Given the work that Oilex has undertaken with its consultants and the evidence accumulated from drilling, Cambay might be considered more mature than a purely virgin play concept. If Oilex�s 45% interest in the Cambay contracts of work were valued at just 20% of recent transaction values along the EFS, then a value of $47 million or 21 cps might be ascribed, while at $13,000 per acre, the project would be worth $234 million or $1.06 per share.
Strachan Corporate ascribes a risk adjusted target value to Oilex of $266 million, including $80 million of new capital which will be required to fully evaluate the Cambay project. Risking its exploration and development assets and applying an average new issue price of 40 cps delivers and risk adjusted target value of 61 cents per share. If Cambay were to be considered a success at the 2P level, Strachan Corporate estimates that it would have a value today of $3.71 per share to Oilex.
OEX Price at posting:
32.1¢ Sentiment: Hold Disclosure: Held
