Shares in Oilex (AIM:OEX) jumped this morning after the group told investors that it has disposed of its interests in the Cooper-Eromanga Basins to Armour Energy (ASX:AJQ).
Armour now acquired 100% of the issued capital of CoEra Limited (CoEra), a wholly owned Company subsidiary which holds all of Oilex's interests in the Cooper-Eromanga Basins.
Oilex previously announced that it had entered into a conditional binding Share Purchase Agreement (SPA) with Armour to sell all of its interests in the Cooper-Eromanga Basin.
The SPA included a 79.33% direct interest in two Petroleum Exploration Licences with an option to acquire the remaining 20.67%; the right to acquire 27 Petroleum Retention Licences from Senex Limited, as well as a successful bid for Block CO2019-C (PELA 677).
As consideration for the acquisition of Oilex's interests in Cooper-Eromanga Basins, Armour has today issued 22.05 million Armour shares to Oilex, being Oilex's share of the Tranche 1 consideration. Armour has also reimbursed Oilex in cash for past costs of A$0.125m.
Shares in Oilex have traded within a tight range of 0.06p and 0.08p in the past two weeks and opened 12% higher at 0.07p this morning following the announcement.
Meanwhile, Oilex said the sale process being conducted by Gujarat State Petroleum Corp Ltd (GSPC) for its 55% interest in the Cambay Production Sharing Contract (PSC) remains ongoing, though progress continues to be delayed due to the impact of COVID-19 in India.
Oilex received $0.238m from GSPC during the September quarter in respect of recent Cambay and Bhandut cash calls. It said regular dialogue now continues with GSPC and the Government of India (GoI) in order to bring the company’s efforts to a positive conclusion.
The sale of Bhandut PSC is nearing completion with only transfer by the GoI now required. Oilex said it continues to assist the new buyer, Kiri and Company Logistics Private Limited, in finalising the transaction and future activities in the PSC under a contract arrangement.
Oilex said its strategic efforts to regain a participating interest in the West Kampar PSC in Indonesia continue with recent discussions with the Indonesian government task force charged with implementing the management of upstream oil and gas business activities.
Oilex said it has also given presentations to the Indonesian government outlining its plan to rejuvenate the Pendalian oilfield, drill new in-field wells, and conduct exploration activities.
Oilex continues to evaluate new venture opportunities ‘in the search for robust projects which will progress the Company's main objective of returning value to shareholders.’
"Like most companies, our business is experiencing the impact of the COVID-19 pandemic, however, we remain confident of seeing our projects through to fruition. The Company's running costs continue to be minimized with the ongoing support of our employees and suppliers and shareholders,” commented Managing Director of Oilex, Joe Salomon.
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