Oilex Ltd was incorporated in Australia. Its operations are based out of five offices - our Perth head office, where geotechnical work, financial management and control are located; two in India focused on operations and government relations; and one in each in Muscat, Oman and Dili, Timor-Leste for field logistic, administration and finance support and government liaison. Currently Oilex's main country of operation for the purposes of AIM Rule 26 is India.

The Company is directing its efforts towards opportunities that have the potential to provide an exceptional return on investment. Our focus remains on searching for exploration and production assets in the prospective hydrocarbon basins of India , Australia - particularly in the Northwest Shelf and in the Timor Sea, and in the countries of Southeast and South Asia and near Middle East around the rim of the Indian Ocean. With eight permits/interests in prospective basins, Oilex has rapidly compiled a significant portfolio of oil and gas acreage that has a well-balanced mix of risk and reward.

Oilex now has interests in three field re-development and exploration projects in India; two exploration permits offshore Australia; one production sharing contract in the Joint Petroleum Development Area between Timor-Leste and Australia; one exploration and production sharing agreement onshore Oman and one production sharing contract onshore Sumatera Indonesia. Oilex is the operator of joint ventures comprising major Indian energy companies in all areas save for Indonesia. In Indonesia Oilex is non operator in a joint venture with an Indonesian company.

Website

http://www.oilex.com.au/index.cfm


Quarterly Report ( 31st October 2012 )

http://tinyurl.com/9ge6tx3

http://www.uwgcapital.com/#/oilex/4574257208

24th April 2013 - 11.24 am


Oilex and its Cambay field is a tight gas play similar to those which have given the US virtual energy independence. India and the Gujarat state (one of the most industrialized states in India) are in desperate need of this gas to forfill its much needed expansion plans and address nationwide power shortages.

Oilex had a frustrating 2012 with technical issues hampering its success, however they intend to go back to the drill bit soon to prove up its reserves and begin production via a modular facility which will allow it to expand production rapidly when further wells are developed.

There is execution risk involved here but we believe that the upside far outweighs the downside risks given the demand & supply inbalance in India and the recent technological advances in tight gas plays over the last few years.

Top of the range estimates for Oilex are as high as 1.6TCF and 248mmbls net to Oilex. This strongly hints that Oilex's current valuation accounts for almost none of this. Moreover, in October 2011 four deeper zones at Cambay were estimated to hold an undiscovered total of 12.4TCF GIIP and 11,592MMbo. This is a huge amount of potential GIIP and the current drilling program is looking to shore up some of these figures and value.

Use the recent about turn over foreign investment in India and share price weakness to build a position in Oilex for the impending multi well program. Oilex has other projects also such as stakes in an offshore Australian field and an asset near the small island of Timor Leste where it holds a 10% minority interest and more recently onshore Canning Basin Western Australia, however India is where its true value lies.

What is tight gas? - Tight gas is natural gas trapped in low permeability sandstone reservoirs. Tight gas reservoirs may produce economically if gas flow towards the well can be encouraged by processes such as hydraulic fracturing.


Tight gas reservoirs form in the same way as their conventional counterparts, the difference being that the rock into which the gas migrates after expulsion from the source has very low permeability. A typical tight gas reservoir has a better recovery factor than a shale gas deposit. Thus the density of recoverable gas per unit of land surface will usually be higher than for shale gas formations, although non-conventional techniques are still necessary for profitable production. Globally, volumes of tight gas are estimated to be between 11,000tcf and 18,000tcf, although low recovery factors, due to limitations in technology, mean that only 700-1,800tcf is currently deemed accessible. However the advances in drilling technology seen over the past few years in shale gas in North Americais are directly transferable to the tight gas fields that Oilex will currently begin drilling.

11/4/13 - Cambay Gas Sales Agreement signed - Gas Sales Agreement signed with an Indian public limited company the agreement covers sales of Cambay-73 gas for two years once all approvals are secured this agreement clearly demonstrates the excellent gas commercialisation opportunities in India. Production from Cambay-73 is expected to commence within two months of all Government approvals and gas sales will commence immediately thereafter. The initial gas volumes may be approximately 200 Mscf per day. In addition to the cash flow from gas sales, the production data from Cambay-73 should provide important data to support the premise of commercial production rates from the X and Y zones in the Eocene. With the drilling program agreed on the 10th which will include one firm horizontal well and four wells in a contingent drilling campaign the formal tendering of drilling rig and other long lead equipment has commenced. It looks like real movement at the field may be about to commence which will surely impact positively on the share price.

