Otto Energy Limited (ASX:OEL) CEO Matthew Allen presents at ASX Spotlight Series in a presentation titled, “2015 High Impact Exploration Drilling”.
The company’s strategy is to be an integrated petroleum company with plans to build shareholder value through successful exploration, aiming to convert into production.
Outlining Otto’s value proposition Mr Allen says, “We are, I believe, unique in the junior oil and gas space on a couple of accounts."
Firstly, for a company with a market capitalisation of about $AUD145 million we currently sit with about $AUD135 million cash in bank. So we are trading only marginally above our cash backing.
And that is courtesy of a transaction that closed in February of this year to divest a production asset... We took the opportunity in 2014 fortunately prior to the drop in oil prices to monetise that asset... which has proved very fortuitous.
...What that has enabled us to do is commit to a capital return to our shareholders.”