##{"id":63136,"date":"2014-02-12T10:53:36","date_gmt":"2014-02-11T23:53:36","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2014\/02\/12\/treasure-chest-oilex-could-re-rate-significantly\/"},"modified":"2014-02-12T10:53:36","modified_gmt":"2014-02-11T23:53:36","slug":"treasure-chest-oilex-could-re-rate-significantly","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2014\/02\/12\/treasure-chest-oilex-could-re-rate-significantly\/","title":{"rendered":"Treasure Chest: Oilex Could Re-Rate, Significantly"},"content":{"rendered":"By Greg Peel<\/p>\n
Oilex ((OEX)) plans to spud the high impact Cambay-77H well between 22 February and 9 March. The aim of the Cambay-77H will be to provide proof of concept and commerciality of the Cambay project in the Indian state of Gujurat. Stockbroker DJ Carmichael believes the drilling of the Cambay-77H well will be a material catalyst for Oilex.<\/p>\n
In a success case, Cambay-77H could materially re-rate the company by delivering near term production and converting some 30% of Oilex’s current 2C resources into reserves, the broker suggests. DJC’s estimated value upside on a commercial flow-rate for the well is in the order of 15 cents per share. (Last trade 9c).<\/p>\n
Oilex has now received the balance of US$3.8m from India’s Magna Energy for the sale of a 10% participating interest in the Cambay Production Sharing Contract, and Magna has exercised its option over a further 5% to the value of US$2m. Oilex retains a 30% interest.<\/p>\n
The additional US$2m will bring to US$9.2m Oilex’ cash balance. The current gross cost estimate for the Cambay-77H is US$12.8m, implying US$5.8m for Oilex’ share. Oilex has also secured a 7.5m pound equity financing facility with Darwin Strategic Ltd, the broker notes, providing contingency for potential cost overruns.<\/p>\n
DJ Carmichael has a Speculative Buy (High Risk) rating on the stock.
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Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"FNArena’s Treasure Chest reports on money making ideas from stockbrokers and other experts. DJ Carmichael is confident Oilex’ drilling plans could result in success that would be a game changer in share price terms.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[17],"tags":[24],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/63136"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=63136"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/63136\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=63136"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=63136"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=63136"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}