Nothing to worry about here IMO, price will come back eventually. 77H is a proof of concept well, it appears to have been a success. The next well will be the main event. Enough capital was raised prior to drilling to ensure that a poor result didn’t preclude Oilex from putting lessons learned into practice.
I expect a flow rate of 2.6 mmscfd + 336 bod on 77H. I expect the next well will have a much higher flow rate. Lessons learned from 77 should enable 4 mmscfd and 560 bod in the next well. This will drive the SP above $0.20
I am expecting a share price of $0.80 in two years supported by oil and gas revenue. Share price will continue to multiply as new wells are drilled.
OEX Price at posting:
13.0¢ Sentiment: Hold Disclosure: Held
