It’s looking ever likely that the fraccing operation is at the very least about to start. The rumour in the city is that fraccing may have begun over the weekend. The rise in the sp this morning is a direct consequence of this. It’s been a long wait for investors in Oilex with the constant ups and downs in value. The well reports (8 in total) were designed by the company to bring some much-needed stability to the sp. It’s to be remembered here that the Gas is already there! “The Cambay-76H well intersected the Y Zone reservoir on prognosis and well log data while drilling indicated porous hydrocarbon-bearing intervals with elevated gas readings throughout the horizontal section.” So it’s not a question of finding gas more of proving up the tech for tight formations. The big rise has already begun. As foretold here.
“The mobilization for the large volume multi-stage fracture stimulation of the horizontal Cambay-76H well has been completed with all equipment now on site and rigged up. In preparing for the start of the fracture stimulation program; a test of all surface equipment has been conducted, mixing of chemicals and loading of proppant and water to tanks is underway and coiled tubing operations are being completed. The fracture stimulation program will comprise eight stages with two fracture initiation points per stage. The well will then be flowed to surface to remove stimulation fluids and clean up the well bore prior to conducting the flow test. The Cambay-76H “proof of concept” horizontal well is evaluating the production potential of the Y Zone interval of the extensive Eocene “tight” reservoirs in the onshore Cambay Production Sharing Contract, Gujarat, India.”
Once the company prove up the production potential then they should rise significantly. However we are in a dreadful situation re’ Global uncertainty spooking all the markets hopefully this will settle once the USA sign-off on the raising of their national debt level.(Political posturing)
They could hit 50p could Oilex but as like all huge rises they tend to drift back and settle once the euphoria dies away. Big gains are being made here by those who kept the faith.