I note that "Catalyst Hunter" has a write up on Oilex released today.
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COMPANY NAME:
Oilex
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STOCK CODE:
OEX (AIM
ASX)
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CATALYST TYPE:
Drilling Gas Production Wells
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CATALYST TIMEFRAME:
Next Quarter
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Price Catalyst Alert: 2 x Production Wells Imminent
The Upcoming Share Price Catalyst:A first mover in the large domestic energy market of India, Oilex (AIM
ASX: OEX) is set to drill two gas production wells in the near term.The company is currently trading at a discount to its peers with 2P gas reserves – but this may soon be about to change.The current discount on OEX is likely due to perceived country risk of operating in India - As OEX’s production wells come online, this risk should be eliminated.At the same time, the company is also likely to go cash flow positive.All of the above spells potential for a re-rate of the company in the near term.The Timing:Long lead time items for the production wells are being procured now, and the wells are due to be spudded next quarter.The market:The fourth largest energy consumer in the world, India currently imports significant amounts of LNG. OEX will therefore achieve a price premium for the gas they sell, with strong operating margins. Given the near term for OEX will see two production wells drilled, country risk eliminated, and cash flow positivity, OEX certainly fits in with the catalysthunter.com requirements:A stock close to a share price catalyst that could potentially initiate a share price movement.Read on for some more in depth information about OEX:[/LEFT]
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OEX Price at posting:
4.0¢ Sentiment: None Disclosure: Not Held
