Wysiwyg
Everyone wants money
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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)
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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%).
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?
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?
Whats up? Tanking. Heavy sellof. Its really hard time for OEL. And that will be year 2009 because of dropping oilprices to 30 USD.
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
We anticipate that the 3D seismic survey will be carried out and interpreted in 2009 with drilling to follow in 2010.
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.
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.....
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.
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