I'm a long term lurker and even longer holder of the stock. I'm an absolute novice but this is the best news I've seen for this stock in years. I am acquainted with one of the former drillers on the Cambay Well (he no longer works there - he's a fracking guy which they don't need at present). I held the stock before we met but I have lots of mates in the industry so wasn't surprised when this came up.
I recall that at the time when the flow rates were well below everyone's expectation my contact said several factors played into this and it was rare to get it right first time and they'd not had enough tests to find the best approach. I also recall they had an on site accident down the drill hole that cost a lot of money to correct to get the well operational.
This was money they desperately needed to use to test other pressures and sand sizes to maximise the flow. Someone else in the industry would know what that meant but I do know that the additional testing work was never done as they ran out of cash. I also recall that the biggest disappointment they had was the test wells didn't have the gas flow but rather light oil flows instead (if memory serves correct). This contact of mine has over 20 years in the industry all over the world and he truly felt the reason the site was under expectation was the lack of cash to test, not that there weren't reserves with potential to deliver. They need gas, not oil. Getting to just the gas was however the goal they never got to due to the cash issue.
I see this news as very positive because it gives a lot of hope to getting the investment needed to continue the work. How they seek the funding is the only question mark. If its a further dilution for all those long suffering shareholders I'm not going to be too pleased. Either way I'll hold as the region needs gas and now we might finally get some new capital injected to extract it. finally.
Good luck to all
OEX Price at posting:
0.6¢ Sentiment: Hold Disclosure: Held
