Hi Jockie, I keep asking myself the same thing " Is something...

Hi Jockie,

I keep asking myself the same thing " Is something missing here"

I then settle down and remind myself to why I invested in this great little company.

The current market conditions have not helped as well with investors selling at any price and throwing all fundamentals out the window. Plenty of stocks have copped it. Some more than others.

Also Oilex are a very conservative company and news released on current well's I feel have not been understood by the market yet. This will all change.

I must admit, I may have been a little early with my investment 6 months ago, but I believe over the next 6 weeks, it will have been all worthwhile! This may not be much to some of you but I have $300k riding on my investment.


I will start with the most important factors first.

1. Great management. This headed by managing director Dr Bruce McCarthy, who ran Cairn Energy’s Indian operations for some years. These were the making of Cairn, now a £4.03 billion company. Plenty of the management team have followed him to Oilex with similar success in mind.

2.Cash in the bank. Plenty of cash in the bank that will fund most of the exploration in the next few years. Production from wells in Indonesia/Oman and cambay also not too far away which starts the revenue streams for future wells and provides cash flow.

3.Great assets. Check out the website (www.oilex.com.au)Plenty of info on the assets OEX holds including commercial wells and potential reserves in place. Also some very interesting presentations from brokers etc.

Current valuation of $3.17 by Hartley's and thats without any success in Cambay-23Z which should be known soon and Oilex have indicated elevated gas readings and confirm that the interval is hydrocarbon bearing and are consistent with seismic anomaly observed.

Also an interesting development over the weekend. An Italian company by the name of Eni has announced the following below. This block is right next door to Oilex's block and this im sure has raised Oilex expectations of Timor which will be spudded mid to late 2008.

By Upstream staff
Italian giant Eni has confirmed that the Kitan-1 exploration probe, drilled in Block 06-105 in the joint petroleum development area between East Timor and Australia, hit oil.

Upstream broke the news of the find last week.

The semi-submersible drilling rig Songa Venus drilled Kitan-1 to a total depth of 3568 metres, with Eni saying in a release that the well "highlighted a significant presence of hydrocarbons".

The well flowed 6100 barrels of oil per day in initial tests, but sources told Upstream last week that Kitan-1 has the potential to flow at higher rates.

Eni said in a release that well data is being analysed to assess the size of the Kitan-1 find.

Eni has already spudded the Kitan-2 appraisal well, which lies 1.7 kilometres east of the discovery well.

The Italian player operates Block 06-105 with a 40% stake. Its partners are Japan's Inpex (35%) and Canadian player Talisman (25%).

ALso check out announcment

http://www.timorseada.org/pdf_files/media_release_kitan1.pdf