News: Oilex sees “significantly improved performance” in Cambay 77-H well, page-8

A take from the ADVFN boards today:

red lizard X 9 Oct'14 - 13:33 - 10930 of 10933 1 0
"Oilex - Hold
Oilex provided an update regarding the flowback operations at Cambay-77H. In accordance with the company’s plan for flowback operations, two retrievable bridge plugs were installed for safety barriers, as part of replacement of the frac tree with the standard production tree. However, the first plug did not set properly, leading to stalled operations for 13 days. The recommenced operations (post the recovery and the chemical treatment along with clean up) showed better performance. The company has taken measures to reduce possible blockages in future and is compiling the information for future use. A two-day sample test revealed an oil and water recovery rate of 229 barrels per day and average gas rate of 0.41 million standard cubic feet per day. The stock fell 14.3% in yesterday’s trading session.

Our view:
Despite improved productivity from the Cambay-77H well after recovery operations, the unforeseen operational hindrance has marred Oilex’s timeline adherence capability and its performance. Though we remain optimistic about the well’s capability to produce light crude oil, the uncertainty over the operations gives mixed signals about the company’s prospects. Success of the Cambay-77H well is critical for OEX. In light of this indecision, we would like to wait and watch the operational progress of the company in the near term and hence maintain a Hold rating for now."
(source: Beaufort Securities)


The last para "Our View" pretty much sums up my present outlook (dilemma) - particularly the differentiation between the prospects for 77H and OEXs performance/inability to address in any way the adherence to timelines (and budgets most likely). I am fully aware that it is a pathfinder concept well!

I've project managed heaps of significant projects in my time (though now retired), and there is no way that these sorts of ongoing shenanigans would ever be tolerated.  We've all been there, I'm not the first or last ........ under promise/over deliver.  Plan conservatively, cut yourself some slack wriggle room.  Manage expectations, advise your stake holders well in advance of any possible variations.  Budgets are not just an inconvenient window dressing.  Basic 101 stuff.

I'm sorry fellas, I've eventually been forced to take off my rose tinted (loyal) glasses for a rest and face up to what appears to be a pattern of deteriorating happenstance.