Oilex shares lift 219% on 4 metre oil intersection 7/09/04 By: James Seabrook
Shares in Oilex Limited (OEX) jumped a massive 219% within moments of the company announcing that 552 metres column of dark green oil was struck in the drill string at the Rookwood South-1 well. Although the company’s managing director Mr Max Cozijn confirmed the drill string result, Victoria Petroleum NL (VPE) who has approximately 30% interest in the project explained that the drill string test was performed on a relatively modest four metre intersection.
The directors of Victoria Petroleum reported that oil show fluorescence at the South Queensland ATP 608P well (see map) was encountered upon penetration of Boxvale Sandstone from 1,378 to 1,382 metres.
“Drilling then stopped as planned, still in the Boxvale Sandstone and a drill stem test was conducted over the four metre interval,” the group added.
The consequent drill stem test result was the figure reported by Oilex.
Commenting on Oilex’ announcement, SHAW Stockbroking resource analyst Mr John Colnan said that there would have been considerable pressure in the intersection, however the finding was just four metres.
When asked when the company would resume trading, Mr Cozijn told egoli that the trading halt would likely be lifted tomorrow.
At 1700 AEST, shares in Oilex were up 219% or 35c to $0.51 on low volumes, while Victoria Petroleum shares gained a significantly lower 7.4% or 0.2c to 2.9c.
OEX Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
