I hold also hold a sizable numer of shares in OEl and have been...

I hold also hold a sizable numer of shares in OEl and have been following the company for the last few years. I think that company has huge potential but to answer the question why is it only valued at 110m. Here is my opinion.

1. The general current market sentiment is crap. All spec stock as currently down 10-30%. Now one ones if the markets will improve or crash again sometime this year.

2. OEL has only 30m cash and a little money coming in from Galoc. Even if Galoc phase 2 goes ahead it will take until the end of 2013 at least to recoup the investement.

3. They had the Lampos prospects which we have heard nothing about since 6 months. (why? if they are so hot then they should have them farmed out by now).

3. The Duhat well which was rate a very low chance of sucess, and may or maynot get redrilled.

4. Africa which will take years to develop to a drillable stage.

5. Uncertainly about when Cinco sc55 will be drilled and again a small chance of sucess if it does get drilled.

Will OEl greatly improve their cash position before the end of 2013? Probably not, the little money coming in is straight away spent on current projects.

Will OEL drill a sucessfull well in the before the end of this year? Probably not either, as not much currently drilling on the horizon.

I think people will begin to invest when Galoc phase 2 is near completion and cashflow will improve or drilling gets underway, both schedule for sometime in 2013.