12th Sep 2014 09:38
LONDON (Alliance News) - Oilex Ltd Friday posted a narrowed pretax loss for the year to end-June, in what it said has been an "encouraging year" as it made progress on its flagship Cambay project in India, and acquired Canning Basin acreage in Western Australia.
The company posted a pretax loss of AUD3.8 million, narrowed from a loss of AUD9.1 million a year earlier, as revenue rose to AUD250,620, from AUD195,925.
During the year, the company drilled and completed the 2,370 metre MD Cambay-77h well; the well was spudded in March and a comprehensive quite of logs confirmed that the wellbore had encountered a "significant sequence of hydrocarbon bearing reservoir similar to Cambay-76H".
Following the year end, the company completed milling operations at the site, and the well is currently in the clean up phase. Oilex said it will advise the market of a stabilised flow rate via a production test once frac fluid return and clean-up operations are finished.
Also after the year end, Oilex get an endorsement of its Cambay-73 gas aales agreement from Indian government authorities, which Oilex said was a critical milestone for increasing production from the field and supplying gas to the local market.
During the year, the company conducted an aerial gravity and magnetic survey over the SPA 17 AO block at the Canning basin in Western Australia. Preliminary interpretation confirms that the Wallal Graben prospect identified in its adjacent permits extends into the block.
Oilex said it remains focused on near term production from the well, as well as two of its exiting wells in India.
It was successful in its bids for blocks covering 6,444 kilometres squared immediately adjacent to the SPA 17 AO block, which has been interpreted to contain an extension of the Wallal Graben prospect.
Following the year end, Oilex strengthened its financial position by raising USD2.13 million through the placing of 18.6 million shares, and a further USD1 million was raised through the conversion of options.
Shares in Oilex were trading down 3.3% at 8.10 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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