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Microcap & Penny Stocks : OILEX (OLEX)

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To: Ditchdigger who wrote (2240)	1/3/1998 2:26:00 PM
From: Larry Sallee	Read Replies (2) of 4276

Dichdigger, it is just a thought but I think the days of Reg S are over for Oilex. My reasoning is a simple one and may not help you at all but there are some facts as I see them- Oilex has drilled 4 wells at Big Foot- the first was choked as usual to prevent collapsing the bottom just opened up by fracturing>>> but it still produced 96 bbrls a day- My understanding is that you open up slowly and keep everything open untill you reach a balance between choking the flow untill it backs up and letting it flow- finding optmim flow assureing a long life of the well at maximum production. I understand that over time this well will lower the virgin pressure and production will slow a bit but we don't even have the open flow figures yet and they must be above 96 bbrls a day on well #1 so I would think it is safe to say we would have at least one year at 100 bbrls a day if not ten years. Now if all four wells produce at this level with little cost to get out of the ground (as the oil is under pressure and flowing like a spring)-- lets look at some dollars - 400bbrls X $18( or $17 to be conservative I think)X355days ( give a few days to mess around in the well) you have a calculator what does it add up to??$$??- oh yes remember there is a 3 million tax right off setting there to boot. Now these wells are drilled- we know 2 are flowing and the other two waiting ( or already done) to perferate and fracture. I would humbly suggest of you really want to do some research on Oilex and be a little more ahead of the game you might go back and look at what the Engineering Firm Ultra Engineering had to say about estimated proven reserves and remember we have new oil to add to them and firm up what was estimated as now we have wells to prove out most of the field. I believe we will see a big jump in the proven reserves- proven because Oilex is now are actually bringing it up into the pipe and on to the tank. Now I can't tell you when or if they are going to sell one drop( or hiss of gas) but it would seem to be in everyone's interest if they do. Please remember the Texas RR Commission is very interested that they do as they get a cut and Texas sure dosen't miss many opertunities to rake in the cash. So we now have three numbers: estimated proven( sounds like an oximoron) proven and above ground. To help you, the origonal figures posted were: 5.3 million bbrls of oil and 2.5 Bcuft gas. And don't let the production from the stripping of the other 63 wells there go by- they will bring on at lest a respectable number to add to the overall numbers. IMHO Larry

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