welcome to the day traders!, page-41

i sent an email to the company with some questions a while ago, ill post the transcript to hopefully clear things up.
management have been more then helpful in responding to questions. hopefully this may answer some queries and save 30+ people emailing them with the same question

I understand this is a “tight” hole, though how does a shareholder quantify the value released from the agreement with shell? Will there be an update from Octanex when the drilling is complete with more details? And in the event of a discovery mentioning net hydrocarbon interceptions. Or will there just be a discovery payment in 6 months time.

This is a fair set of questions and I think the market attributes no real value at present to Octanex’s agreements with Shell and to the Palta well. Shell is aware that once a significant event occurs, whether that be some form of discovery or no discovery, that information needs to be advised to Octanex. We rely on the terms of the agreement with Shell in relation to the need and timing of them providing Octanex with significant information. In the event of a discovery triggering a payment, this would be advised at the time and not await the actual payment.


Is the tight hole status and lack of information only because of it’s location to the Ningaloo reef? IE will there be greater transparency with future prospects and drills?

No, Shell will attribute an effective tight hole status to everything they do and Octanex releases information when it comes to hand.

The last one is a quandary for me, i like to roughly calculate value or possible future value to permits. but with absolutely no information about leads, prospects, targets i can not attribute anything to this shell agreement.

Saying that i do understand that it was a great deal, the initial capital received and not having to contribute anything to the ongoing exploration on any of the 3 permits, saves a ton a capital, while offering large upside. (based on the feeling that shell cant viably target small reservoirs.