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What: Shares in Oilex (LSE: OEX) lifted by more than 14% in early trade this morning following the release of the oil and gas exploration and production company‘s quarterly report.
So what: Net oil production more than doubled from the first quarter, to 665 barrels (Q1: 244 barrels). 355 of these came from the Cambay field in the Indian state of Gujarat, while 310 barrels came from the Sabarmati field, also in Gujarat.
Oilex also stated that it has made an insurance claim worth USD$1m, associated with the failure of the frac tree components at its Cambay-77H well. There were no ‘lost time incidents’ recording on this well during this quarter, however, which helped boost the production figures.
Now what: Monday’s announcement that higher than expected light oil/condensate was encountered at the Cambay-77H well, and is now being recovered to surface and separated for sale, drove the shares up 40%. Today’s further leap in the share price means that investors who held the shares at the end of last week are close to seeing their investment become a double-bagger in less than seven days.
Sam Robson has no position in any shares mentioned. The Motley Fool has no position in any of the shares mentioned.