News out this today regarding a capital raising at Oilex with existing shareholder Republic committing just under £200,000 in equity & £138,125 in conv loan capital is good news for all shareholders on many counts. Firstly, with the all important court hearing in Gujarat due next week on the 19^th it sends a strong signal to GSPC that the company remains well funded and is prepared to continue to assert its rights ref the default on GSPC’s part.

Secondly, with funding securing the company into 2019 on the current cash burn, should the hearing next Wed result in a lifting of the Stay we would expect farm in discussions with other partners to commence in earnest. The Cambay block is a major asset in the Indian province and as per our note HERE we expect workovers to commence sooner rather than later should clear title over 100% of the Cambay Field be reasserted in Court. We make the point that our price target of 1.60p was based upon 45% current ownership of the asset and not 100%.

We are also informed the placing UK side has gone into solid hands who are in for the build out of the business and not a quick flip. With this raise now being the fourth time Republic have committed to the company this also illustrates the confidence they have in the underlying asset and the end process now being in play ref the receipt of 100% ownership of Cambay given GSPC’s default. We maintain our Conviction Buy stance given the risk/reward multiple and in illustrating this have participated in the placing. Should the court stay be lifted we expect a meaningful re-rate in the stock next week.

DISCLAIMER & RISK WARNING

Oilex is a research client of Align Research. Align Research & a director of Align Research own shares in Oilex and are bound to Align Research’s company dealing policy ensuring open and adequate disclosure. Full details can be found on our website here (“Legals”).

This is a marketing communication and cannot be considered independent research. Nothing in this report should be construed as advice, an offer, or the solicitation of an offer to buy or sell securities by us. As we have no knowledge of your individual situation and circumstances the investment(s) covered may not be suitable for you. You should not make any investment decision without consulting a fully qualified financial advisor.

Your capital is at risk by investing in securities and the income from them may fluctuate. Past performance is not necessarily a guide to future performance and forecasts are not a reliable indicator of future results. The marketability of some of the companies we cover is limited and you may have difficulty buying or selling in volume. Additionally, given the smaller capitalisation bias of our coverage, the companies we cover should be considered as high risk.

This financial promotion has been approved by Align Research Limited.

• Oilex