Oilex (OEX)

Oilex's share price has fallen from a 12-month high of about $1.30 to a low in February of 19¢. While Oilex did make the transition from explorer to producer in October 2008, the company's flagging share price can in part be attributed to poor execution in terms of delays and capital management. There is no doubt that Oilex has an impressive suite of assets. Oilex has two producing wells in its Cambay oil field in India. Management is targeting sustained long-term production of 3000 barrels of oil a day from Cambay by the end of 2009. Realisation of this goal is significant in terms of the company's future. First, it would provide some of the cash flow required to fund further exploration activity. But more important at this stage is the fact that it would provide some assurance that the company can deliver on its promises in the years to come. The other potential share price catalyst relates to Oilex's low-cost onshore Pendalian field in Indonesia. The company is targeting first oil production in the first half of 2009, moving to 2000 barrels of oil a day by the end of the year.