Otto Energy Limited · ASX:OEL
Otto Energy — The Good Oil Conference 2007
13 slides from Otto Energy's conference presentation, Sep 4, 2007
Slide 1: The Good Oil Conference: Exciting Explorer, Emerging Producer
The Good Oil Conference For personal use only September 2007 Exciting Explorer, Emerging Producer Alex Parks - CEO ASX: OEL
Slide 2: Disclaimer
For personal use only DISCLAIMER This presentation does not constitute an offer to sell securities and is not a solicitation of an offer to buy securities. It is not to be distributed to third parties without the consent of Otto Energy Ltd. (the “Company”). This Thi presentation t ti contains t i fo
Slide 3: Why Invest in Otto?
For personal use only WHY INVEST IN OTTO? Otto Energy (OEL) presents investors with an attractive investment opportunity – as a near term producer and with exploration upside: Cash flow will be achieved from two projects in the next 18 months. (Production scheduled in Turkey and the Philippines in 2
Slide 4: Otto's Philosophy
For personal use only OTTO’S OTTO S PHILOSOPHY Key ingredients: – A strong t and d experienced i dbboard d and d managementt – Quality acreage – Operatorship or an operator we can trust – Solid technical evaluation – A modest cost base – Cash flow is key to future sustainability A sensible and aggre
Slide 5: Board and Management
For personal use only BOARD AND MANAGEMENT BOARD Rick Crabb - Chairman (non Exec) – Also Chairman of uranium company Paladin Resources, Rick has practiced as a solicitor from 1980 to 2004 specialising in mining, corporate and commercial law. Jaap Poll - Executive Director – Founder of Otto Energy an
Slide 6: Otto's Balanced Portfolio of Projects
OTTO’S OTTO S BALANCED PORTFOLIO OF PROJECTS For personal use only Onshore Thrace Basin, Turkey Offshore Palawan & Visayan Basins, Phili i Philippines O h Onshore C Cuyana Basin, Argentina
Slide 7: Turkey
For personal use only Turkey • Three gas discoveries made, with first production scheduled for 2008 • Top tier gas price at US$8 / Mscf & local market • Revenues: Initially US$3.5m/year, targeting US$10m/year, within 12 to 18 months from first p production, assuming g further exploration success. •
Slide 8: Philippines
For personal use only PHILIPPINES Otto has high equity positions in three world class permits • SC 50 (Otto 99%) – Calauit Field: an appraisal opportunity EPT and initial oil sales in late 2008. 2P Reserves 5.9 MMbbls • SC 51 (Otto (Ott 80%) – An exciting exploration block in only ~300m of water wit
Slide 9: Argentina
For personal use only ARGENTINA Otto has agreed to farm in terms on the Santa Rosa Licence • Otto will earn 32.48% by spending US$1.4 million • Otto has an option to Increase to 41.24% for a further US$900,000 The Santa Rosa block, contains the Santa Rosa Dome, a structure that potentially contains
Slide 10: Capital Structure
For personal use only CAPITAL STRUCTURE Shares Options Performance Shares (Gas Production in turkey) Issued 209,637,323 ~15,000,000 2,500,000 Unlisted ** Market Cap A$58.8 m @ 0.28 cps Cash A$12 7m * and no debt A$12.7m (1 September 2007) Increase in market cap p from A$10m $ to ~ A$60 m in last 12
Slide 11: The Potential Impact of Success
For personal use only THE POTENTIAL IMPACT OF SUCCESS Turkey – Each Bcf of net reserves put on production adds ~ US$ 3 million / year revenue to Otto – Otto plans five low risk exploration wells commencing December 2007, with targets between 3bcf & 30bcf recoverable. Argentina – Discovering just 20
Slide 12: Prognosis of Upcoming News & Activities
For personal use only PROGNOSIS OF UPCOMING NEWS & ACTIVITIES Award A ard of Argentina potentially potentiall within ithin weeks. eeks Drilling in Turkey starting December 2007 - five wells F Farm Out O t off Philippines Phili i P Projects j t H1 2008 Commence production in Turkey H1 2008 $$ Drillin
Slide 13: Finally
For personal use only FINALLY Quote from RM Capital Capital’s s research note “Otto is currently trading at an 84% discount to our base case valuation off A$1.75 A$1 75 per share..... h We W consider id Otto Ott represents t a compelling lli near term investment” Thank you. Please visit us at our bo