I do remain very upbeat on Oilex and its future. In saying that I did not expect the SP to be at these levels after our commencement of work in Oman and Cambay.
Obviously the market has been on shakey grounds the last 6 months and will continue in this trend for a while yet. So this has contributed to the current weakness in the SP.
I also believe the seller we have in OEX has been the main reason we are trading at $1.07 and not $1.50-$1.80 where I think is true value at the moment. A small fund I believe has financial strain and has no choice but sell Oilex to generate some money to cover other bad investments they may have blown up on.
This investment requires patience and thats what I intend to give.
Oman has not been understood by the market and I do blame Oilex's conservative approach for this. Bruce McCarthy has a reputation of being a very conserative man which works in the long run but not in market conditions like we are in now.
The market wants to hear numbers so then they can work out the revenues/profits in the future.
Oilex SP I feel will start to trend up from this week on.
Oilex have stated they will be back in Oman to retest sarha-1 field with another well which they will get right this time. This field IMO is massive.Time will tell.
Cambay will also deliver good news in time. More holes to be drilled and Im expecting success from some of them.
Indonesia to be in production early 3rd quarter which will be a massive boost for the SP.
All the right boxes will be ticked in the next 6 months. SP by Xmas should be closer to $3 IMO.
Good luck to all holders.
OEX Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
