• Otto Energy Limited
• Website: www.ottoenergy.com

Industry:

Oil, Gas & Consumable Fuels

Fiscal Year-End:

Jun 10

Otto Energy (OEL) focuses on oil and gas exploration in Turkey and the Philippines. The company has two major areas of investment, the gas prospective onshore Thrace basin of Turkey and the oil prospective offshore Palawan and Visayan basins of the Philippines.

OEL was originally named Kanini Investments Ltd and in November 2004 changed its name to Ottoman Energy Ltd. The company was listed on the ASX in December 2004. Its head office is situated in West Perth.

OEL operates in the Energy Sector. The outlook for the resources industry is closely linked to the world economic growth and the supply/demand balance for raw materials. The growth in demand in Asia, particularly China, is promising for higher average commodity prices in this decade provided new supply does not come on-stream too aggressively ahead of consumption.

Otto Energy has diversified its operations by undertaking exploration activities in both the Philippines and Turkey. OEL has assembled a balanced portfolio of projects, with various degrees of risk and prospectivity.

Most oil is sold to the nearest refinery at the spot price, whilst gas is typically sold under long-term contracts with price escalators linked to inflation. Because of the global nature of the oil market, every oil producer is a competitor. For gas producers, competition is much more localised and depends on pipeline access to markets. Key competitors include Rio Tinto, BHP, CH4 Gas Ltd (CHX) and Bounty Oil & Gas (BUY).