19/04/13 - Oilex has increased it's acerage with the additon of a Special Prospecting Authority with Acreage Option (SPA/AO) covering ~11,400 km2 (~2,800,000 acres) in the onshore Canning Basin, Western Australia. Oilex has also submitted bids on two gazettal blocks immediately adjacent to the awarded SPA area. This provides long-term growth optionality and geographical diversity whilst leveraging technical experience and commercial relationships of from Oilex's Indian unconventional energy strategy. The strategic rationale behind the purchase is that it provides a Low-cost, low-risk entry into a premier emerging unconventional basin which has key geological similarities to Oilex’s Indian acreage (thus repeatability). In 2011 EIA reported the Canning Basin has “risked technically recoverable resources ~ 229Tcf”. The field is in close proximity to infrastructure with gas pipelines passing through the SPA to mine sites.

Acting Managing Director Ron Miller said, "Our entry into the Canning Basin with SPA-0055 represents a low-cost, low-risk opportunity for Oilex to secure long-term growth optionality and geographical diversity in a second petroleum basin, without diluting its immediate focus on value delivery from the Cambay Field in India. We see this as a long term positive for shareholders and the share price may see medium term upside from the increasing activity in the area from industry peers as well as the acreages proximity to the mass natural gas markets of Asia especially Korea and Japan.

oil fund

I think oilex is looking a decent punt at these levels with all that is going on this year and the new oz acreage just added could prove an excellent addition for them,i would not be suprised to see an oil major coming in on that as a JV.

I believe they currently have a raw enterprise value of around 6.5p a share, to put things into context and that also ahead of the cambay operations about to start.

Could do very well this imvho

Oil Fund = Proslenes = Grannyboy = Blue Face

Mack R,i think they have five wells funded for this year at cambay and this should be
starting anytime from here.Also worth remembering that since the tech problems on
the 76-h well which held things up they have also discovered a number of "deeper zones"
which has pointed to a far larger resource.

So in summary it is possible for some very nice suprises here IMO

Unlike your other tip New World

http://www.proactiveinvestors.co.uk/companies/news/56310/oilex-shares-up-as-starts-tender-for-cambay-77-well-56310.html


Work has begun on getting a drill rig for Oilex's (LON:OEX Cambay 77 well, onshore India, the firm said.

Shares were lifted over 3% thsi morning after the firm posted its report for the three months to March 31 this year.

Oilex also said a gas sales agreement had been inked for off-spec gas from the Cambay-73 wel and was submitted to the Indian government for endorsement.

During the quarter, three well workovers have been completed at the project, where the company is the operator and has a 40% stake.

Notably, post period end, the company also received approval from the regulatory authorities in India for its work programme and budget activities to the end of March.

"Oilex continues its transition to an unconventional energy producer, focused on projects where the company has first mover advantage to assets with significant tight reservoir potential," the company told investors in the statement.

As at the end of the quarter, the firm had A$5.778 mln in cash.

And Interview with Ron Miller

http://www.proactiveinvestors.co.uk/companies/stocktube/1950/oilex-expecting-to-produce-gas-in-india-in-q4--1950.html

RNS issued today on the Magna deal at Cambay,i like the look of this with two
funded drills on a significant discovery and trading at near all time low :-)




03 October 2013


MAGNA cambay TRANSACTION update



Oilex Ltd (ASX: OEX, AIM: OEX. "Oilex"), refers to its announcement of 9 August 2013 (Announcement) in relation to its agreement (Sale Agreement) with Magna Energy Limited (Magna) whereby Oilex has agreed to sell up to a 15% participating interest in the Cambay Production Sharing Contract (Participating Interest) incorporating its Tight Hydrocarbon Project in Gujarat, India.



Under the Sale Agreement, Magna has the right to acquire:

(a)a 10% Participating Interest for US$4 million (Sale Interest); and

(b)an additional 5% Participating Interest for US$2 million (Option Interest).

Magna has already paid Oilex a US$ 200,000 deposit towards the Sale Interest.



Oilex is pleased to confirm, in satisfaction of a Sale Agreement condition precedent, it has received formal notice from each of the other Cambay joint venture participants that they have elected to waive pre-emption rights existing under the Cambay joint operating agreement.



The only remaining Sale Agreement condition precedent is the receipt of Shareholder Approval, which is scheduled to occur at an Extraordinary General Meeting scheduled for 4 October, 2013.



If Shareholder Approval is granted, Magna will pay Oilex the sum of US$3.8 million within 10 business days, being the balance of monies owing in respect of the Sale Interest. These monies are allocated to be spent on the Cambay-77H Drilling Activities under the Approved Work Program. The transfer of the Sale Interest will still be subject to approval of the Government of India and if this has not been satisfied prior to 1 May 2014 or such other date agreed by the parties, the consideration will be converted into shares in Oilex.



