Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on OTTO ENERGY LTD. We currently have 4 research reports from 1 professional analysts.
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Research reports on
OTTO ENERGY LTD
OTTO ENERGY LTD
Focused on 2016
18 Dec 15
In 2015 Otto transformed from producer to pure explorer. With the drop in commodity prices, this was perfect timing. The first well under the new strategy was not successful – its fully carried Hawkeye-1 exploration well (offshore the Philippines) was declared uncommercial in October and it is seeking to exit the area. However, Otto has added to the portfolio with entry into the Alaskan North Slope, a recent deal in Louisiana and drilling in Tanzania in 2016, pointing to an exciting year ahead for shareholders. After some adjustments, our RENAV uplifts slightly to A$0.07/share, but we will revisit it in the new year following further clarity on the GoM options.
02 Sep 15
The Hawkeye-1 well has been completed and declared uncommercial. While encountering hydrocarbons, the volumes were at the very low end of expectations and were mostly water wet. The results will be built into the SC55 model and next moves there are being considered. Otto was fully carried for the well and so cash balances remain strong to develop the Tanzania and Alaska exploration prospects. Our core NAV remains A$0.04/share and RENAV, removing Hawkeye-1, adjusts to A$0.06/share from A$0.15/share.
More American pie
10 Aug 15
Otto’s A$1.2m in a share acquisition of 100% of Borealis follows swiftly on the recent further farm-out of Hawkeye-1 to Pryce Gases and rapid drilling of the initial stages of the well. Crucially, the acquisition gives Otto, in stages, a greater exposure to the Alaskan Great Bear exploration acreage and development. We see these moves as value accretive, with Otto utilising its cash wisely, giving shareholders exposure to a potentially very rewarding play.
31 Jul 15
With the spudding of the Hawkeye-1 well in the Philippines due imminently, Otto has announced a departure from its historic core operating areas to take a small working interest in the highly prospective North Slope of Alaska. Otto has signed an LOI and taken an equity stake (40%) with private Australian company Borealis Petroleum, which is currently farming into Great Bear Petroleum’s acreage. At the equivalent of US$342/acre and with three wells to be drilled in early 2016, newsflow over coming months has the potential to be very value-accretive. Adjusting for the Galoc sale and dividend, our RENAV is A$0.15/share.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
The Monthly January 2017
09 Jan 17
Despite all the hullaballoo of the Brexit vote and the subsequent election of Donald Trump as the next US President, the UK stock market prospered last year, especially in the latter few months of 2016. The combination of a depreciating currency – making $ earnings more valuable in relative terms - and the Trump emphasis on infrastructure expenditure drove the stock market higher
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.
Minor delay but lower cost and better visibility enhance the investment profile
13 Jan 17
First oil at Stella is delayed by about a month, reducing the contribution of Stella to FY17 production by the same period. While this has an impact on FY17e free cash flow, this is negligible to our valuation. More importantly, FY17 opex are estimated at only US$18/boe, below our estimates of US$20/boe. There are opportunities to reduce opex further. Harrier is expected to reach first oil in 2018, one year earlier than we expected and at a cost of US$40 mm lower than we anticipated. The overall development cost is less than US$6.0/boe. Ithaca holds numerous discoveries around Stella that would be developed with a similar cost structure to Harrier.
16 Jan 17
We take a look at the rankings of the various countries in Africa that have a significant exposure to mining. We take the Transparency International corruption rankings as our starting point and modify these for exceptional geology and for current UK government travel warnings. Ghana, Botswana and Namibia come out as our top three, with Eritrea, Kenya and Zimbabwe at the bottom of our rankings.