JazzT, you may find this recent article interesting
Oilex and its Cambay field is a tight gas play similar to those which have given the US virtual energy independence. India and the Gujarat state (one of the most industrial states in India) are in desperate need of this gas to forfill its much needed expansion plans and address nationwide power shortages.
Oilex has had a frustrating year so far with technical issues hampering its success, however they intend to go back to the drill bit soon to prove up its reserves and begin production via a modular facility which will allow it to expand production rapidly when further wells are developed.
There is execution risk involved here but we believe that the upside far outweighs the downside risks given the demand & supply inbalance in India and the recent technological advances in tight gas plays over the last few years.
Top of the range estimates for Oilex are as high as 1.6TCF and 248mmbls net to Oilex. This strongly hints that Oilex's current valuation accounts for almost none of this. Moreover, in October 2011 four deeper zones at Cambay were estimated to hold an undiscovered total of 12.4TCF GIIP and 11,592MMbo. This is a huge amount of potential GIIP and the current drilling program is looking to shore up some of these figures and value.
Use the recent about turn over foreign investment in India and share price weakness to build a position in Oilex for the impending multi well program. Oilex has other projects also such as stakes in an offshore Australian field and an asset near the small island of Timor Leste where it holds a 10% minority interest, however India is where its true value lies.
+ Early mover advantage
+ Cambay has world-class potential
+ Unmatched commercialization opportunities
+ Attractive fiscal and regulatory regime
+ Near-term production and cash flow potential