ARTICLE PUBLISHED: 15-12-2015
If you’re looking for a proven counter-cyclical oil play, look no further than Otto Energy (ASX:OEL).
Earlier this year, with the price of oil at $100 a barrel, OEL sold its Galoc Oil Field in the Philippines for US$108MN, and returned AU$74MN (70%) back to shareholders as a thank you for their patience.
Given the temporary down cycle in the price of oil, and OEL being cashed up compared to its peers, it has embarked on an acquisition hunt that has led it to the Gulf of Mexico.
In a move that would have been almost impossible in a high oil price environment, OEL has managed to insert itself in prime Gulf of Mexico real estate – a region with yearly production in the hundreds of millions of barrels and significant existing infrastructure to tap into.
OEL has just farmed into Bryon Energy’s multi-asset portfolio onshore Louisiana and offshore Gulf of Mexico.
OEL has chosen its partner well:
Otto Energy (ASX:OEL) is a countercyclical oil explorer with a proven track record of finding assets on the cheap and selling them for a profit.
It’s most recent lucrative disposal was theGaloc Oil Fieldin the Philippines, sold to Nido Petroleum for US$108MN. The deal saw its shareholders rewarded with a AU$74MN pay out, at $0.064 per share.
