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

To: Steven Taylor who wrote (3920)	8/31/1998 1:25:00 AM
From: Steve	Respond to of 4276

Steven, You put words in my mouth. Sorry, you are wrong, I do not believe what you think I believe. Portable production swabbing is not the end all be all solution which is why it requires a great deal of research to find the appropriate wells. The sales cycle for this piece of oil field equipment is a long one and complex. Three ingredients to make portable production swabbing work: The right wells, The right people and Equipment maintenance. The right wells means that there is a very definite subset of wells appropriate for swabbing. The right people means that properly trained and motivated personnel are extremely important. Equipment maintenance simply means that a minimal amount of daily maintenance of the equipment will prevent downtime. There are swabbers at work today in Texas that have been continuously working for over 2 years without downtime. The reason Oilex failed to achieve better production is that they didn't have the last 2 ingredients without them the Oilex cake didn't bake. I've said this on numerous occasions but no one seemed to listen. My concern is that Saul not abandon portable production swabbing. Oilex has over 600 wells that have had all surface equipment stripped, all tubing removed and electric power lines removed. To re-equip these wells would essentially re-create Xeric Oil. Take a look at Xeric production before Oilex took over the Big Foot leases. These facts pretty much shoot down any theories you may have about portable production swabbing since we know you have no first hand experience and are only idly speculating as an armchair oilman. Perhaps you and Saul should get together you're both not oilmen but you play ones on the internet. Look at the records for operators sometime for individual wells (unavailable from the TRRC) for a picture of pump jack down time for surface and sub-surface maintenance. You'll find a significant amount of downtime and expense with pump jacks. There are other drawbacks as well. But there are advantages for a wide variety of wells where lifting costs are lower per barrel of oil than it would be with portable production swabbing but for the comparison to be valid the wells must first be appropriate for swabbing in the first place. Credibility with you and the others on this board would be a distinct liability and mean the opposite of its definition.