Oilex Limited (“Oilex”, “OEX”, “Company”) has made significant progress on several fronts whilst at the same time adjusting to the disappointments of the past two years. The Company is now a different beast, having restructured operations in all of its key project areas in order to reduce costs. We retain our belief in management and the potential of the Company; however, admit that we had forecast for Oilex to be in a stronger position than it currently is.

The Company is now on the brink of completing a farmout and possibly drilling two wells, before the end of the year, that have combined potential of 285 million barrels of recoverable oil. Even at a reduced interest, we estimate a success case could be worth more than 240cps for Oilex.

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