{"id":95928,"title":"Oilex Ltd Management Team (ASX:AIM:OEX) Q&A Update – shareholders questions","publisher":"Share Talk","author":"sharetalk","published":"2022-04-20T13:30:42+00:00","modified":"2022-04-21T09:52:12+00:00","canonical_url":"https://www.share-talk.com/oilex-ltd-management-team-asxaimoex-qa-update-shareholders-questions/","markdown_url":"https://www.share-talk.com/oilex-ltd-management-team-asxaimoex-qa-update-shareholders-questions.md","json_url":"https://www.share-talk.com/oilex-ltd-management-team-asxaimoex-qa-update-shareholders-questions.json","category":"Blogs","categories":["Blogs","Energy","Q&A"],"tags":["Bhandut Field","Cambay","Capture","Carbon","CCS","gas","GSPC","Gujarat","Hub","India","Indonesia","Joe Salomon","JPDA 06-103","LNG","Medway","OEX","oil","Oilex","Oilex Ltd","ONSHORE GUJARAT","Petroleum","Roland Wessel","TIMOR SEA","WEST KAMPAR"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/Stencil-Google-Chrome-2023-04-19-at-2.47.43-PM.jpeg?fit=1231%2C615&quality=89&ssl=1","format":"news","language":"en-GB","content":"Share Talk asked investors for questions we could submit to the Oilex management team on the 12th of April 2022. Today we have received a reply.\n\nThe formate is the way we submitted your questions ( no particular order) with a reply next to each one, may we add the company answered every question we sent to them, thank you. Hopefully, you can see the Q you submitted – is answered.\n\nhttps://twitter.com/Share_Talk/status/1517078347712544769?s=20&t=M_QrgQrgnxhJdolBmLw2rQ\n\n## **Oilex Q&A **\n\n**• Refrac equip update – when starting? **It is currently anticipated to be July 2022.\n\n**• How often are flow rates announced to the market? **Regular updates on Cambay gas flow rates will be issued to the market so investors are up to date on-field performance.\n\n**• Date for next well to drill? **Contingent on results of C-77H re-frac, the current expectation is Q4 2022 / Q1 2023.\n\n**• CCS licence update? **We are waiting on the formal process to commence with NSTA, the regulator.\n\n**• CCS project economics – Revenue/NPV/timelines? **TBA after the full FEED study is completed.\n\n**• JV this year? **A formal Cambay farm-out process is expected to commence after the C-77H re-frac.\n\n**• What’s the current BOE from the Cambay field now it’s switched back on? **TBA when production stabilises. We shall update the market in due course.\n\n**• What are total netbacks after royalties etc if any? **There are no ORRs on Cambay, just GoI royalty.\n\n**• What’s the expected cost of the refrac operation? **$1.8 million, subject to contract.\n\n**• What currency are gas sales being settled in? **USD.\n\n**• What indication of flow can you give us from the Cambay well, just as a ballpark. **TBA when production stabilises, but we would anticipate between 0.5 – 1 mmscfd.\n\n**• Will the refracking definitely begin in July? **July is booked with service providers.\n\n**• Potentially, what revenues could CCS generate for the company? **TBA after the full FEED study is completed.\n\n**• Can you give us a rough timeline for the development of CCS. **We expect full FEED to commence after the CCS licence award; FEED will take c. 9 months. Commissioning would be anticipated 3 years after a Final Investment Decision – so perhaps by 2026?\n\n**• Are we likely to see director buys in Oilex? **A Long Term Incentive Plan payable in shares is under development, subject to shareholder approval.\n\n**• Financially, what incentives are there out there to drive CCS that Oilex can access? **There are various government grants but we are trying to proceed on a purely commercial basis. This will make the economics of the project very robust and not reliant on grants.\n\n**• Have we spoken with interested parties Regarding the development of Cambay? **Yes, some farmees have shown interest.\n\n**• Do we plan more Acquisitions of more depleted fields for CCS? **Yes, we are looking at opportunities in the UK\n\n**• I would be grateful for some technical details around the re-frac; incl. challenges to overcome; thoughts on flow rates; estimated percentage chance of success; what if re-frac fails; next steps if it does. **The Eocene reservoir comprises much younger rocks than unconventional wells in the US and therefore requires a different fraccing method which has been studied extensively by the company. I estimate at a greater than 75% chance of success. If the re-frac is unsuccessful, we will have to review the future of Cambay – probably with a scaled-down field development.\n\n**• What would success look like on all fronts 12 months from now? **A successful C-77H re-frac, a successful new (C-78H) well drilled and on production, a farmout agreement on Cambay, and the award of a CCS licence for the Medway Hub with FEED underway.\n\n**• What is the company’s view on Chance of Success (COS) on the refrac of C77H? **Greater than 75%.\n\n**• How much is the refrac programme costing? **C. $1.8 million, subject to contract.\n\n**• Are the company likely to have to raise further working capital, even with cash flow now being generated from gas/oil sales? **Yes\n\n**• Are the board going to put some skin in the game? Understand options are being considered? **As mentioned above, a Long Term Incentive Plan payable in shares is under development, subject to shareholder approval.\n\n**• When is the likelihood of the new well to be drilled? Quarter 3? **In Q4 2022 / Q1 2023.\n\n**• What’s the difference between the new well to be drilled versus the existing well? **An effective frac stimulation.\n\n**• How is the CCS project likely to be funded? **Through a combination of both debt and equity.\n\n**• Is there access to government funding for the CCS project? **There are various government grants but we are trying to proceed on a purely commercial basis. We are keen to ensure the project moves forward with robust economics.\n\n**Investor Enquiries**\n\nOilex Ltd\n\nRoland Wessel\n\nManaging Director\n\nEmail:[oilex@oilex.com.au](mailto:oilex@oilex.com.au)\n\nTel: +61 8 9485 3200\n\nAustralia"}