Here's a little something I picked up along the way, from our friends over there:
SCOTTISHEXILE
Posts: 455
Premium Chat Member
Answer Opinion: Strong Buy
Price: 10.88
HistoryToday 13:42
OEX was put together by a few Directors/employees of Cairn India as a seperate side play to the enormously successful field developed and then sold (for £1.5Billion I think?) a couple of years ago.
Whilst developing that field they came across the depleting Cambay field and researched the old seismic, discovering that low porosities and very tight shales were the cause.
At about that time the USA fraccing rush was building into a successful new technology and, noting similarities between US and Cambay shales formed Oilex for the express purpose of proving the fraccing concept at Cambay.
I don't recall the sp being at 78p but that is possible as the share issue was very small at that time and would have allowed that sort of price on the low Mcap then.
They selected the licence that we have today by carefully assessing some 30 plus depleted wells across the basin and re interpreting old mud-logs and seismic to cover the best part of the basin. It follows that there will be at least another 30 wells to drill with 21st C technology and that OEX are at the start of a journey to become a major producer.
Some of you may draw comparisons to LGO which like OEX had many trials and tribulations and much abuse hurled at the bod before finally coming good and now we are also standing at the beginning of the journey to becoming a serious producer.
You would be right imho to do so - note that LGO is now 7x the price you could have bought just three months ago. It therefore goes without saying that OEX sp has much, much further to run.
OEX Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
