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

To: CHRISTINE who wrote (3689)	7/12/1998 9:26:00 PM
From: CHRISTINE	Read Replies (1) \| Respond to of 4276

To all, more from Califtalk and his visit to Houston. From Mr. Yarmak The three new in field wells at Big Foot are completed and paid in full and producing oil and will continue producing for many years and have proved the oil is in the ground found at shallow depths in commercial quantities.The three wells are also producing gas which is being sold and the gas pressure in the wells in the Big Foot field assists in the production of oil and would allow many of the wells to be swabbed at least twice per day if the manpower and equipment was in place. The field was tested and proven at both the east and west boundaries. That the swabbing units when put into operation are proven to generate a profit . That the two units in operation at the beginning of Jan 1997 were shown to be instrumental at producing oil at a lifting price that permitted profitability when oil was selling at low prices. (Lifting experience proved estimates at $5 to $6 per barrel) The company needs to put more swabbing units into operation to increase production. During the last 12 months the company has completed the process of entering and preparing over 400 existing wells to be in position to do swabbing. This will allow production of at least 2,000 barrels per day based on an average of 5 barrels per day per well. Daily field management at the four oil fields has to be improved to reach this goal. The company now lacks proper daily field management and production is at a minimum. Only 4 swabbers are in operation at the present time, located (ONE) in each of the four producing oil fields worked by 5 employees (one old style swabber requires 2 employees) When an employee is ill or goes on vacation the production from that swabber ceases. The newer swabbers are capable of servicing between 24 to 32 wells in an 8 hour day dependent on distance between wells.( 3 or 4 wells per hour). The older swabber serviced by two men can service 5 wells in 2 hours (or 2 1/2 wells per hour). At present production is at only one half of potential as as result of illness, vacation, and lack of proper supervision. Two swabbers are awaiting maintenance at the TANC (PWRX) factory and have been out of production for an extended time. The company needs TEN swabbers to service the existing fields.The company needs to have field workers in place to keep the swabbers working daily to reach the target of 2.000 barrels per day. The Oilex company has four producing oil fields acquired by the deal making abilities of its consultant, Alan Burditt. The four fields are positioned to generate profits using the swabber method of oil production. In addition the possibilities of in field drilling when the price of oil reaches higher prices. Two of the fields are located in the San Antonio area, the Liling field to the north, on 3,000 acres with 209 wells at a depth of approx 2,500 feet; and the Big Foot field to the south, on 2,000 acres with 57 wells at a depth of 3.000 feet; and two of the fields are located in the Midland and Odessa area, the Revilo field to the north. on 5,500 acres with 127 wells at a depth of 2,700 feet; and the Walker Queen field to the south, on 3,000 acres with 125 wells at a depth of 2,000 feet. The estimates of recoverable oil exceeds 23 million barrels per petroleum engineer reports. Putting a minimum value of oil in the ground at $1 per barrel (profit potential) provides estimates and guide lines for the profit potential for Oilex over an extended period of time when the oil fields are operated by competent field management. In addition, Oilex holds 1/2 percent royalty rights in Queensland, Australia, that were purchased for 2 million shares of OLEX (pre reverse) that have now been adjusted to 100,000 shares (post reverse split). This covers 35,919,933 acres over 13 producing concessions. The seller was Australian Grazing and Pastorial PTY,Ltd, who holds todate the 100,000 shares of Oilex shares (adjusted from 2 million shares pre reverse split) Plus non producing investments in the White River Dome field in Rio Blanco County, Colorado on 11,545 acres; and on 83,500 acres in Pocahontas and Greenbrier Counties in West Virginia, that were to be developed by Xeric Oil Company and provide Oilex with royalty rights and potential income. (12% Royalty interest in West Virginia and 3% royalty interest in White River Dome in Colorado) Xeric Oil Company has not started the development and the rights can be lost if Xeric (or Oilex) fails to proceed. Xeric Oil received the rights to both the Colorado acres and the West Virginia acres as part of the sale of the Walker Queen oil field and the Revilo oil fields to Oilex. The oil fields in Jefferson County ( Half Circle) 151 acres at 9,000 foot potential , and Jackson Counties (Caraneahua Creek) 574 acres at 9,800 foot potential, both acquired from Phoenix Resources in exchange for shares of Olex were lost when the company did not have the capital to develop and operate the fields, and did not find a partner to proceed in development of the fields