new lows in the uk overnight, page-2

The UK guys seem to follow the lead on the ASX.

The UK price has always been higher than the ASX and we have never taken notice.


Lets see how it goes. The major selling looks to have been done and dusted on our exchange.

We await the next round of news to help us determine Oilex financial position which seems to be the only concern at the moment.

Oilex will aim at de-risking its financial exposure over the next few months by farming out and forming JV's with current projects.

This still leaves us with some confidence that the SP will recover over time.

If Oilex can get a favourable farm-in agreement in Timor and sort out Indonesia over the next few months, the SP should head back north in a hurry. Also looks like they might be looking at a JV with the significant gas potential in Cambay.

If we can then top all this off with a great first well in Timor, then the current SP is a bargain.

My thoughts only.