Oil and gas company Otto Energy Limited’s [ASX:OEL] share price rose over 50% in early morning trade today. The company has stakes in several different projects and regions, including the Gulf of Mexico, Texas and Alaska.
What’s the news behind this price move?
This morning the company announced a successful discovery in Texas from an exploration well. This means Otto will have further hydrocarbons to add to its reserve base and will diversify its current revenue stream. Otto said it expects first production from the well by the end of March 2019.
Otto will release a more definitive calculation of the recoverable oil here in due course.
The company will also await the next well to be drilled as part of this prospect. The ‘operator’ is a separate company. Otto, however, has a 37.5% working interest in these Texas leases.
There could also be further news from Otto’s other projects in North America shortly.
If you’re interested in this stock, one idea is to include Otto on a watch list and keep an eye on further developments while studying the business and its prospects.
This is an introductory piece only. This article is not an endorsement of Otto Energy or a recommendation to buy and sell. It’s an observation that it announced positive news today only.