OEL - Otto Energy

[Wysiwyg]

I noticed they are still hoping to reach 15000-20000 bbls/d flow rate!That is something I won`t believe until I read it.Also the possibility of great things for OEL have been circulating for a while now.Yet to prove anything and still a risk though they do seem reasonably grounded in their approach.

 

[Captain Haddock]

Some more news today for OEL, seems pretty positive IMHO. Any production experts care to comment?

Otto Energy Limited (ASX:OEL) Resource Estimate - Edirne Gas Fields Western Turkey

Perth, Sept 23, 2008 (ABN Newswire) - Otto Energy Limited (ASX:OEL)(PINK:OTTEF) is pleased to advise that the Company has estimated the contingent resources at 8.5bcf (mid case), in the Edirne Licence, located in the Thrace Basin of Western Turkey.

The play concept and geological interpretations to date have resulted in six discoveries made in the six structures drilled. The as yet undrilled structures also have the potential for a further 15.7 bcf of gross prospective resources (mid case).

Otto's updated estimate on the volumetric Gas Initially In Place ("GIIP") ranges for the prospects are stated below with recoverable estimates based on a 70% recovery factor (RF). The resource estimates include the results from the recent drilling program completed in July 2008. Whilst robust, these figures are internally generated by Otto and have not yet been independently certified.

---------------------------------------------
Discovered Gas Contingent Resources
Initially In Place Recovery Factor (70%)
(GIIP)
---------------------------------------------
Low Case 5.3 bcf 3.7 bcf
Mid Case 12.2 bcf 8.5 bcf
High Case 20.4 bcf 14.3 bcf
---------------------------------------------

---------------------------------------------
Prospective GIIP Prospective Resources
(undiscovered) Recovery Factor (70%)
---------------------------------------------
Low Case 7.4 bcf 5.2 bcf
Mid Case 22.4 bcf 15.7 bcf
High Case 58.5 bcf 41.0 bcf
---------------------------------------------

The main reservoir target in the Edirne Licence is at depths of between 250 and 500 metres, with the hydrocarbon accumulations being modest in size, but with proven multiple pay zones.

All six discoveries on the licence are in close proximity to each other and there are also a number of to yet-to-be drilled leads and prospects on the block with amplitude anomalies. Such proximity will allow cost-effective multiple-pool development of the field quickly and at relatively low-cost.

All four gas discoveries drilled in the 2008 drilling campaign encountered substantially greater net gas pay than the pre-drill estimate, with three of the wells testing at rates of between 1.93 and 3.8 mscf/d (one well was not tested at this time as it will not be part of the initial development; it will be tested in the next drilling program). These are excellent flow rates given the shallow pools and hence low reservoir pressures.

The project is proceeding rapidly to commercialisation with Front End Engineering and Design (FEED) study underway. First gas sales are expected mid-2009. Based on production rates of 8-10MMscf/d, it is estimated the cash flow stream net to Otto will be approximately US$5-10 million per year once on production.

Otto CEO Alex Parks said, "The gross resource estimates of 24.2 Bcf (mean case), gives us confidence that we have a commercial gas project capable of development. With Turkey's robust domestic gas price of over US$14.00 per thousand cubic feet, this development should prove very profitable and we look forward to it being Otto's second producing asset commencing approximately mid 2009. "

The partners in the Edirne Gas Project are Otto Energy (35%) and Joint Operators Incremental Petroleum (55%), and Turkish partner Petraco (10%).

 

[sinner]

OEL has been awesome the last week, consistently ignoring the market and performing in the green regardless of bad international news or fluctuating resource prices, etc.

Once again, looking at my oil watchlist all stocks are red except OEL.

Any comments?

 

[oldblue]

OEL has been awesome the last week, consistently ignoring the market and performing in the green regardless of bad international news or fluctuating resource prices, etc.

Once again, looking at my oil watchlist all stocks are red except OEL.

Any comments?

Well, all mine are red except BRU and CUE but then the oilers don't have it on their own, it's very hard to find much else that's green today in either my portfolio or watchlist!

 

[Junior]

OEL has been awesome the last week, consistently ignoring the market and performing in the green regardless of bad international news or fluctuating resource prices, etc.

