Member Info for Jasper13

RNS out

The recent placing went into the hands of some large institutional investors. RIM took 60%. The placing was oversubscribed and capped.

Certain people are starting to spout "churn." This is rubbish. Why?

All the institutional investors will have been taken inside. What does this mean? They will have been privy to confidential information about the company's plans, strategy and probably discussions that have not yet been announced. They may also have had to agree not to sell their placing shares for a period of time. Now I know that as I was offered the opportunity but decided not to participate.

There is no way placing shares are being churned to make what in effect would be a zero return. Placing price 0.20p, todays sell price 0.20p.

It also looks as though from recent days trading we have a large buyer/buyers. Look at the block trades in excess of 10m last week and today. Maybe a further institutional investor who didn't get what they wanted from the placing.

I think in the next few weeks we’ll get much better production numbers from C77, as it’ll be on cyclical production with C73.

“Initial production rate on C-77H was > 2 mmscfd and the well can still produce > 0.5 mmsfd albeit not on a sustained basis.”

Will give us better cashflow generation than C73.

Jackpack.. I’ve dropped them a tweet on Twitter, let’s see if they pick up and respond.

Elegance…. All the placee participants would I’m fairly sure have been “taken inside.” Normal practice for any raise.

It would not surprise me if they have been given details on those types of discussions along with other key strategies and maybe even other opportunities.

For them to invest the significant sums they were being asked to and balance risk v reward they’ll have no doubt wanted some more insights on matters.

Jack ….it’s in the Q&A they did with ShareTalk.

https://www.share-talk.com/oilex-ltd-management-team-asxaimoex-qa-update-shareholders-questions/

Not sure if anyone has spotted this in the recent raise RNS - “We are very pleased with the support of existing and new institutional shareholders in the Placing.“

Looks like we have attracted new investors into the company.

And judging by some of large trades today, further serious money is buying stock.

Zag ...best you tell the institutional investor Republic who have just stumped up £1.5m that it's all a con.

Previously in the past C77 was fracced in 4 zones, and not very succesfully. The company believe that only one zone is producing and that the other 3 were unsuccesful.

Under the new method with Schlumberger the company plan to perforate and refrac two new zones, towards the heel of the well. The following changes will take place :

1. the perforations will be over a 5m interval compared to the previous refrac of 15m per zone. This will concentrate the hydraulic energy and enhance the refrac generation.
2. Properly sized ceramic proppant will be used rather than the sand used on the previous refrac.
3. More care will be taken not to over flush the zones.

The existing perforated zones will be isolated with a mill-able plug so that they can regain existing production after the refrac operation.

There has been an immense amount of technical consideration to the up and coming refrac programme, taking into account all the previous failings. I can now see why the company have confirmed a CoS of 75%, and with Schlumberger taking the lead it makes for a compelling potential result.

Going to get very interesting soon.

Espen…. Yes the $60 per barrel condensate is from Roland directly. That’s conservative according to him. So my numbers probably a tad on the light side.

Just a bit of detail on the current production.

C73 is a vertical, un-fracced well and has flow potential upto 0.5mmscfd. We have just seen per the recent RNS it is flowing at 0.3mmscfd. So we may have some more runway as long as wellhead pressure doesn't fall off.

C77 is a horizontal well and has the flow potential of 0.5-0.7 mmscfd. So slightly higher potential than C73. Take a look at my previous post on revenue numbers and C77 has the ability to almost double the revenue currently being produced from C73.

The company are currently planning to co-mingle C73 and C77 and place them on intermittent production, but this does require some skill as the two wells are at different wellhead pressures.

Gas production facilities currently will allow 1mmscfd.

Whilst these numbers in the greater scheme of things are relatively low, they do nonetheless generate cashflow for the company and is allowing the reservoir to produce hydrocarbons after a prolonged period of shut in. Oilex should be commended for what they have managed to achieve in getting these wells back on production.

Monthly production and flow rates are more than likely to be reported to the market.

Our current share price hiatus has been born about by the announcement of the placing and the no doubt nervousness that a certain amount of churn could ensue, if the placees decide to not hold and flip. One thing we cannot be 100% sure of is whether flipping is actually taking place. I have always held the view that it can only be pure speculation as the trades do not come with a holders name attached.

We move ever closer to the commencement of the refrac programme and I would expect to see firmer dates announced in due course. Hopefully in anticipation of this crucial programme for the company we will see positions taken and the share price appreciate in value.

I still firmly hold the view we are massively undervalued and will maintain my view that we should be around at least a £30m market capital, which with the new shares in issue equates to 0.35p.

Some approx numbers for revenue and cash burn.

0.3mmscfd - $2196 per day / $66,795 pm
21 bopd - $1260 per day/ $38,225 pm

Total income approx pm - $105k or £85k

Current operational cash burn is £275k per month as per last quarterly. So the current production revenue is covering 31% approx of the monthly cash burn.

Leaving a shortfall of £190k which will be funded from the new raise.

We know the refrac is $1.8m/£1.43m. So that leaves £1.1m from the raise for working capital plus £1.3m they had already (per last quarterly). Therefore gives them £2.4m of cash working capital approx.

2.4m/190k - gives them approx 12 months of working capital.

Well funded for operational activities and refrac.

Thank you Ztr

Gordon …. 2.5% premium to last nights close. Do the maths. Can’t you just accept that you were also wrong!

Now MrInvestment if I am not mistaken we had a deal that either of us would apologise publicly about the placement price. Now come on be a decent chap. Don’t see 0.16/0.18p ??

Plus the rest of you doubters. Bodes well to listen sometimes to people that know what they are doing.

Did I say that nope. You just love to twist peoples words don’t you? Getting desperate aren’t you?

Anyway I’m off now. Will check in next week, to see if you infatuations with me still continue.

1. Group not secret and you are in it. Somewhat hypocritical.
2. I’ve never said it’s in the public domain. So there you are just lying. Check my previous posts anyone.
3. I’ve never stated I have your email address. Again a lie. However I know Oilex are in touch with LSE and LSE are aware of the scurrilous posts being made about the company regarding the placing price.
4 I have Roland’s email address, as do many other investors.

Not getting very far are you!?

And there you have it ……your last sentence. Are you the gang member on late night watch?

You are also now showing yourself as incredibly embarrassing…..

Because you MrInvestment are not informed, have no clue, have an agenda, work with a crew. Oh and the company have been given your email by LSE, due to your scurrilous posts the other bank holiday weekend, driving an agenda of a placing at 0.18p. When the company hadn’t even commenced the process.

You been found out, called out and have no credibility.

Plus you can’t stand it that certain investors have access to Roland and he speaks to them because he respects them.

Your rhetoric on this board is now embarrassing.

And I will state again, I speak to Roland, I converse via email with Roland and I trust and respect Roland.

Next week you will see.

Who is Oilex most loyal long term funding partner? That might answer some questions for you.