Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on OILEX LTD. We currently have 5 research reports from 1 professional analysts.
Frequency of research reports
Research reports on
Cambay development jeopardised by funding and partner disputes
12 Nov 15
We downgrade our recommendation on Oilex to Neutral and reduce our TP from 8.3p to 1p following news of a legal challenge presented to Oilex by its main shareholder, Zeta Resources, alleging that Oilex failed to disclose material information prior to its initial investment. Additionally, Oilex’s JV partner in India, GSPC, has notified Oilex that it wishes to alter the approved 2015/16 work programme. There is now material uncertainty regarding the outlook for the development of the company’s core asset in India.
Quarterly report shows impact of fund raise
30 Oct 15
We retain our Buy rating and 8.3p target price following the Oilex quarterly report to end September 2015. The company had almost A$16m cash, with A$9.4m further to be received in November. Oilex appears to be on track to deliver c.300boepd production by the end of December, which will generate more than sufficient cash flows to cover operating costs and G&A. The Cambay-78H and 80H wells are the potentially transformational catalysts, which have the potential to drive production toward 1,300-1,400boepd.
Oil & Gas - A turning point for the E&P sector
28 Oct 15
We suggest that, following 4½ years of underperformance, the E&P sector is set for a sharp recovery relative to the market. We think that this will be driven by a dramatic reversal in E&P margins, as a recovery in oil prices coincides with reductions in upstream costs, similar to what happened in 2003/04 (following the consolidation of the majors) and 2009/10 (post the financial crisis). We focus our stock recommendations on our corporate clients – Andes Energia, Nighthawk Energy and Oilex - but acknowledge that the entire sector should participate in the recovery.
Indian site visit
18 Sep 15
We reiterate our Buy rating and increase our target price for Oilex to 8.3p following our recent site visit to India. We were impressed with the quality of operations and the calibre, professionalism and experience of the senior management team based in India. The next 12 months is set to be a busy period for Oilex, with two firm horizontal, multi-frac wells and five workover wells scheduled. We expect the company to grow production to roughly 1,400boepd net over the course of the next 12-15 months.
Fund raise approved
12 Aug 15
Via the successful Cambay-77H well, Oilex has proven its ability to flow gas at commercial rates from the tight gas zones in the Cambay basin, in a region where gas demand significantly exceeds supply. It is partnered with the owner of the regional gas transmission and distribution network and is now fully funded for its approved 2015/16 work programme. We reiterate our Buy rating and increase our target price from 7.5p to 7.8p.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Opuama production restarts
21 Feb 17
Eland has confirmed the successful restart of exports from OML 40 through the new shipping alternative that it has implemented. Sales from the export terminal are expected imminently, re-establishing cash generation for Eland. Cash at YE16 was US$11.1m which has since reduced to US$5.9m, mainly reflecting initial operating expenses for the shipping alternative. While it is early days, Eland has demonstrated its ability to restart exports and production from OML 40 following the shut-down of the Forcados terminal a year ago. Production to date is averaging around 7kbd and we expect that to ramp up as Opuama operational performance improves. At US$55/bbl Brent, we estimate Eland is generating a net cash margin of around US$25/bbl. We reiterate our Buy recommendation and 95p per share Target Price.
Small Cap Breakfast
24 Feb 17
GBGI—Schedule One update from integrated provider of international benefits insurance. Raising £32m at 150p. Admission expected tomorrow. Anglo African Oil & Gas— Admission expected early March. Acquiring stake in producing near offshore field in the Republic of the Congo. Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb.
Operating update and shareholder activism
15 Feb 17
December and January have seen the emergence of shareholder activism at Bowleven (BLVN), bringing its strategy and management into greater focus. Its largest shareholder (Crown Ocean Capital, COC) evolved from being a supportive shareholder to voting against a number of resolutions at the December AGM, to recently calling for the widespread removal of the board and a radically different company structure. Operationally, the company reports that a new development concept is under review by the stakeholders in Etinde, where production would be piped to existing gas processing facilities in Equatorial Guinea. Such a solution would (if approved) require significantly less capex and could be brought online relatively quickly vs other solutions (fertiliser, FLNG, gas to power). We leave our valuation largely unchanged, save for a revision to cash holding to reflect the recent operational update. Our new core NAV is 49p/share.