Oilex. Stock Set to Rise.

It's a carve up here!!!!

It’s great to see Oilex on a charge. They have been rising and trending up over the last few months in particularly since the trading halt of last month, which I might add was badly managed and leaked by the company, Oilex placed 30,000,000 shares with sophisticated Professional investors at a price of 20p raising many millions in funds. We here are hearing good news is being touted about the company/India assets.  It wasn’t so long ago that Oilex were being compared as the next Cairn. The Blog put a target price of 65p on these quite some time back when they were trading well below 20p. Many scoffed and rolled their eyes to the heavens but as time goes by the 65p target is looking good to go!

What is pushing this sp? Well it seems that stake building is taking place in preparation of the announcement/update/Drilling  in Q1 2011. The 2010 RNS “significant reserves identified Cambay field”6th of Sept 2010 will be quantified. Funds are now in place.

The net proceeds of the Placing will be applied primarily to further drilling
on the Cambay Production Sharing Contract “tight” Eocene reservoirs in Gujarat,
India, and for working capital. This drilling will be in addition to the
Company’s first proof-of-concept horizontal well on the Cambay Eocene
reservoirs planned for Q1 2011.

Another pointer here is the AGM where I believe that the 4,000,000 share option being granted to Sundeep Bhandari/IHL (a related party interest) will be rubber stamped.

The Managing Director and controller of IHL, Mr Sundeep Bhandari, is the son of
Mr Laxmi Bhandari, a non-executive director of Oilex Ltd since November 2006.
Pursuant to section 228 of the Corporations Act 2001 (Cth) and Rule 10.11 of
the Listing Rules, IHL is a “related party” of the Company.

So it’s safe to say that those “sophisticated and professional investors” must be more than happy with the current rising stock as they ALL are up some 50% on their original investments.  So that begs the question; What were these sophisticated types told in-order for them to part with large sums of money?

Answer; Oilex are sat on massive gas {proven} reserves. Cambay is a gas giant and Oilex are quietly confident that “proof of concept”  will lead to a staggering increase in sp value over this quarter. There are 50p minimum targets being mooted here. 100p looks set to be hit on Cambay news alone.

It’s an insiders carve-up!!!!! They are all buying in on the cheap!!! You heard it here first!!!

Oilex are set to spike. The trend is there for ALL to see.

Eyes on here please.

Viva!

Daniel