Once again, looking at my oil watchlist all stocks are red except OEL.

Any comments?

Well...good that it's in the green, but it's still down 50% from it's high 6 months ago. So it's nothing to be particularly stoked about.

 

[sinner]

My condolences oldblue, despite some intra-day reds (mostly due to profit-taking selloffs imo), my portfolio is consistently finishing in the green for the last 2 weeks!

I will happily disclose holdings in IGR, OEL and ORG. Although I will probably drop out of ORG shortly due to stochastic readings.

EDIT: Double condolences Junior, but some of us have been waiting on the sidelines a lot longer than 6 months for these lows to buy in!

 

[arguls]

Whats up? Tanking. Heavy sellof. Its really hard time for OEL. And that will be year 2009 because of dropping oilprices to 30 USD.

 

[Wysiwyg]

Whats up? Tanking. Heavy sellof. Its really hard time for OEL. And that will be year 2009 because of dropping oilprices to 30 USD.

Notice Galoc production has ceased mometarily due to inclement weather.Some debt still to pay off and low low bbl prices.They have a pipeline of projects with the Turkey gas a goer so they should survive.

 

[Wysiwyg]

A feather in the cap for OEL after striking up a farm-in deal with BHP ...

Highlights:

• BHP Billiton will earn a 60% interest in SC55 by carrying Otto through a 3D seismic programme and two deep water exploration wells
• Otto will retain a carried working interest of 25% in SC55 and will transfer
operatorship to BHP Billiton

But, alas poor yorick, tis not till 2010 ...

We anticipate that the 3D seismic survey will be carried out and interpreted in 2009 with drilling to follow in 2010.

 

[Junior]

Another capital raising!

I thought they were cashed up AND have an ongoing revenue stream from Galoc.

Is this part of a grand plan to emerge stronger when the oil price recovers? Or are they raising cash to ensure survival?

 

[Captain Haddock]

Another capital raising!

I thought they were cashed up AND have an ongoing revenue stream from Galoc.

Is this part of a grand plan to emerge stronger when the oil price recovers? Or are they raising cash to ensure survival?

who knows. I'm 50/50 on buying some more at 7c. I just don't know if the company is still committing resources elsewhere (exploration in Argentina, Turkey etc.) or if it is just battening down the hatches and surviving. Hmmm.

 

[rhen]

who knows. I'm 50/50 on buying some more at 7c. I just don't know if the company is still committing resources elsewhere (exploration in Argentina, Turkey etc.) or if it is just battening down the hatches and surviving. Hmmm.

Technically, at least from my reading of the chart, OEL is very oversold. Euroz seems committed.
http://business.inquirer.net/money/topstories/view/20090414-199356/Galoc-oil-flow-shows-solid-margin

Otto Energy is meanwhile raising $35 million via an institutional placement and entitlement issue fully underwritten by Euroz Securities. Euroz, which is also helping to place $5.2 million worth of shares from institutional and sophisticated investors, is fully underwriting the remainder after major Otto shareholders Santo Holding and Molton Holdings both agreed to take up their full entitlement and sub-underwrite a proportion of any shortfall up to $9 million each.

http://www.businessspectator.com.au/bs.nsf/Article/Continental-drift-$pd20090326-QHBAV?opendocument&src=rss

I have recently bought some shares in OEL.

 

[Captain Haddock]

since the BHP deal has lapsed, they're now issuing to holders at 5c, 3 for 4. I'll snap some up, it won't break the bank and I've got big hopes for Argentina!

 

[onshow]

Hi all i am pleased to say after much reasearch and reading other peoples thoughts good and bad i have bought my first parcel in OEL today at .061. I just think the potential outweighs the cons on this one if we are prepared to be patiant sure it may drop back to .05cents but i highly doubt it there is to much support around the .06 cent mark and come on why would its major shareholders be taking up the share offer if they didnt know something with potential was there, they are just not going to throw away money at nothing and after all they will be in the loop of know all as they are the mojor shareholders. Sure they have some debt and the share price is up the creek but long term it looks good. These are my thoughts would be great to hear others. good luck to all!!

