Otto Energy Seeks Shareholder Approval to Sell SM 71 Gulf of America Asset to Byron Energy Inc.

Mukul

11 November 2026 01:19 PM AEDT

Otto Energy Seeks Shareholder Approval to Sell SM 71 Gulf of America Asset to Byron Energy Inc.

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Otto Energy Limited (ASX:OEL) has issued a Notice of General Meeting scheduled for 16 December 2026, at which shareholders will vote on the sale of 100% of the legal and beneficial interest in its Sale Assets — including its South Marsh Island 71 working interest — to Byron Energy Inc., under ASX Listing Rule 11.2 as a disposal of its main undertaking.

Key Points

General Meeting set for 10:00am WST on Wednesday, 16 December 2026, at Steinepreis Paganin offices, Level 14, QV1 Building, 250 St Georges Terrace, Perth WA 6000
Resolution 1 seeks ordinary resolution approval for Otto Energy (Louisiana) LLC, a wholly owned subsidiary, to sell 100% of its interest in the Sale Assets to Byron Energy Inc.
Shareholders eligible to vote are those registered at 5:00pm WST on Monday, 14 December 2026
A voting exclusion applies to Byron Energy Inc., Byron Energy Limited, and any person who will obtain a material benefit as a result of the disposal
The company holds non-operated working interests in five producing assets across Texas, Louisiana state waters, and the Gulf of America

Background to the South Marsh Island 71 Disposal

Otto Energy is an Australian-listed oil and gas production company with a core focus on the US Gulf Coast. On 24 June 2026, the company announced it had initiated a formal sale process for its Gulf of America assets, comprising working interests in South Marsh Island 71 (SM 71) and Green Canyon 21 (GC 21), engaging PetroDivest Advisors LLC as exclusive financial adviser. On 10 September 2026, the company disclosed the process attracted strong interest from multiple parties but did not result in an actionable opportunity to monetise SM 71 and GC 21 as a combined package, with market feedback indicating GC 21 carries decommissioning liabilities exceeding its future net cash flows.

Otto Energy's Five Producing Asset Portfolio at 30 June 2026

At the end of the financial year ended 30 June 2026, Otto Energy held working interests in five producing assets. SM 71 comprised a 50.0% working interest and 40.6% net revenue interest in an offshore oil field in the Gulf of America, operated by Byron Energy Inc., with FY2026 average production of 360 boepd. The Lightning field in Matagorda County, Texas, operated by Hilcorp Energy, recorded 681 boepd at a 37.1% working interest. GC 21, operated by Talos Energy, produced 111 boepd. Mosquito Bay West and Oyster Bayou South, both in Terrebonne Parish, Louisiana, operated by Castex Energy, produced 89 boepd and 25 boepd respectively.

Meeting Voting Procedures and Proxy Arrangements

The Notice of General Meeting, dated 11 November 2026, outlines that shareholders may vote in person or by proxy. Each shareholder holding two or more votes may appoint two proxies and specify the proportion of votes each proxy is to exercise. Where a shareholder appoints two proxies without specifying vote proportions, each proxy may exercise one-half of the votes, in accordance with section 249X(3) of the Corporations Act. Shareholders attending in person who have already submitted a proxy form will not automatically revoke their proxy unless they actually vote at the meeting. Registration opens at 9:30am on the day of the meeting.

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