Member Info for gordon1237

Take it outside guys! Lol.

Lol.

Hi Beadle. Remember the stick you got for saying it would go down to 0.2? Lol.
Hi Yuri. Personally, I find it more relaxing to watch grass grow. Atb.

Yes Callum, of course and obviously, Oilex had to raise money to keep going, but the last thing we want is more dilution. We've had more than 50% in the last two years and 80% in the last five.

Yuri. If they bought on the open market it could push the sp up. This however, was a raising with consequent dilution. Atb.

Mind you if they have bought 55% from gspc, it seems a bt odd to be indirectly buying about another 1.5 % of Cambay via a share holding in Oilex. Interesting though.

Yes Callum, it does sound like they are interested, even though your original link wasn't referring to the Cambay Field as the dates were all wrong. You could turn out to have the last laugh on us. Just wish we could find out before, I lose the will to live. Atb.

Pregnant pause?

Don't be so impatient Callum. We've only been waiting nine months! Lol.

Callum. Sounds like you're implying that the new partner might finance the drilling in exchange for Oilex's IP. Hope you're right that would be great. But wouldn't that IP be available to gspc as part of their 55%? But then again the tender said farm out of a non operated field, so presumably they need Oilex to be the operator anyway. As usual we know naff all about how these deals are structured. The wait goes on, and on and........
Atb.

One final point Callum, to go back to the start of this thread. The reason I said that the massive ongc investment in conventional drilling in the wider Cambay Basin was irrelevant was because we knew that ongc had given up on fracking as a productive technique. Whereas, we both agree that successful fracking is the key to the Cambay Field. Atb.

Can't disagree with that Callum. That's why I was saying that success of the new techniques are vital to unlocking the value. We won't know for sure until the drilling results come in, probably at least a year's time. The point is Oilex have to get to that point first. For that they need finance,which is in turn dependent on the valuation. If that was to be say $10 million, plus some of the cash calls, that would give a way forward. You have to be in it to win it. Atb.

Totally agree Conger, but it's a huge if, and they won't know until they try it. That's the risk side of the equation.

By the way, we know that ongc have pretty much given up on fracking. See this link.
https://m.economictimes.com/industry/energy/oil-gas/ongc-ends-shale-exploration/articleshow/72233370.cms
This doesn't of course make it impossible for someone else to succeed.

Blimey Callum, do you live in a mansion? Lol.
Don't quite see your point. Of course it matters how much someone is willing to pay for gspc's 55% share as that gives a valuation for Oilex's 45%. They will base that on what they see as the balance of risk against reward. Of course there is potentially huge reward as we know about the quantities of gas/oil in the Cambay Field. Against that they will balance the known difficulties of getting it out of the ground in a profitable way. They will know that gspc/Oilex spent 100 million usd for a minimal return. The hope will be that the new techniques will unlock the value and hit the jackpot. Their assessment of the probability of that happening will determine how much they are willing to pay.
Yes, ongc are investing a huge sum, but over a much larger area and number of fields. Presumably, they were hopeful of getting sufficient returns on their investment to make it worthwhile. As that was a year ago, they presumably know by now. Whether that will translate to gspc's bidder having the same confidence, giving the known risks, we just don't know. This is why I said past valuations of the Cambay Field portion of the Cambay Basin are irrelevant as they date from before the problems were known. Atb

I apologise if I seem patronising but I get the impression that some are confusing the Cambay Field of which Oilex hold 45% and has an area of 161 sq km with the Cambay Basin, which Callum's link refers too, with a total area of 53,500 sq km. The Cambay Field is just one of many fields in the Cambay Basin. It is about 0.3 % of the total area.
The following link lists about 180 fields in the Cambay Basin, with the Cambay Field 10 from the end. Atb.
https://www.ndrdgh.gov.in/NDR/?page_id=629

Sorry Callum. Am I missing something. I have done my own research. Who has offered 10 million for Cambay? We don't, as yet, know who has offered what for Cambay. What has that got to do with ongc investing 259 million in developing the whole of the Cambay Basin as distinct from Oilex's very small part of it, I.e the Cambay Field. Atb.

I crore rupees = 105,000 gbp.

Yes Qs. That's what I got by googling it. Completely irrelevant of course to Oilex. Atb.

Doh. Showing a rise of 0.01 when it's more like 0.001.