London-listed Oilex (AIM:OEX ) has received a six month extension for the sale of its interests in the Cooper-Eromanga basin from Senex Energy Limited to Sydney-listed Doriemus.
The oil and gas exploration entered into a legally binding term sheet with Senex in September 2019 to acquire 27 petroleum retention licenses in the Northern Oil and West Gas Fairway located in the Cooper-Eromanga Basins in South Australia.
In January, Doriemus agreed to buy Oilex's 79% stake in the PEL 112 and PEL 444 licenses located in the Cooper-Eromanga basin, onshore Australia.
The proposed acquisition was dependent on a number of conditions, one of which was the successful equity raising of A$3.5 million by Doriemus, as outlined in a previous statement.
Shares in Oilex were trading 60.71% higher at 0.113p during Friday morning.
Despite strong funding support, it was reported that some investors had failed to settle their committed funds with Doriemus given the current global market challenges.
As a result, and following the subsequent withdrawal of the proposed capital raising by Doriemus, the transaction was likely to not proceed as initially planned.
“Both companies would benefit from the completion of a proposed transaction on Oilex's Cooper-Eromanga Basin interests and we are currently exploring alternative structures with Doriemus,” said Joe Salomon, Managing Director of Oilex, previously in a March statement.
He added today, "We appreciate the strong support of Senex and the South Australian Government while the Company adjusts to this dynamic new operating environment.
The extension, with minimal licence expenditure commitments, will give the Company the opportunity to move the projects forward in the best interests of all stakeholders."
Meanwhile, the company also announced a one month extension, in support of the ongoing discussions with Doriemus, to the role of the group’s chairman, Mr Bradley Lingo.
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