The stock has a seller that does not change tact with news. We may just be seeing a distressed seller who will run out of bullets at some stage. The drilling program has only really just started so i remain very long and non flustered by this. The fundamentals are as strong as ever for me. I think oilex was very unlucky with its first well in Oman and the market simply could not work it out. They still managed to get 400bpd out of screwed up well. What the market does not understand is what they maybe sitting on there. The shear size of that target is enormous. The oil is there and the company will redrill later this year. You dont do that if you think its marginal. I think that oil field could be in the hundreds of millions of barrels of oil and one more well might make people wake up and take notice. The stock is undervalued imo and Cambay is looking good. The first well in Cambay is not straight forward, but its being fracced etc. They will drill another 5 wells there this year and the targets are oil, gas and condensate. Indonesia will come into production this year with the potential for multiple production wells in that field. They have nearly $50m in cash and the stock price does not reflect any upside what so ever. we could have 4 dry wells in a rowe and the stock would still be cheap imo. good luck and dyor.
OEX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
