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.
|06Dec16 07:00||RNS||Expiry of Unlisted Options|
|24Nov16 07:00||RNS||Appendix 3Y J Salomon|
|24Nov16 07:00||RNS||Appendix 3B|
|23Nov16 07:00||RNS||Results of Annual General Meeting 23 November 2016|
|23Nov16 07:00||RNS||Waiver of ASX Listing Rule 10.13.5|
|23Nov16 07:00||RNS||Chairman's Address to Shareholders|
|14Nov16 07:00||RNS||Expiry of Unlisted Options|
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.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
01 Nov 16
Since our last outlook note, Quadrise has begun to supply MSAR for extended LONO sea trials, paving the way for commercial adoption from calendar H217 onwards. In August it signed a memorandum of understanding with clients in the Kingdom of Saudi Arabia (KSA), which is a key enabler for progressing the production-to-combustion pilot there. In October it completed a placing and open offer raising a total of £5.25m (gross). This should enable it to transition comfortably to the commercial phase on successful completion of the LONO and KSA trials.
Dividends reinstated; is it time to turn (more) optimistic?
08 Dec 16
Glencore continues to surprise the markets, earlier with its fast pace of asset disposals and now with the reinstatement of dividends. The following were the key details shared with investors in a meeting held on 1 December 2016: 1/ completed $6.3bn of asset disposals; 2/ reduced net debt (including readily marketable inventories) by $12.5bn over the last 18 months; 3/ reiterated trading’s 2016 EBIT guidance towards the upper end of the $2.5-2.7bn range; 4/ expects healthy annualised 2016 free cash flows – even at Q1 16 commodity price lows; at 2017 forward prices, FCFs are guided to be $6.5bn; 5/ dividends would be reinstated from 2017 – with $1bn to be paid in two equal tranches in H1 and H2; thereafter (i.e. 2018 onwards), $1bn would be a fixed annual dividend payment (banking on the stability of trading’s cash flows) plus a minimum 25% of FCFs from industrial activities. Production guided to grow Source – Investor Presentation December 2016 While copper would be negatively impacted by the end-of-life impact at Alumbera and the Ernest Henry divestment, the output for all other commodities is guided to be higher (in varying degrees).
Raising Target Price to 2,500p per share
01 Nov 16
Royal Dutch reported clean EPS of US$0.35, nearly 50% ahead of consensus. More importantly, cash flow jumped QoQ to US$8.5bn which should go a long way to confirming Shell’s capacity to maintain the current dividend, despite the increase in gearing to 29.2%. Upstream returned to profitability on an underlying basis for the first time since 1Q15. We believe these results confirm our view that Shell’s dividend can and will be maintained at US$0.47 per quarter and we increase our Target Price to 2,500p per share, given further sterling weakness.