Oilex. Have They Finally Arrived?

ABMckinley A man who knows the industry INSIDE out.

ABMckinley A man who knows the industry INSIDE out.

ABMckinley is a Member of www.guerillainvesting.co.uk

As such he has exercised his right to write!.



You may or may not have noticed the Oilex (LON: OEX) rise over the past week or so from 6.40p to a high of 12.375p (http://www.proactiveinvestors.co.uk/companies/news/70556/oilex-shares-soar-as– cambay-77h-flows-light-oil-and-condensate-to-surface-70556.html ). Some will be asking is this just another false rise, spike or are we missing something here? It’s been well documented over many public forms by Privateers (Retail investors).

I’m a long term investor in Oilex myself; I work in the Oil & Gas Industry and have done for a very long time. My names Alex. B. McKinley you can find me on Instagram as Instagram.com/abmckinley and on twitter as @ABMckinley so I will try to bring my wealth of genuine experience in this sector to give my opinion on how it is and where we are today. No frills, streams of data or ramptastic outlooks just how it is as I see it.

To answer the main question we have to go back to 8th June 2011 when the Company spudded the Cambay-76H Tight Reservoir Well, Cambay Field, Gujarat, India. Expectations were running high leading up to this news with the SP around 23p. Privateers who held at that time would know the SP was in single figures before and leading up to the news released. Remember this? “The well is currently being prepared for flow to surface to remove stimulation fluids from the formation (well clean-up phase).  After the completion of the clean-up operations a flow test will be conducted”. Now remember this quote as you will basically see it again in another RNS on 14th of July 2014.

When Reservoir Well Report No 12 was released on the 24th of August 2011. It said this; “Some delays have been experienced during coil tubing unit interventions to open up the remaining fracture stimulation stages”. Retrieving milling tools in the well was just the start of the problems, after numerous attempts to save the well. On the 25 May 2012 news that the drill pipe had parted on three separate occasions while attempting to be pulled out of the well with the milling assembly was the end for Cambay-76H.

Now OEX faced a dilemma; fund raise, restructure management or start again. The only problem to this scenario was that markets, institutions & Privateers had lost faith. The SP hit an all-time low in Dec 2013 at 2.5p while delays held back the Cambay-77H drill. We were back to square one.

As a PI reading this, you may be horrified to read these past mistakes, yet moving forward you may now understand the future upside of little old OEX, lesson learned, a more wiser company who did get $1M compensation from the operators for using a substandard drill String (pipe).

Cambay-77H Well Frac Stim’ Operations were Completed on 7th July 2014 Cambay – July 2014. Milling Operations Completed, Gas Sales Agreement Endorsed and the big one.


Oilex have took a long time to finally reach this point in time from Aug 2011 but with this news update “Flowback started very strongly and remains on track to take 2 to 3 weeks” It’s like ground hog day, but the difference is OEX has nearly delivered and is now within touching distance of being a producer.

If successful, four more wells will be drilled with a second rig already on site and OEX other holds/assets can only add value to the company mid-long term…

I’m invested. I suggest you get researching, buying, holding or watchlisting. The choice is yours.



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