OEL - Otto Energy

[munga]

I dont hold, but looking at the SP its dirt cheap, at pretty much an all time low with pretty high volume.. Any opinions on when if ever the SP is going to turn around??

could be sooner rather than later
nice flag happening and volume
could breakthru shortly
would like to see some news to give it a leg up

 

[Captain Haddock]

Otto still hovering around 6.5c...they must be banking some serious cash by now?

Looking to expand further into Galoc...

AUSTRALIAN FIRM OTTO ENERGY LTD. IS eyeing three more prospects in the Galoc oil field in offshore Palawan, to further boost production.

Under the Galoc Phase 2 development options, Otto Energy said the consortium was targeting to increase 2P reserves by 5 million barrels of oil by drilling two new wells, which are estimated to yield about 4,000 barrels of oil per day.

These wells may be drilled in the northern portion of the Galoc structure to access undeveloped reserves.

Otto earlier said the Galoc oil field had another 8 million barrels in gross contingent oil resources in these two new wells. This was on top of the remaining reserves in the field, estimated at 8.4 million barrels as of end June.

Prior to the start of production in October 2008, oil reserves were estimated at 10 million barrels.

The Galoc consortium is expected to undertake seismic interpretation and preparation of drilling costs and schedule starting this year until 2010, Otto Energy said in a regulatory filing.

Otto holds a 31.38-percent stake in Galoc Production Co. WL, operator of the Galoc oil field.

Currently, the Galoc oil field is operating at a rate of 11,500 barrels of oil per day (bopd), down from its initial rate of 18,000 bopd. So far, operating expenses were estimated at $25 a barrel while Phase 1 capital expenditure stood at $13 per barrel.

 

[Atlas79]

Two days in a row some nice movement... anyone got an opinion on what's up? We looking at a potential breakout here?

 

[condog]

Two days in a row some nice movement... anyone got an opinion on what's up? We looking at a potential breakout here?

Ts certainly ready to break out....

From a fundamental point thoguh it has an ordinary history of poorly used cap raisings, with a massive one in 2009 effectively diluting shareholders equity in half...... Its got a lot of upside potential with contract just signed for Ederine....

I ran the numbers and with Galocs 19% interest of 400K BO p.a plus Ederine 30% interest in 12 MMcf / day at say $4net per GJ.....this gives them net cash flows of approx $8.5M USD or approx 9.2 M AUD p.a before admin and exploration costs......

On this figures in isolation its nothing to get excited about, however therses further exploration in some large very indicative tenements so it certainly has some upside potential.....

One to keep an eye on.... its bounce this week is on the cash flow news from the Ederine gas contract i assume....

 

[doogie_goes_off]

A deal with BHP sees BHP fund a large seismic program, potentially 2 deep holes and earning up to 60%. As a 40% contributor to such a project if sucessful OEL revenue could grow considerably. A hold position for a year or two could be quite lucrative. NB - Holding a few. Oh yeah and has finally broken out of trading range on the news (nice)

 

[condog]

Well the gas contract wheren much puff, but by god the bHP announcment has the punters excited.....

And it looks like OEL has managed somehow to negotiate a pretty reasonable outcome for multiple scenarios....

One to keep an eye on ..... lookout for seismic results and hopefully possible drilling announcments...This should certainly accellerate things ans free a lot of cash flow.... A Great result for OEL so far...

 

[Happy]

I just hate those gaps, that almost always seem to get filled in.

Hope it is different this time (?)

 

[Boognish]

A bit of backstory, I jumped on OEL at 14c when some analysts were tipping it. Turned out to be a good 'un as it climbed to 54c at one point but I got greedy and did not jump off. OEL seems to have been hit extra hard by the GFC but I am pleased that it's showing signs of life once again. They surely must be about to have a good year.

 

[Happy]

On my chart OEL price goes only up to about $0.44 so there must have been some adjustment on the way.

 

[Atlas79]

DRILLING UPDATE – KUMLUK‐1, EDIRNE LICENCE, TURKEY

Otto Energy Limited (ASX: OEL) advises that the Kumluk‐1 exploration well reached a total depth of 550 metres (m). After logging of this well, net pay of a total of 9m over three intervals was interpreted. These results are in line with pre‐drill estimates. This continues the 100% exploration drill success that Otto has experienced in our Edirne licence area.
The well has been cased and cemented as a potential future production well.
The Operator is preparing to move to the next well location and anticipates spudding the Kartal‐1 well during next week, depending upon prevalent weather conditions.

