Member Info for jpsherwin

You're under selling this, if an amicable agreement can be sought this will in my opinion be more than double.

Look at the facts, assets we have an interest in, discussions on future partners, Operational development on drills etc.

Even if GSPC are successful through arbitration, it doesn't change a thing, we don't lose our 45% interest in what we have, and let's not kid ourselves, what OEX have is incredible.

"A revised geo-mechanics study has been undertaken using a core sample from a recent exploration well and also investigated results from the latter wells that have been drilled on the PSC. This study has produced very positive results confirming the fundamentals, which gives the board the confidence to restart the field program. Obviously, no major expenditure is going to be entered into until the PSC extension is granted. Drilling costs have been found recently to be lower than expected at US$2.5- 3.0 million for a vertical well and US$6 – 7 million for a horizontal well (these costs include fracture stimulation)."

"A lot has been learnt from Baker Hughes’ work on the geomechanical modelling and hydraulic fracture optimisation of the Eocene reservoirs at Cambay. Recommendations on how Oilex should develop the low permeability Eocene formation (EP-IV) Y-Zone in the Cambay Field, highlighted the key issues to be:
 Select an optimum depth interval within which a horizontal well should be placed and perforated to create zone-confined fractures.
 Use a hybrid fluid system - slick water (non-viscous) fluid to initiate and establish a fracture followed by cross-linked gels to place the proppant – to avoid out of zone fracture growth.
 Approximately 150 metres fracture half-length with conductivity of around 250mD- ft should be the target for the treatment.
 Over-flushing the treatment must be avoided in the Y-Z Zone. This has been a major issue of past drilling.
Other recommendations included drilling the pilot hole at least 50 metres below the target reservoir and gathering log data before side tracking the horizontal lateral at the optimum depth within the reservoir. In addition, at least gamma, density and acoustic logs (both compressional and shear) should be acquired to adequately characterise the lithologies, rock properties and stress."

"2018 Programme
The Field Development Programme (FDP) has set out a plan for both the EP-IV and the OS-II reservoir sections. Oilex has a number of wells which represent good workover candidates. In the shallower OS-II reservoir, seven workovers are planned with an estimated cost of $150,000 per workover, which could also be farmed out. This could be good for news flow and would demonstrate that progress has resumed on the ground.
In the EP-IV reservoir, the team has identified 2 workover candidates including the existing C35 well which is a workover candidate with planned fracture stimulation which would be the first trial of the campaign. Currently, Oilex is undertaking due diligence to weigh up the pros and cons of using an existing well, where the results might be compromised. But, such an exercise is relatively cheap in industry terms at US$700,000 and it would provide the team of experts with a dummy run before the costlier programme begins. Such a move might prove invaluable ahead of a drilling 2 stimulated vertical wells with a likely combined budget of US$5.5 million.
As far as timing is concerned, the C-35 re-entry well is expected to undertaken in Q2 2018 followed by two new vertical wells drilled in H2 2018, to confirm the optimal recipe for the frack. With all these wells there will be an initial production test followed by the fracture stimulation and further flow tests to gain understanding on the uplift provided by the stimulation.
Regarding the funding of the drilling program, such is the scale of the opportunity here that we believe that an effective financing strategy would be to farm down its interest. Accordingly, we have assumed the Company’s interest will reduce from the current 45% stake to say 30% in order to attract the right joint venture partner to farm-in in return for funding proposed drilling programme."

Having read most posts on here over the past couple of weeks, there seems to have been some historical figures used when discussion drilling etc.

I came across the following from Align Research, common knowledge I know, thought it worth putting out there again:

"Phased development of the EP-IV
To access multi-TFC gas, Oilex has planned a phased development of the EP-IV program. Depending on the success of the two vertical wells, a horizontal production well may be drilled at an expected cost of US$6.5 million. Baker Hughes’ model suggests that there is an incremental benefit from a fracked horizontal well. The success of the vertical wells will allow the experts to determine whether a horizontal well could deliver a better financial outcome.
Once the company moves into horizontal production drilling with aggregated higher rates of gas production, it is planned to deliver this production into the high-pressure national grid which is 15 kilometers away. The economics of phased development looks to be positive at all stages, with the early single well developments leveraging the existing infrastructure.
The company plans a staged development from 1 mmscfd at present increasing to 12.8 mmscfd by expanding the current facility at a cost of up to US$10 million. Phase 2 will see an increase to 50mmscfd for a cost of approximately US$40 million. Beyond this further expansions are largely linear. Phased expansion of the gas processing facility as production grows would make funding easier. Although the EP-IV is the main focus, there is also an additional phased plan for smaller volume OS-II conventional reservoir."