 

[Captain Haddock]

I think you've done well ^.

Otto will bouce back, all the directors are snapping up their share options, the company has sound prospects in several markets. I think we'll see a run on OEL later in 09. Will be interesting to see if the BHP deal will be resurrected, they're still in discussions.


and yes I do hold OEL!

 

[sandybeachs]

possible gross revenue from galoc aud$71bbl

here's the deal..

Palawan Light could be fetching around US$52bbl (Brent US$54bbl).

convert that into AUD$ = AUD$71bbl (excluding taxes etc etc)

Otto's interest in Galoc Oil Field 2755BOPD X AUD$71bbl (excluding taxes etc etc) = AUD$195K per day (excluding taxes etc etc)

with a stab in the dark NET revenue could be AUD$45bbl X 2755 = AUD$124K per day.

 

[sandybeachs]

Gazatta-1 well being drilled soon.

here's hoping things go well for both Otto & Ascent


Ascent Resources has two very exciting Italian jobs on the horizon – including the Gazatta-1 gas exploration well in the Po Valley. This prospect is in the Bastiglio-Cento block (Ascent 50% and operator, Otto Energy of Australia 50%) which also includes the nearby lookalike target Rubiera.


Gazatta and Rubiera, according to the seismic evidence, represent a major opportunity for Ascent and its partner. The chance of success at the Gazatta-1 well is put by Ascent at some 60%, very high by industry standards. And with potential unrisked resources estimated at some 350 billion cubic feet of gas, the potential upside in this block is clear. Such large volumes of gas - if they exist - would be worth multiples of Ascent’s current total market capitalisation. Otto has farmed-in for a 50% stake, by paying for the past seismic and the costs of drilling Gazatta-1, and will also pay for drilling Rubiera-1 if certain success criteria are achieved on Gazatta-1.


Whilst Gazatta-1 is a very important opportunity, there are two further high-impact prospects in the near-term plans, as outlined below

http://www.proactiveinvestors.co.uk...ces-gears-up-for-busy-drill-program-4914.html

 

[sandybeachs]

fairly reasonable day

11mm plus traded with a high of 8.2cents (closed 7.7 cents)

still the markets are very unpredictable at present and who knows what tomorrow may bring.

i've got my fingers crossed that Galoc debt will be payed of by the end of June, good chance should oil prices stay above US$50bbl..Following this Otto will have a decent revenue flow..

Gazzata #1 shouldn't be far away..

.

 

[musicman]

Had this one for a while now forgot all about it. Very promising tenements in the Philippines ,in trading halt at present.Have been waiting for an off-shore drill rig for nearly a year[hopefullythat is what this is about] Independent report values stock at between 35c and $1.17 [based on oil at $45 a barrel US.
If they get their rig it should be a good buy...
Had a chance to take more in fully funded capital raise last month but didnt.
See what happens...so keep a watch on it....especially in the current oil climate
Ive had these over a year so do your own research.....

I have NIDO (NDO) who have 25% of that well which Galoc is operating,
(check NIDO website) I think OEL have about 50% maybe more.
Nido say they are pumping 14,000 BPD which should equate to heaps of daily revenue for OEL.
NDO have jumped from 8 cents to 15 cents in the last few weeks.

musicman

 

[sandybeachs]

Re: possible gross revenue from galoc aud$71bbl

here's the deal..

Palawan Light could be fetching around US$52bbl (Brent US$54bbl).

convert that into AUD$ = AUD$71bbl (excluding taxes etc etc)

Otto's interest in Galoc Oil Field 2755BOPD X AUD$71bbl (excluding taxes etc etc) = AUD$195K per day (excluding taxes etc etc)

with a stab in the dark NET revenue could be AUD$45bbl X 2755 = AUD$124K per day.

Brent currently at US$56.15bbl. Up US$2.03bbl or +3.75%.

too establish an approx price for Palawan Light you discount Brent between $1.00 ~ $3.00 (i assume thats in US Dollars).

this is good news for Otto, oil price rising means bank debt will be paid off even more quickly.

as far as i'm aware bank debt will be repaid by the end of June, then Otto will have a decent cash flow coming in.

as usual trade wisely..