--- 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" date: 2022-04-20 canonical: "https://www.share-talk.com/oilex-ltd-management-team-asxaimoex-qa-update-shareholders-questions/" 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"] 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" --- # Oilex Ltd Management Team (ASX:AIM:OEX) Q&A Update – shareholders questions **Published:** April 20, 2022 **Author:** sharetalk **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) --- 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. The 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. https://twitter.com/Share_Talk/status/1517078347712544769?s=20&t=M_QrgQrgnxhJdolBmLw2rQ ## **Oilex Q&A ** **• Refrac equip update – when starting? **It is currently anticipated to be July 2022. **• 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. **• Date for next well to drill? **Contingent on results of C-77H re-frac, the current expectation is Q4 2022 / Q1 2023. **• CCS licence update? **We are waiting on the formal process to commence with NSTA, the regulator. **• CCS project economics – Revenue/NPV/timelines? **TBA after the full FEED study is completed. **• JV this year? **A formal Cambay farm-out process is expected to commence after the C-77H re-frac. **• 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. **• What are total netbacks after royalties etc if any? **There are no ORRs on Cambay, just GoI royalty. **• What’s the expected cost of the refrac operation? **$1.8 million, subject to contract. **• What currency are gas sales being settled in? **USD. **• 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. **• Will the refracking definitely begin in July? **July is booked with service providers. **• Potentially, what revenues could CCS generate for the company? **TBA after the full FEED study is completed. **• 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? **• Are we likely to see director buys in Oilex? **A Long Term Incentive Plan payable in shares is under development, subject to shareholder approval. **• 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. **• Have we spoken with interested parties Regarding the development of Cambay? **Yes, some farmees have shown interest. **• Do we plan more Acquisitions of more depleted fields for CCS? **Yes, we are looking at opportunities in the UK **• 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. **• 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. **• What is the company’s view on Chance of Success (COS) on the refrac of C77H? **Greater than 75%. **• How much is the refrac programme costing? **C. $1.8 million, subject to contract. **• Are the company likely to have to raise further working capital, even with cash flow now being generated from gas/oil sales? **Yes **• 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. **• When is the likelihood of the new well to be drilled? Quarter 3? **In Q4 2022 / Q1 2023. **• What’s the difference between the new well to be drilled versus the existing well? **An effective frac stimulation. **• How is the CCS project likely to be funded? **Through a combination of both debt and equity. **• 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. **Investor Enquiries** Oilex Ltd Roland Wessel Managing Director Email:[oilex@oilex.com.au](mailto:oilex@oilex.com.au) Tel: +61 8 9485 3200 Australia --- **Original URL:** https://www.share-talk.com/oilex-ltd-management-team-asxaimoex-qa-update-shareholders-questions/ *Created by [WP Markdown Endpoint](https://wpmarkdownendpoint.com/)*