The Cambay-77H well will be the second multistage fracture simulated horizontal well drilled in the Cambay Project and is designed to confirm the applicability of North American technology for the development and production of tight hydrocarbon resources in India.



Magna has thirty days from the date upon which the US$3.8 Million for the Sale Interest is paid to Oilex to elect whether or not to acquire the Option Interest.



For and on behalf of the Board



Ron Miller

Managing Director

I think this could be worth a punt,they have Cairn Energy next door on what
looks an identical play and are throwing off good production numbers.

Oil FUND,you following me about lol !

This one has been off the radar for a while but has so much potential and is
good to see they are finally about to restart Cambay.As you say Cairn are
doing great things just next door in the same source rocks.

Hi Mack,there is an interesting looking chart here nicely timed with pending news flow,every time its hit a low in the past year it always bounces off with strong support.First conformation of that bounce today.

Oil Fund,yes the chart looks good and they have Rns this morning on shareholder
approval for the Magna Energy deal.


RNS Number : 7144P

Oilex Ltd

04 October 2013

4 October 2013

RESULTS OF GENERAL MEETING - FRIDAY 4 OCTOBER 2013

Oilex Ltd ("Oilex" ASX: OEX, AIM: OEX) advises that the resolution detailed below, which was put to the General Meeting of Shareholders held at Celtic Club 48 Ord Street West Perth on 4 October 2013, was passed on a show of hands:

As an Ordinary Resolution

Resolution 1 - Approval of Issue of Shares to Magna - Unwind Provisions

Proxy Voting

In accordance with Section 251AA of the Corporations Act, the proxy votes and number of shares voted were recorded as follows for 86 valid proxies:


INDIVIDUAL PROXIES FOR AGAINST ABSTAIN
-------------------- ----------- ---------- --------
Resolution 1 34,993,954 2,458,826 10,704
-------------------- ----------- ---------- --------


For and on behalf of Oilex Ltd

Robert Ierace

Chief Financial Officer & Company Secretary

Have added more today Mack :-)

Are they going to be drilling the same well or new ones ?

Square Miler,one sidetrack into the previous well and one new one i think.

Thanks Oil Fund

I found this post on another forum today which caught my eye - have to say i agree with the bulk of the posters comments.

-------------------

From Advfn today

"Just looking through the last financial statements i notice that Oilex have no corporate debt and after they get the cash from Magna Energy shortly they will have cash reserves of circa $11m ( plus another $2m if Magna take the additional 5% option at Cambay ) .

As they have a current market cap of only £11m and 392m shares in issue i think they are actually in pretty good shape ahead of the pending program at Cambay and there is alot of value here at this price. When you consider that not that long ago some independent analysts put a net asset value on Cambay of around 30p a share net to Oilex based on the Netherland & Sewel reports,i think it is clear why Oilex have been so careful to get the technical stuff right this time around and taken their time to prepare properly.

Last time around at Cambay they were stalled by a broken milling bit during the clean up and flow test phase of the operation,they subsequently appointed an Independent expert to analyse what went wrong and he has made a number of recommendations to the company which they are following this time around.

The company have said : "Cambay-77H well has been engineered and designed taking into consideration the recommendations of the independent expert. It has a 350 metre lateral section which has been designed with four stages of fracture stimulations, each containing two fracture initiation points for a total of 8 fractures along the length of the lateral section. The fracture stimulations will be undertaken using a "plug and perf" technique also widely used in tight formations in North America. "

"A successful production test will provide the catalyst for a potential pilot development project and provide data which will enable Oilex to increase production and cash flow while confirming the commercial potential of the Cambay "tight" X and Y zone reservoirs. The drilling campaign of three vertical and two horizontal wells and a pilot development project will also provide data to support converting Contingent Resources into Reserves."

Also i was looking through some of the documents issued on Cambay to see what the initial excitement over this asset was,and i found this of interest:


"In October 2011 Netherland, Sewell and Associates Inc. ("NSAI") completed an independent assessment of the Cambay Field "tight" reservoirs. NSAI assessed significant Contingent Resources and Prospective Resources with Unrisked Contingent Resources of 222 billion cubic feet of gas and 37 million barrels of oil from the two uppermost zones of a very thick hydrocarbon bearing section. Promisingly, NSAI also concluded that the deeper zones within the Cambay contract area contain very substantial Prospective Resources, highlighting significant additional potential in a very concentrated area of 161km (40,000 acres). "


So my summary of Oilex is that all in all you get a fair crack at some very decent upside here at this price and would be worth building a stake up here before the drills start turning. "

I came in here today as looks a decent opportunity :-)

PS - I see in the Rns today that they finally removed Mike Malone as COO and
have given Sundeep Bhandari the reigns to work with the JV partner.A solid
management change around in my book as Mr Bhandari has a very solid record
in India including some great success at Cairn India.So a local man who has
done it all before with Cairn including a near identical play in the cambay basin
can only be a fantastic development for oilex as the drills near spud !



