News

February 04, 2009

Oilex Achieves First Production From India and Envisages a Positive Cash Flow Situation

The London and ASX quoted Oilex Ltd had a very busy year in 2008 exploring and developing assets on various fronts. This costs money and as the oil price dropped (as did the group’s share price) Oilex started to look for economies. The company raised the equivalent of US$10 million through a share issue. In Q4 2008 Oilex sold its 8 per cent stake in Bow Valley. It also farmed down its interests in non-core assets. Its stake in Australia’s WA 388P block was reduced from 20 per cent to 14 per cent in November 2008; the same now seems on the cards for some of its acreage in the Joint Petroleum Development Area (JPDA).

The really positive news, however, is that Oilex Managing  Director Dr Bruce McCarthy has been as good as his word and achieved first production. With a fair wind and a phased introduction of new wells, Oilex can envisage, in the forseeable future, generating sufficient revenue so that expenditure can be funded from cash flow.

The company has announced that oil production from the cornerstone Cambay Oil field redevelopment started in October last and Oilex is producing from two...