oilex ipo repost

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    Strewth, there are a lot of posts here & things get buried quickly. I posted this Friday, so I thought I'd post again for those that may have missed it.

    cheers,

    ned

    I'm very keen on the Oilex IPO. Up front, this is a SPEC PUNT, but imho, a pretty good punt. I like management & their plans to keep share numbers to a minimum, as well as cash burn to a minimum. So they have farmed out the first 5 wells, but because of the low cap, we still have super leverage. Plus the MD is taking all his first year’s salary in shares at IPO price (20c) and has them escrowed for 2 years. That’s confidence.

    The first 2 wells have seen oil columns found many years ago that were not successful with later drilling. Modern seismics & techniques give very high confidence level, that we have commercial finds in both.
    First one is worth 55cps to Oilex, the second 46cps.
    There are 3 others to follow. Then we have the elephant (for Oilex). Small by other standards at Barcoo Junction North 36mmbbls if filled to spill point, it's worth well over $10/share to oilex, as they retain 88% and have so few shares out.

    Obviously anything with that kind of reward ratio, has a HUGE RISK. So I'm not suggesting selling the house or the kids. If it hits, you won't need many. So for those ONLY WITH A HIGH RISK PROFILE, the minimum $2,000 at 20c, seems like a decent punt.

    I should disclose that I went in (small), at the riskier pre IPO seed stage at 8c. Plus I have applied for a couple of more SMALL lots in the IPO.

    If anyone is interested, I have a 3 page note on Oilex. e-mail me at

    [email protected]

    The prospectus can be viewed at www.oilex.com.au, however, you also need to fill in an online form to receive a hard copy, as that's the only way you can obtain the application forms. It takes a few days, so if interested, I'd send away ASAP. There are only 15m shares in the IPO & total after IPO will only be 32.65m, so it probably will close early. However, I have confirmed that it's first come first served. They won't be scaling anyone back. They are just filling it as applications come in.

    This one is definitely

    CAVEAT EMPTOR.

    cheers,

    ned, who will visit a bit more often after seeing quality posts like jocam9’s on junior oilers.
 
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