The company’s fortunes were sparked by an oil discovery at the Rookwood South-1 well in Queensland's Surat Basin, which has opened a possible a new oil trend west of the Basin’s known oil producing areas.
"Rockwoood reminds me a lot of Arc when they discovered Hovea, no one was really sure of the extent of the discovery," said Oilex managing director David Archibald.
"Right now we don't know how big this thing is either but a study of the seismic has revealed at least 20 bumps on the trend."
Meanwhile, Oilex has farmed in to Great Artesian Oil and Gas Ltd's EPP 27 licence in the South Australian section of the offshore Otway Basin. The company will earn a 60% stake by funding 100% of the cost of one well, with an option to increase its stake to 75% by drilling a second well.
"We are hoping drilling will begin in the second quarter 2005 and success there will put us in to a whole new league," said Archibald.
Great Artesian said the block contains more than 15 identified prospects and leads, most involving multiple potential reservoir targets, although a final location for the well is yet to be determined.
Shares in Victoria Petroleum NL, which holds a 24% stake in the joint venture that contains the Rookwood South discovery well, were also up 0.3 cents at 4.9 cents.
