"Last Chance for Exposure to Possible Company Maker Oilex Limited (“Oilex”, “OEX”, “Company”) has reported good progress on the drilling of its high impact exploration well, Lore-1, located offshore in the Timor Sea. The well is targeting 195 million barrels of recoverable oil, for which Oilex’s 10% free carried interest equates to 19.5 million barrels of possible reserves. The well is located near to existing producing fields and also the recent Kitan oil discovery, which is currently under development.
We estimate that this well alone could add 115cps for Oilex.
The Lolotoe-1 well will be drilled immediately after Lore-1 and is targeting a further 95 million barrels of recoverable oil, or 65cps to Oilex.
If either well is successful, an immediate follow up well is possible as the joint venture has an option to drill a third well with the current rig.
Other large prospects on the block would also be considered more prospective in the event of a discovery."
OEX Price at posting:
18.8¢ Sentiment: Buy Disclosure: Held
