History being made in the Cambay..., page-26

These were the words of comfort from Ambrian, Oilex's house broker in the UK, around two and a half months ago.  Worth repeating I reckon.

RFC Ambrian estimates that Oilex (LON:OEX) should carry out a meaningful flow test at its Cambay-77H well in India over the next six to ten weeks.

The broker notes the one million cubic feet per day (cfpd) initial production rate  of the nearby hydro-fractured Cambay-73 well, and says Cambay-77H could have an initial production rate of anywhere between 3-5mln cfpd, by its estimation.

“Our modelling suggests that anything above 3MMcfpd is likely to be commercial  at the current budgeted well cost (US$13.2mln).

If well costs can be brought down to US$10mln in a full field development, we estimate that the commerciality threshold is even lower (around 2.3MMcfpd).

The shares are currently trading at around 6.75p, up 0.4p on the day, still some way short of RFC Ambrian’s valuation of 15.3p after the broker doubled its fair value estimate from 7.7p.

http://www.*.co.uk/columns/broker-s...perial-tobacco-orosur-mining-oilex-16613.html