I will certainly put it to him.

Hi Yoshie,

Apologies, Arbitration is set for the 01st Dec, I was implying this could be settled before this date.

My reasoning behind this lies in the value of the asset with which GSPC are jointly invested. Had they wanted to sever all ties they wouldn’t have met the 2 conditions set out by the court.

Joe S is or was in India this week, Oiliex legal representatives are there, discussions on this matter would in my opinion have taken place, could a resolution be sought to this fiasco, quite possibly. If GSPC have the backing now (financially) gives assurances then this could be resolved, again in my opinion.

Regardless of the outcome (the above being my opinion only) GSPC have to meet 55% of all current and future costs.

What better time for Joe to lay out the drilling strategy, timelines, costs etc. and get them out there in an RNS, it works in our favour. GSPC don't approve, the question will have to be asked, why and just how serious are they!

Not forgetting the rejection by the courts to extend, this was quickly declined, and GSPC moved to ensure the 2 conditions as set by the courts were met.

This coming week will be very interesting, I'm hoping to chat with Mark on Monday as JS was unavailable.

week, I genuinely believe with JS being in India, discussions on (Arbitration) and strategic Operational Planning (2 planned drills) will have been top of the agenda in my opinion. I also believe that If GSPC (it's a big if) as they need funding can give assurances to legal and it's binding we will sort this in the coming days and certainly before the 01st Dec.

They clearly have a backer (met court conditions and have to fund 55% of all current and future costs), they wouldn't go to arbitration knowing they could not do this, it would not sit well, not the topic of discussion for arbitration but would certainly reflect poorly on them.

News next week, I certainly hope so.

Buying.

5 Million yesterday
5 Million today

Not sure what they held prior to this but it gives confidence and supports what they have written

Let’s see what happens, support at this level, fingers crossed we go North.

Went against my own investing strategy and bought more this morning, little impact on my average but you can’t win them all.

Many thanks Addam

addamsrups

I'm mindful you've seen the bad times with this company but having read all your posts, you also see positives in the current BOD and the potential of the business.

If you wouldn't mind as I think it would help a lot of people on here to understand the legecy issues they've had and what the future holds in terms of potential.

Assets v MC again the potential not just on what's in India but others too.

Many thanks Spud.

Spud, where is the information the AR are buying? Twitter? I only ask as if they're it's positive in my opinion.

it's a real shame, the company has so much going for them and this just leaves a bad taste. I want to invest more, lower my average but all the rules of investing are saying enough is enough.

I'll keep researching.

Let's hope they announce something soon, 60% down on paper, it doesn't stack up.

Mitch,

Not all ignored you, some like me just chose to stay the course, I could have sold at 0.60 plus but didn't. Why, because I beleive in my research and I beleive thw company with benifit either way through arbitration.

Not forgetting it is GSPC that have to evidence facts not Oilex to retain their 55% share of this not Oilex.

It goes in their favour they retain their interest however are bound by the terms as set out in the JV which is 55% of all costs.

It doesn't go in their favour it's 100% Oilexs' and fingers crossed, JS has a new JV partner lined up.

The assets far outweight current MC and the SP is significantly lower than it should be.

If I could have seen the future, known how this was going to be played out, of course I would be buying around here and holding 6 million shares as opposed to circa 3.

All the best

https://www.rns-pdf.londonstockexchange.com/rns/8602F_-2018-2-26.pdf

AIM is what it is and all investing here should understand the risk before putting their hard earned cash into any stock.

Oilex has had its fair share of issues, people have lost a lot and I'm sure people have made a lot too.

If research is done, the fundamentals are sound; the board is proactive, transparent and have shareholder value in mind, then the business will do well.

JS cannot influence the market, only positive news can in my opinion. Do others take advantage of this, of course they will and have so it seems.

I keep harping on about the annual report & the report done by Align Research; I recommend reading it and then refer to the presentation from Feb 2018.

I cannot explain the price drop, I myself bought in on research not hype and yet here we are 50% down on my investment but the facts speak for themselves, the MC of the company is significantly undervalued when you look at the assets it has, will the SP reflect this in due course, I genuinely believe it will.

I think Align Research are on the button if not a little conservative, time will tell.

Whether you like them or not, Align Research give a good insight, they have a value target for year end at 1.6 pence.

Sorry Adam, just out on the school run.

0.55 so significantly higher than where we are now but it’s a paperless not financial which I can live with for the short/ medium term.

I see potential here, arbitration doesn’t worry me, it’s a win/ win as I pointed out earlier. JS in India also gives confidence that things are being discussed / agreed for the future, in my opinion of course.