Otto Energy reviews sale of two offshore assets

• Otto Energy has commenced a formal evaluation process for the potential sale of its two Gulf of America oil and gas assets.
• The company stated that it remains committed to returning excess cash to shareholders regardless of the outcome of the process.
• The board indicated that the current commodity price environment presents an opportunity to test market value and maximise capital returns.

Otto Energy (ASX:OEL) has initiated a formal evaluation process for the potential sale of its two Gulf of America oil and gas assets to maximise shareholder capital.

The board decided to seek an orderly sale after determining that the current commodity price environment provides an optimal window to realise asset value.

"Despite this track record, the board continues to hold the view that the company’s market value does not adequately reflect the intrinsic value of its underlying assets or its cash generation capability," said Otto Energy Executive Chairman Justin Clyne.

The asset portfolio under review includes working interests in the South Marsh Island 71 oil field and the Green Canyon 21 deepwater oil well, with PetroDivest Advisors retained as the financial advisor.

Following the announcement, the Otto Energy share price was unchanged at $0.006.

The energy firm has built a conventional producing portfolio over several years to generate consistent free cash flow for its investors.

The debt-free business maintains a robust balance sheet while executing the structured asset review.