uk post

My advice would be to sit tight and wait for real news from Oilex - don't get the cart before the horse.
Take a look at the closing prices for Oilex and the low volumes, on the ASX for the last 5 trading days - see below.

Date Last % Change


20 Feb 2008 1.320 -3.65% Vol* 123,170

19 Feb 2008 1.370 -4.2% Vol 72,687

18 Feb 2008 1.430 -3.38% Vol 52,729

15 Feb 2008 1.480 -1.33% Vol 50,447

14 Feb 2008 1.500 -5.06% Vol 260,341

* Volume of shares shown represents only those shares traded on ASX.

I note the total for the last 5 days, is less than one days usual trading volume on the ASX. So the fact is, in reality, there has not been any substantial selling of Oilex either on the ASX or in London.

Why should any investor sell before they know the whole truth about Sarha-1? The results from this first Oman exploration well (out of the 20 planned wells this year), is not the whole story anyway. IMO if Sarha-1 is a good well, it does underpin a share price rise, and Oilex's efforts in Oman on our behalf. If Sarha-1 ends up not being a good well, the share price has already dipped accordingly IMO, and we move on to the next drilling news from Cambay or Oman.
Investors should remember that Oilex is not a 'one shot' high risk company it is a serious long term player with a long term strategy with financially powerful partners in all its widely spread operations. Oilex is already successful in Indonesia, and IMO will shortly demonstrate success in India (or Oman depending on the drilling/testing programme timings).

To me it is obvious that neither any major Oilex investors, nor 'the market' have taken any position on Sarha-1, but are simply 'sitting on the fence' awaiting the test results from the upper zones.

IMO any selling has been from ultra short term small 'day trader' type investors only.