At a guess I would not envisage the Canning project as providing...

At a guess I would not envisage the Canning project as providing any recent strength and appreciation in the SP.

I see 3 reasons ;

1. The Magna transaction's failure at the last hurdle has
resulted in OEX regaining the initial 45% interest in the Cambay project as opposed to 30% if the deal had gone through. We gain 50% more of the project but suffer dilution of 15% in issued capital. To my mind, this puts further upside
to OEX's SP IF the flow tests are commercial--we have more of our eggs in the one basket--I think this is good, LT holders have taken the risk and waited for 3 years and several CR's for this second drill to eventuate. I always contended that a 15% share of Cambay for the price being offered was too cheap, especially only a few months from flow testing. If this drill IS not a success we would have had an extra 6 million in the bank, so what--the SP will be hammered and languish for years. If however a success, then the SP should respond accordingly viz a viz 30% v 45% of project. I think the market may have realised that to get an extra 15% at this late stage of the story with success/or failure so close is worth the CURRENT SP appreciating to recognise just this fact.

2. Wire-line logs may be showing something bigger than the initial interpretation of fairly positive results. These INITIAL interpretations were some three weeks ago. Maybe more detailed analysis has improved the picture somewhat both in terms of reservoir quality/thickness and potential flow rates.

3. Been over 2 weeks now since TD reached, cased and cemented and de-mobilisation of rig commenced. Everything appears to be on schedule and fraccing can only be a week or sooner away from commencing. Starting to get close to flow rates {maybe a month away} so punters are taking a position now and willing to hold or accumulate. 2 recent sell downs from 11c to 6c and recently 10c to 7.2c has given those that received shares at 7c in recent CR's the opportunity to flip and move on. Those that bought at the time appear to be holders now and Magnas'70 odd million shares in lieu of 15% of the project should I would think be held by them until flow rates are announced. If they were willing to hand over the extra cash for 15% then they were willing to see it out to the end. I don't see how their strategy would change now. So a lot less selling pressure on the SP until at least the successful completion of fraccing.

GLTAH