Winners and Losers: Otto rises on oil expansion
Otto Energy was one of the week’s Winners on the back of an announcement that the company is joining an oil drilling project in the Gulf of Mexico.
Shares in Otto Energy rose by more than 18 per cent in the past five trading days after announcing last Monday that it is joining Byron Energy in drilling a new oil well off the south coast of the United States.
The well will be operated by Byron, and is proposed to target an area that has produced over 5 million barrels of oil since 2018.
“The well is considered relatively low risk and a prudent investment in the continued development of the field,” Otto said.
CEO Phil Tranjovich said he was excited to participate in the project “with the objective of boosting current oil production”.
“The well, if successful, will utilise existing platform and pipeline assets Otto has previously invested in, resulting in a rapid time to first production,” he said.
“This well fits with the strategy of the company to maximise returns to shareholders by evaluating capital expenditures that will result in investments on existing leases where there is a high probability of success.”
Another riser for the week was 1414 Degrees which secured an investment of up to $4.7 million from the Lind Global Fund II – an entity managed by New York-based firm The Lind Partners.
1414 Degrees will use the money to fund its technology development and its Aurora Precinct grid-scale battery near Port Augusta.
There was little news from the losers this week, but Spacetalk completed a discounted capital raise which pushed its share price down slightly.
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Power Minerals was the biggest Loser, falling 17.27 per cent, while Nova Eye Medical, Jade Gas Holdings and Oakridge rounded out the list.
The full list of Winners and Losers for the week ending 20 September 2024:
Data compiled by Baker Young Limited analysts.
