There must be a wonderful feeling of anticipation within the Oilex organisation at the advent of such a prolific drilling campaign. The Oman drilling will have the non-operating partners experiencing a similar sense of anticipation and in the case of Videocon there has been a display of exuberance which in industry circles appears unwarranted to the point of being irresponsible. The Operator shoulders the responsibility for operating the licence on behalf of those with a shared interest. That responsibility embraces the compilation of releases of information within the partnership and externally.
In my days with Cairn in India I do recall cases of unauthorised statements to the press by unauthorised parties including Government officials. Much of this was due to enthusiasm coupled with the practice in human nature to tell a secret. To many of us as onlookers it might appear to be blatant ramping but in my view it is more a matter of individuals being unable to keep their gobs shut.
Oilex has responsibilities under company law and I believe management takes those responsibilities very seriously. The Operator must keep its co-venturers appraised of developments and this will precede releases of information into the public domain. I have no doubt that during the forthcoming drilling campaign there will be those who leak details which will spread like wildfire and will be embellished in some cases.
Because of corporate responsibility and other reasons there will be occasions where a well will be declared a “tight hole� which from my perspective indicates something that could significantly affect the share price. It follows that curiosity is raised by those hungry for news inside and outside the company. Inevitably there will be leaks and forecasts of ‘tight hole’ details which generate speculation based on information not properly authorised for release. Much of this can fall into being classified as insider trading which ‘tight hole’ status should go some way to prevent.
I yearn for a succession of ‘tight holes’ during 2008 with the resulting release of details of significant discoveries. I have forecast in earlier posts my expectations for Oilex in 2008. My hope is that there is early success as opposed to a series of dry holes. However, the dry holes and disappointments must be expected as part of the normal hydrocarbon exploration process.
I see no better time to be acquiring Oilex shares because I forecast that the market will soon wake up to the potential this company has in its grasp through prior foresight and initiatives. A bit of good luck would help too.
OEX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
