2nd May 2014 12:06
LONDON (Alliance News) - Oilex Ltd Thursday said it will retain its 45% stake in the Cambay Production Sharing Contract after the Indian government did not approve a deal Oilex had with Magna Energy Ltd.
As part of a sale and purchase agreement Magna Energy will now take 73.5 million Oilex shares giving it a 12.5% stake in the oil group.
AIM-listed Oilex had agreed to sell up to 15% of its interest in the Cambay project in India to Magna Energy for USD6 million. Magna had already paid USD4 million for an initial stake in the contract, but it will now receive Oilex shares instead of a larger stake.
"Oilex welcomes Magna as a cornerstone investor in Oilex, acquiring 12.46% of its expanded issued share capital through the unwind provisions of the SPA," Managing Director Ron Miller said in a statement.
"We look forward to Magna's ongoing support for the Cambay Tight Hydrocarbon Project and Oilex," he added.
The stock was trading at 4.15 pence Friday morning, down 0.10 pence or 2.4%.
By Anthony Tshibangu; [email protected];
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