity trading.

On the other hand, Otto Energy is an oil exploration and development firm based in Australia. It holds interests in a number of other exploration contracts in the Philippines.

Nice find Boysy, wow thats a long time to do the seismic work, is that cos they will have to stop during Typhoon season?

[boysy]

The seismic will be done mid year with results before sept quarter they are planning as per the quarterly release. Things certainly look promising raising equity in sc 55 and 69 lets hope bhp come out with an answer soon either way. Upside clearly much better than downside the seismic is looking the goods i personally dont think bhp will walk away when especially if the other leads being interpreted are as good as hawkeye. One has to consider the huge upside if bhp do farm in wouldn't be surprised to see the sp in the 20-30 cent range. On the downside if bhp walks im guessing 7-8 cents the company seems confident someone will be interesting even if bhp are not. Interesting times ahead and the onshore drill is a wildcard that certainly would heat things up if the hit hc's though with a GPOS at 8% im not holding out hope.

[jdg]

hey guys,

has there been any guidance given by OEL as to when BHP may make a decision? given the drill doesn't have to occur until Aug 2012, it might still be a little way off? or have I missed a timetable or deadline?

i too am not backing on anything from onshore 51 , boysy (and i'm sure shasta is with us on that), but it will certainly give us something to watch in the near term. nothing like the thrill of the drill.

-j

[shasta]

hey guys,

has there been any guidance given by OEL as to when BHP may make a decision? given the drill doesn't have to occur until Aug 2012, it might still be a little way off? or have I missed a timetable or deadline?

i too am not backing on anything from onshore 51 , boysy (and i'm sure shasta is with us on that), but it will certainly give us something to watch in the near term. nothing like the thrill of the drill.

-j

SC51 looks to be drilled just to meet the minimum conditions, very unlikely they expect to find anything there, but for a small outlay its probably worth holding onto.

Misc was right when he/she said SC50 wouldnt be drilled, it was too technically difficult & OEL have now walked away from it.

I hope OEL has learnt from that experience, a couple of years ago it was going to add 12,000bopd to OEL's production, another reason Paul Moore seems to making the right moves & narrowing there focus

No rush for the BHP decision, longer it takes hopefully the more cash OEL has to prove they are serious about it, i'll take a wild stab & say we will find out during Q3 this year - this is purely a guess, i do not know anything more than you guys, looks to be a fairly quiet 2011 ahead

[Rabbi]

Yes, it's all ho hum but OEL has to be a "sleeper" and the time to buy is when investors lose patience and bail out. I agree Shasta, perhaps a delay in getting a partner to drill SC55 might not necessarily be a bad thing. In fact many juniors have been burnt by overly ambitious drilling campaigns eroding their cash in drill, thrill and burn style.

I'll keep mine in the bottom draw and wait patiently while the galoc cash keeps rolling in.