The Motley Fool

Why Shares In OILEX LTD. (UK) Spiked Today

Although we don’t believe in timing the market or panicking over every stock fluctuation, understanding how a business is performing, competing and changing is vital to sensible investment.

What: Shares in Oilex (LSE: OEX) saw another +10% rise in early trade this morning, after issuing a positive update on its Cambay-77H well in the Indian state of Gujarat.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

oil rigSo what: While business as normal was reported in recovering light oil and frac fluids, preliminary analysis of the water encountered during the flow-back operations showing that it is consistent with frac water and not formation water was received warmly by the company and investors alike, as it’s a strong sign that the well will be a strong performer. 

Furthermore, the oil that has been recovered has the appearance of other high-quality Cambay crude oils, and is being transported to a nearby refinery for sale, where it attracts a price similar to ‘Bonny Light’ crude oil. Oilex managing director Ron Miller commented: “It is a nice sweetener to continue production of crude oil which sells for an attractive price during flow-back and clean-up as some North American wells only flow water during early clean-up. “

Now what: Trading at just shy of 10p this morning, it’s easy to see how far the shares have come in the last month or two, especially in comparison to its price of 4p as recent as the beginning of May this year. However, the price has been volatile recently, with peaks and troughs alike resulting from news coming from this one well alone, and Ron Miller did cite some caution in the update, stating: “As the first well of this type in the Cambay Basin to “flow-back and clean-up”, it is not unexpected for some remedial work as part of those operations.” My advice is for investors to be cautious at this stage, too.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Sam Robson has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.