Shares of Oilex (LON: OEX) have jumped over 5% Friday after it told investors it has been awarded a well management contract for the Cambay field development in India, with a consortium comprising Manan Oilfield Services and Bedrock Drilling.
Under the contract, Manan and Bedrock will manage the re-fraccing of an existing well during Q1 2022 and the drilling of two new fracced wells during H2 2022.
The aim of the re-fraccing of the well is to confirm the ability to achieve production rates of 3-5 times the well’s current production volume.
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Try IG with a demo account →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Explore IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Open an IG demo →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Start practising with IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Discover IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Once the re-fraccing of the well is successful, it will be followed by the drilling and fraccing of two new horizontal wells in the second half of 2022 to establish gas sales into the high-pressure grid.
Oilex stated that all plans are subject to securing the necessary funding and the Indian Government’s ratification of the transfer of 55% participating interest from GSPC to Oilex.
Oilex’s CEO, Roland Wessel said: “The award of the PMC contract follows an extensive review of the field development options and an assessment of the technical and operational requirements for the successful development of the extensive EP-IV resources. I am confident that the Manan / Bedrock consortium and Oilex partnership will result in the “unlocking” of the value of the Cambay field.”
Oilex shares are currently priced at 0.217p.
Should you invest in Oilex shares?
Oilex shares are traded on the London stock exchange’s AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Oilex shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
