To all,
This is what I got from speaking with Allen Burditt ...
500,000 common shares (2 year restricted) were paid for the 28 Xeric wells.
Revilo well that swabbed 60-65 barrels each time is 60-65 barrels PER DAY. They swabb it 4 times a week. They plan to put a permanent pump on that particular well since it is producing so much. This means production will be around the clock.
Mr. Burditt did not want to estimate the number of barrels from any
well before the oil actually come out of the ground, since every well
is different.
At least 80 of 107 wells in Revilo Unit that was acquired before have tested successfully in terms of commercial production. Oilex is planning to swabb from these wells and all of those in Walker Queen Fields soon.
There are 57 wells in Big Foot, 135 wells in Revilo (including the newly acquired 28), and between 100-170 wells in Walker Queens Field.
On Bledeger Lease, there are 16 wells that are in production 7 days a week with a total of 100 barrels per day.
Currently there are 15-18 field personnels with hiring of 6 more in the near future.
Current total daily production is 200 barrels per day, however, that number is increasing daily. The near term production expectation is 600-1000 barrels per day.
Oil from Revilo and Big Foot are being sold at $22.75/barrel. (from another conversation with Tom Goolsby revealed that the cost of production with these swabbing machines is less than $3).
ORSI, since it has 25% stake in Revilo Unit, will provide minimum of 3 machines in that field. This means that if daily production is greater than 150 barrels, then they will provide 1 more machine with every 50 additional barrels. Hence a win-win situation for both company.
ORSI has sold machines to other companies, and this machine has been around for the past 3 years. ORSI also is increasing the sales of the machine. some 12 machines are going to be sold later this month. they expect to sell between 50-100 machines by next year at the price of about $350,000 while OLEX will get them at a substantially cheaper price.
Another thing, Mr. Burditt felt that the 3% royalty at west virginia
has extremely great potentials.
Next 10SB will be some 300 pages. earning report will only be out end of this quarter since they are not a reporting company.
There are about 23 million shares outstanding with about 5 million shares in float.
Mr. Allen Burditt owns 1,200,000 shares and will pick up another 300,000 shares soon. He is really excited about the company, stated that the production is going up fast, the company is financially and legally very clean (no law suits). Further, he mentioned that the company is in the process of talking with two investment companies in NY and one of them will be doing a write up on OLEX. The president of the company owns about 3 million shares, while the total shares of the rest of the management is about 1 million. Mr. Burditt has known Mr. Oliver Timmins (president) for more than 20 years and that he is the god father of Mr. Timmins kids.
Olex will actively update its email and internet connection soon.
In a separate conversation with Mr. Tom Goolsby, he stated that it takes 1 person 8 minutes to setup the mobile swabbing machine.
ok, I think this is as long as the press release of the company! :) Personnaly I am more optimistic about the company about the conversation with Mr. Burditt. The increase in production, the low cost of retrieval, the alliance with ORSI and getting some of its profit, the additional acquisition today which is more than 1,000,000 barrrels estimated, the huge reserve which is estimated at 24,000,000 barrels, a competent management( I think Mr. Burditt was very professional and knows what he is doing), and a possible connection with investment companies all point to a very positive outlook. I think I will buy more tomorrow and will feel pretty safe about my money. After all, the resistance at .75 has been broken and we should be on our way to the next resistance leve, which is $1. But, I am hopeful that the proper valuation is beyond that point.
Oh, I have tried to get these info down as accurate as possible, and I will not be responsible for any information that I have stated here. Do your own DD and you will feel better about you money.
Good luck investing everyone, and hopefully I will be able to finance my Harvard tuition with a successful OLEX!
Nanlin |
