News: Otto Energy December 2013 Quarterly Highlig, page-14

re: News: Otto Energy December 2013 Quarterly... "As for rons comment who cares what the markets thinks about a coalition of tiddlers if they find 500 million barrels of oil ?"

I am sorry, but ronstieb is absolutely spot on and your statement is incredibly naïve to say the least.

If you have a coalition of tiddlers and chancers, then if you make a decent discovery, getting them all to put their share of the very substantial development money required becomes a huge problem and project finance becomes extremely hard to obtain if you have tiddlers in your JV. That is why the prospect of PPP farming into SC55 would become a sell moment on Otto for me. They are bunnies.

Or more intelligently, go with one large farminee, and if a discovery is made then funding the development is no problem due to the grunt of the larger farminee. They arrange the project finance and Otto just gets cut in for its share.

Look at how much easier the project finance for Galoc was to arrange with KUFPEC in the Galoc van. Having a larger player leading the way gives a great deal of comfort to the bank.

Use your noodle.....