Jokermon, you should change this post to "excellent news but the UP- ramping continues". Gotta hand it
to you though, you are persistent.
Do you have any idea what a "contingent" resource is?
" Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies.
Contingent resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where evaluation of the accumulation is insufficient to clearly assess commerciality. The part in bold, accurately reflects Oilex's situation. 76H
didn't do it, 77H didn't do it, unless you call 60 000 boe over 3 years "commercial".
Your statement ;
" The economics are there - so it is now a question of financing the drilling campaign and drilling dozens of wells.
Assuming the economics are correct.." Yes, assuming, a lot of that going on at Oilex over the years. Financing
the current drilling campaign???? From whom? Banks wouldn't touch it with a barge-pole. Reserves are
something you can put in the bank and borrow against, not contingent resources. Future funding will have
to come via the market or a JV who is willing to finance it, at obviously a very sweet deal for them.
"As I see it even if you have little money but you have two valuable assets (Cambay and Canning) you can always get finance - others will disagree of course."
Valuable? Canning is years away from any inherent value being ascribed to it and that value will only be
realised by the amount of $ a JV will commit to it and Oilex's % share of that commitment that it receives.
I wouldn't be holding my breath on that "asset", particularly in this environment & of course it IS an
unconventional play. Let's see how many unconventional oilers {with proven fields & techniques} in the
US last if oil remains at $50-60 longer term.
Cambay? I remain optimistic for this field, but until some sort of reserves can be booked, then it's
"value" remains subjective and in my opinion negligible.
I really hope that Magna take over this asset and get to eventually exploit it's potential.
GLTAH
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