Yours faithfully

 

[skip9]

Strong Results of late for OEL. What are the thoughts on what will be the significant factors for OEL to continue over 2010?

 

[Boognish]

Today's annoucnement:

TURKEY EXPLORATION AND DEVELOPMENT UPDATE
Edirne Gas Plant

Otto Energy Limited (ASX: OEL) is pleased to advise that the construction of the Edirne Gas Plant System has been completed. Gas sales will commence following completion by BOTAS, the state‐owned pipelines and trading company in Turkey, of a hot tap on its 14” main line to create the delivery point for the Edirne gas. The Joint Operators are in the process of retrofitting the hot tap fitting to accommodate Botas’ requirements. The hot tap is expected to be completed near the end of March with first gas
sales shortly thereafter.

Otto has finalised gas gathering and tolling agreements with the Joint Operators of the Edirne Gas Plant to process the gas from the Edirne Fields which is jointly owned with Otto. As previously announced, all gas production from the Edirne licence will be sold via dedicated sales arrangement to AKSA Dogalgaz Toptan Satis A.S at a 15% discount the Industrial Interruptible Tariff benchmark set by BOTAS and Otto has elected not to participate in the Gas Plant ownership.

Otto expects that the discounted gas price in the short term will be between US$7.00 to US$8.00/ GJ. The discounted gas price will change over time reflecting amendments in the tariffs set by BOTAS.

The Edirne Joint Venture partners comprise Otto which holds a 35% interest in
the Edirne Licence and Joint Operators Transatlantic Mediterraean Int (TEMI)
(55%) and local Turkish company Petraco (10%).

Phase 2 Drilling Program
The third exploration well in the phase 2 drilling program, Yolboyu‐1 well
reached a total depth of 2,000 metres (m) on 15 March 2010. Preliminary
evaluation of well logs indicates the potential of gas in the Upper Danismen Formation and the well will be suspended for future evaluation. The Operator is preparing to move the rig next well, Somurcali‐1.

Good to see a junior moving ahead to production. I hold a small parcel in this company so obviously I wish them all the best

 

[Slipperz]

I think OEL has about to bounce.

I brought in on the technicals.

A doji followed by two inverted hammers is a fair indicator we are in for a trend reversal here.

Volume has all but dried up, fundamentals are solid.

Cashflows are good and exploration prospects excellent.

In for a medium term hold.

 

[BESBS Player]

Been buying into OEL as a BESBS play for Q2 2012 over the past 3 weeks.

Big targets, BHP alongside. Providing the market holds up, seems a no-brainer. Got my fill. Now wait and see...



Holding OEL at ave. 8.9c

 

[Wysiwyg]

Strong rejection of 10.5 c today. Entry was on the 28th Nov. and exit was today. Plenty of time for another low lesser 9 cents.

 

[BESBS Player]

Agree WYSIWYG.

I'm not buying above 9c and I'm watching for any dips as momentum stalls and we get a rough day or two along the way on the market. Bound to happen in this global climate. If needed, I'll average down slightly as this should be a ripper BESBS play when drilling approaches mid-2012.

 

[BESBS Player]

Liked the confirmed drilling date in the recent Investor presentation

"SC 55:

BHP partner.

Cinco prospect to be drilled April 2012."

Been accumulating more and will try to pick up a few more if the SP drops in a general market downturn. Still looking for cheap bites


Holding now at 8.7c ave

 

[Bonk]

Hearing hints that something could come out of left field on East Africa. OEL is to have change . Dont know what exact , but be alert for it all. That includes a new well to be announced in Philippines ?

Hold OEL av 7.5c

 

[BESBS Player]

Hi Bonk,

Nice to see the SP heading northward. 9.5c is a nice place to be this far out from drilling.
I'd be happy for anything from East Africa - don't think that would hurt the SP!!:

Holding at 8.7c ave.

 

[BESBS Player]

Still holding despite the rig issues. Should still be a good BESBS run in 2012.

Holding OEL at ave. 8.9c