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Microcap & Penny Stocks : OILEX (OLEX) -- Ignore unavailable to you. Want to Upgrade?

To: Ajay who wrote (1860)	12/9/1997 9:04:00 PM
From: Larry Sallee	Respond to of 4276

First test well at Ueleven in Australia vicpet.com.au Victoria Petroleum has a 45% option to participate- well was drilled 1189 metres to TD with no shows in the Hutton Sandstone ( no oil). Anyway this is on one of the Olex royalty properties and a wildcat try by Lakes Oil. I don't know if they have plans for another yet,maybe they will think over for a while- the rig has been moved to try for gas just North of some other Oilex royalty property. One nice thing about having royalty property is that you gain when things go good but no loss if not. Larry

To: Ajay who wrote (1860)	12/9/1997 11:09:00 PM
From: OFW	Read Replies (1) \| Respond to of 4276

Ajay: Could you enlighten us as to the meaning of the following statement from your last post: "BTW, Prudent Investor, I'm wondering where you are getting your numbers. Please everyone, check this for yourself - call the company or read it carefully. I'm afraid that Prudent Investor may have a personal grudge that goes beyond just a drop in price. Am I correct on that P.I.??" I think if you are questioning P.I.'s motives in his post, you owe it to the rest of us to enlighten us with details instead of making vague statements meant to discredit someone. Offie

To: Ajay who wrote (1860)	12/10/1997 1:12:00 AM
From: Eric Maggard	Read Replies (1) \| Respond to of 4276

Ajay, You are fairly new here. Prudent Investor has been around here off and on for awhile now. I remember when he asked some tough questions of management and they wouldn't answer him. At that point he never invested. He has done some good DD and I respect his position. I can't speak for him, but I wouldn't question his motives. Ray Dirks report: That was May. They (the management) also stated that they expected to have the run rate at 1000 Barrels/day after the 1st Q. That came and went. This has been brought up before, but the business plan of OLEX from a year ago was to buy lower producing wells that had a good amount of recoverable oil still in them. Recharge and clean the wells with that KH-30 or whatever it is and then "swab" out the oil with their portable units. The cost of retreving the oil was supposed to be around $2.5/barrel if I remember right. The things that where holding them back were the number of swabbers, breakdowns, and cleaning the wells. Now, they have to redrill them or drill other wells to get the oil out. That was not their original business plan. To me this is worse and I will explain why. When I started investing in this company, they only had about 8 Mil shares outstanding and the price was about .75 to 1.00. They did a bunch of acquistions and that increased the number to about 25 million if I remember right. They need some more money to get production up (that was in Feb of this year, again if I remember right) and the management put up 1.5 mil and got in return about 3 mil shares. (i am going off the top of my head and can't verify the numbers, but that is about what i remember) Then they make some more purchases and give out some more shares to counselors or whatever. Now the outstanding shares are in the mid to upper 30 mil shares and they need to spend a lot more money to get new wells drilled. The stock is sitting at 10 cents. They would need to give out a lot of new shares to fund the wells or get a loan from someone. I personally don't think that they could get a big enough loan, and so they would need to dilute the stock with more shares. So, there are many more shares than there were a year ago, not much more production, and high cost of drilling new wells. Maybe for the long future they have a chance, but in the next year or two they are going to have some hard times. IMO, I think the future looks worse, and that is why I am not invested anymore. You could do what you want, but IMO smart money doesn't chase a company like this down. You would be throwing good money after bad, IMO. I don't subscribe to the averaging down theory. If its a bad investment I get out. I am solely invested in Small caps that are listed on the NASDAQ Small Cap market and off the BBs. There are many good stocks that could bring as much or more reward for less risk than these stocks. Good luck, Eric P.S. About the full reporting. They were full reporting last fall too. I didn't see any 10Q's during the year however.