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

To: Ditchdigger who wrote (2279)	1/6/1998 2:05:00 PM
From: Larry Sallee	Read Replies (2) \| Respond to of 4276

Thanks DD- these are the figures ($3 to $6) I have found as I have looked around as well. The wells at Big Foot do not require other exploritory wells and cost to find the locations as we have 65 old wells with production records of 40 to 100+ bbls a day over several years when it was origonally Sun Oil property. So I wouldn't think there needs to be a deduction in value of reserves for these items and everyone pays to lift it at some point but these wells are shallow. Addionally they have great records from the RR commission records from 1963+ or - to date. The new wells coming in at or near original pressures so there is a lot of new information and production to form an opinion on. Right now the costs of lifting are being paid by the land itself as these wells are flowing under pressure (but these are shallow wells anyway)and the costs of finding are next to nothing as they are drilling next to existing wells. These are small wells to a Major Oil Comapny- they need a whole lotmore just to pay the huge overhead, huge losses in exploration etc. I would agree if a Petroleum Engineer had no information on this field and a quick look before the wells were drilled, $3 to $4 might be an an off hand figure and conservitive( he should be). I would think Oilex is now working on getting an informed evaluation based on current information including all the other wells drilled in the same structure by HCM. This Company is next door and have 30 or 40 new wells there drilled over the last two years. Other wells are being drilled at this time and the structures, production and logs are getting pretty well defined if you add up the many wells origonaly there the actual findings and production of the old and new wells and all the ones being drilled by others. I can't think of a better set of infomation to make a statement of reserves than this, but then I am not an expert. I think it is fair to say most evaluations do not have this mass of information to work off and PE's seem to get it close with a lot less- this should be cake IMO:) Recoverable reserve numbers are all up for grabbs as new tech comes on line each month, new methods are redefining old field reserves from Texas to Kansas. I have posted some along the way on this string but there are whole www. pages .gov dedicatied to this transfer of tech to the public sector. Maybe the place to look is publishing as Petroleum Engineering is being totally rewritten and what was safe to say last month is out of date this. That is why I like this area of investment and the cutting edge Tech revolution. Right now the small company has a chance IMHO Larry