Just a quick note to recap on Oilex.
You’ll all recall that the Blog is very positive on this company. I see significant gains here over the next several months as Oilex charge ahead with Cambay-76H well, which is expected to spud in May 2011.
“The Cambay-76H well will evaluate the production potential of the extensive Eocene “tight” Y-zone reservoir that extends across the 161 km2 Cambay PSC contract area. The well, which includes a 610 metre lateral section, is expected to take approximately 35 days to drill and complete. A two month production test will then be conducted after an 8 stage fracture stimulation of the Y zone. Independent Reserves Certification. A data package for the Cambay Field “tight” reservoirs has been submitted to an Independent Reserves Certifier, Netherland Sewell Associates Inc (“NSAI”) and technical discussions with the USA based Certifier have commenced. The Company has engaged NSAI specifically for their expertise in North American tight reservoirs, some of which have similarities to the Cambay Field “tight” reservoirs.”
What the last Rns should be signaling to Investors is that Oilex are expecting to place Cambay-76H ON PRODUCTION TESTING. So it is not a question of “if” they find gas but rather” how much is there?” the Cambay Field contract area has considerable oil and gas resources and Oilex are there to exploit this under the PSC further evaluation through proven North American tight gas/shale gas technology, including horizontal drilling and fracture stimulation is expected to enhance recovery factors. It wasn’t so long ago that Oilex were being compared to Cairn and once Cambay goes on Production then these similarities will again begin to be mooted. It’s been a long wait for investors but at last the future here is looking bright. The Rig mobilisation to the site and the procurement process’ are all but complete with the site now ready. The clock is ticking here and I expect that the share price will increase (as it is now at the time of writing) as the market watchers begin to take positions. I can confirm that there has been some deft sleight of hand here by Oilex re’ recent stock positions taken by associates linked to the company.(I did write a piece on it some time ago.)
So it’s eyes on here and most importantly get your investment strategy right. They could very well hit 100p depending on the news flow. The Market StockWatch is for 40p if it’s breached then it’s game on!