cambay hydrocarbon assessment, page-4

Gday dragon,
You need to focus on the contingent resource numbers that are net to oex.

The in place figures tell you how much gas/condensate is in the ground, not necessarily recoverable. If you can't recover it...it is worthless.

The other note is that it is only a RESOURCE not a RESERVE. The difference is, they need the flow data to confirm their modelled RESOURCE before turning it into a RESERVE. A reserve you can take to the bank ;)

So until they confirm flow rates, which imo they will in time, then we will see a reserve statement and revised resource figure.

A the moment we have a fairly substantial 2c resource, as we move to a reserve, I would expect a rerating close to $1 pershare before some additional dilution, which no doubt oex will be hunting on the back of some good results.

This is a low risk play imo, but punters might need to be prepared for a wait and an additional well if the cambay frac doesn't come off. That will be most frustrating but unavoidable and I bloody hope it doesn't happen.

Hopefully that helps :)

SF