Oilex Ld Share Discussion Threads

[southway2] 31/1/2022 19:40

But either way it's too low

[southway2] 31/1/2022 19:40

That is probably the Oz mcap .

[ashleyjv] 31/1/2022 19:09

I got my figure from the Oilex website and Bloomberg

[southway2] 31/1/2022 19:04

HL have mcap at 15.4m

[cool hand kev] 31/1/2022 19:03

Any chartists out there someone on Twitter is predicting 30,38 45 BWTFDIK

[sunnyjim89] 31/1/2022 18:54

Thought there were 7.112bln shares in issues, therefore more like a 16m mcap.

[southway2] 31/1/2022 16:31

Around 15m I believe.Peanuts when flows confirmed

[cool hand kev] 31/1/2022 16:27

Apparently the ADVFN market cap was incorrect

[billthebank] 31/1/2022 16:21

This is low as us GBP and TRP at around,£7M

I am sure there are many others too

[bullrun1] 31/1/2022 16:11

It is 13million.

[billthebank] 31/1/2022 16:11

Only kidding!!

[billthebank] 31/1/2022 16:09

You think it should be lower!!!!!

[southway2] 31/1/2022 15:52

15m mcap for this is extraordinary

[ashleyjv] 31/1/2022 15:49

pressure building up just like the gas supply. it sounded funnier in my head

[southway2] 31/1/2022 15:42

Everyone realising

[bullrun1] 31/1/2022 15:21

Presure building up again.. topped up with 7.5million this morning, is an update in the post, let's hope so!!GLAH

[cool hand kev] 31/1/2022 10:51

Are the CCS report and environmental clearance the same thing?

[buci] 31/1/2022 08:08

Everyone is focused on Cambay and ignoring Carbon capture. I think the next big news will come from CCS report that should be ready by today according to the quarterly.

[josephrobert] 30/1/2022 15:56

That's a fair amount of text Transact201830 Jan '22 - 13:57 - 428 of 428

If I can add to that I would suggest that there is a misunderstanding on the flow rate of 77 and 73. I quick look at the history of 77H will show an intial flow rate which vanished to next to nothing. For example



'Cambay-77H

During the quarter, the Company completed the workover at Cambay-77H which included replacement of the frac tree with a production tree and installation of production tubing.

Since restarting production, Cambay-77H has gradually increased from 51 boepd. The initial average production rate for 10 days (IP10) was 71.5 boepd and average IP10 condensate gas ratio (CGR) was 92.5 bbls/MMscf. Production for 30 days was achieved on 4 January 2016 and Cambay-77H averaged 70 boepd, meeting the buyer's demand, with an average tubing head pressure of 1,851psig and the CGR remained stable averaging 90 bbls/MMscf. With further production, it is still expected that the CGR may decrease to the anticipated 40-50 bbls/MMscf as the tubing head pressure decreases..'

They produced a lot more oil than expected due to the unsucessful frac. They drilled for gas and got oil, and they don't want oil - they dodn't have the infrastructure for that.

The pre frac production is uncommercial; it will burn cash not add.

I think we also need to make clear that if the 77 refrac is successful with kicking out commercial returns based on the expected future cost of a horizontal drill i.e. the 3-5 mmscfd then we then prepare for two drills in the second half. If the refrac is not successful then we can't show to investors a possibility of a commercial return. It either works or it doesn't, it is an almost binary outcome - we are either worth a lot more than we are now, of maybe the same if we are lucky.

It may make sense to look towards the steps needed for the refrac rather than something which may or or may not happen until we get a sucessful result from the refrac. Other than that the other driver of the share price will be the GOIs 'rubber stamp'.

Hope it helps somewhat to explain why the share price is at current levels.

GLAH

[transact2018] 30/1/2022 13:57

I have just posted this on the LSE board.

I think it’s fair to say that OEX has caught many an eye these past few weeks and the volume of trading we have seen is testament to that with over 3.6bn shares traded since the placing. Putting that into context that’s over half the shares in issue and will have seen £7-8m change shareholders hands. So what next?

Next week we should see both a production and environmental clearance RNS, combined as one as there will be little time delay between written confirmation of clearance and the production taps being turned on. From what we have been told 2 wells are due to be switched on C77 and C73. These wells have been shut in for 3 years so there could be a build up of pressure, and the expectation is that these could produce up to 1mmscfd. This is prior to any new fracture stimulation techniques. What does this mean in terms of revenue?

C73 and C77 producing 1mmscfd each could generate a combined revenue of approx $8600 per day based on the current off take agreement in place. So $261k per month. Let’s allow for some production down time and perhaps lower flow rates than anticipated and drop that figure by 20% as a contingency, still would generate us $209k per month. Let’s now look at the current cash-burn and see how this revenue will help.

December recent quarterly report shows us last quarter expenses were AUD $ 1.09m (USD $763k), so USD $254k per month. I would expect these expenses to increase as we commence production so let’s assume these increase to USD$300k per month. Our adjusted contingency production income of USD$209k will cover 70% of our monthly expenses. Much better than today where we have no income whatsoever.

What’s next in the news flow timeline? After commencement of production we should see the following ;

> announcement of successful tender for the refrac equipment. Early February.
> preparation of C77 for commencement of the refrac activities. We are told this is quarter one, so let’s expect refrac activities to commence in March.
> announcement of initial re-commencement flow rates from C73 and C77. We may see some numbers in February.
> refrac outcomes and increased flow rates (hopefully) from C77. April onwards.
> based upon production numbers and refrac outcomes we may see an updated CPR produced.
> financing for two new wells is required. First well to be drilled H2 2022. We are told that these two wells are likely to form part of a farm-out of the licence. What could a farm out deal look like? I suspect Oilex will need to relinquish at least 50% of the whole Cambay licence if not more, to fund the next two wells and give continued working capital for the development of the field. It’s too early to speculate what numbers could be achieved for a farm out.

As we can see there is a plethora of news due. Each one of these could help drive appreciation of the market capital and share price. Is that a given, no, but for those with high risk appetite I don’t see us at £14m market cap for much longer.

[yuri mk2] 29/1/2022 16:00

It will be sooner than you think ash. We’ve just been given the environmental clearance so there’s nothing stopping them turning it on. Expect the RNS next week.

[ashleyjv] 29/1/2022 12:27

Until the gas starts flowing, this share is mostly considered as speculative.
They said it will start flowing shortly which, I've decided to interoperate that as meaning up to a month. The Indian government giving us the nod will also help us dramatically, IMO

[sellsell] 29/1/2022 12:13

I can't understand why this is only valued at around £15m. Hopefully that will change to the upside very soon

[ashleyjv] 29/1/2022 08:55

I can cope with 3p-ish per share