( Found this on Oilex website on Mr Bhandari )

Sundeep Bhandari was appointed as Vice Chairman in November 2011. Mr Bhandari, who is based in New Delhi has more than 15 years experience in the energy business. Mr Bhandari has worked with several multinational petroleum companies, including Cairn Energy, Mobil, Marathon, ENI, PGS and Command Petroleum, in advising and developing their businesses in India. He has played a major part in several successful exploration and development projects including the producing Ravva oil and gas fields, Laxmi and Gauri gas fields and Cairn Energy’s Rajasthan oilfields

Interesting article on oilex just out on Proactive investors




Oilex eyes leaps forward on two fronts


October 08 2013, 10:36am


A big two months are coming up for oil and gas explorer Oilex Resources (LON:OEX).

The group expects potentially company-changing developments in both India and Australia, its two key areas of focus.

In Australia, Oilex has applied for two additional licences adjacent to its Canning Basin acreage in Western Australia.

This is in the heart of the burgeoning shale gas industry down under and Oilex says the two gazettal blocks it wants sit in the last undrilled half-Graben in the region.

An announcement is imminent as it lodged its bid in April and the award of licences of this type in Australia takes between six and eight months,

Oilex’s application followed its receipt of a huge tranche of early-stage exploration land in this highly prospective shale gas part of Western Australia.

Chief executive Ron Miller is hopeful of winning both of the new licences.

He said shale activity has really taken off in Australia in the past two years as the oil and gas majors have moved in.

Indeed, there has already been significant interest from companies interested in farming into its block, especially from North America.

Miller said these firms see the Canning Basin as a very attractive proposition compared acreage in the US.

Oilex has already had to put out one announcement stating it is in discussions with a number of groups.

Miller said: “People are interested because if we can get control of the entire plate fairway [the three licences] there is only one seller.”

He adds that some of the talks have already involved a potential farm-in deal that includes the new licences.

Oilex’s strategy for Australia is similar to its plans in India, where the company is attempting to use technology proven in the US shale market to supply the energy hungry country.

Investors familiar with the Oilex story will know the results have been mixed so far, with the very expensive failure of well 76H at its Cambay Field still raw for many.

Miller says he and the management team have gone through in detail an exhaustive independent engineering review of 76H’s problems.

“Can we guarantee that it won’t happen again? No. Are we confident we are doing everything we can to mitigate the risk? Absolutely.

“We’ve replaced a number of key individuals with personnel with a lot of experience of the North American unconventional drilling scene.

“Our drilling manager has over drilled over 300 wells and has worked often [elsewhere] with the operations manager. The pair has transformed our understanding of how we can do it right this time.

“It’s not a resources risk. We are not going to make a discovery, that’s already been done. The buzz will come from overcoming the execution risk associated with the drilling of this well.”

The acid test is fast approaching as Oilex finalises plans to start an offset well next to 76H, 77H, to try to unlock some of 167mln barrels estimated to be contained at Cambay.

If successful, this will transform the perception of Oilex, Miller believes.

“At present, the situation in India is that we have a very substantial contingent resource. These are technically recoverable hydrocarbons in the ground that are discovered and are recoverable.

“But they have not been demonstrated to be economically recoverable as they are dependent on a successful proof of concept well on India.”

A positive result for well 77H, along with a recent vertical well, Cambay 73, will go a long way to towards this proof.

Oilex has also been putting in place the funding for its share of 77H. As well as raising US$3.4mln from shareholders, the company has reduced its 45% stake to 30% through the sale of up to 15% to private equity group Magna for US$6mln in total.

That should raise enough to cover its share of the US$12.8mln cost of 77H with some spare to carry out the basic exploration requirements at its existing licence in the Canning Basin.

“The price Magna is paying is based on where we are rather than where we would like to be,” Miller concedes.

He adds the recent, unprecedented move by the Indian government to raise the base price for gas in the country from US$4.81 to US$8 per mcf also meant it will get the same value out of Cambay, despite having a smaller stake.

Miller says the company has been doing all of the unglamorous part of oil exploring recently such as making sure the paperwork is right and choosing a contractor, but the next few months will mark a change in pace.

“When we have secured a rig [at Cambay] and have our lead items in place, that's when people will start to get excited again.”

Very interesting article,a fair amount of news on its way by look of it !

I'm in!