25th Mar 2020 11:55
(Alliance News) - Oilex Ltd said Tuesday that the sale of its interests in the Cooper-Eromanga basin to Sydney-listed Doriemus PLC is in doubt after the latter announced that it would not be proceeding with a capital raising.
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.
After Doriemus shareholders backed all resolutions put to them at a general meeting, the remaining conditions included the completion of a minimum fundraise of AUD3.5 million.
Oilex back in February said Doriemus had conducted an equity raise which secured funds of about AUD3.5 million, however despite strong funding support during the book build, some investors did not settle their committed funds due to global market challenges.
As a result, Doriemus said it will not be proceeding with the capital raising.
Oilex does not expect the deal with Doriemus to proceed as initially planned, but both companies are in talks for a revised transaction structure including a modified schedule for completion.
Oilex is also in discussions for an extended timetable to the completion of the proposed transaction with Doriemus.
In the meantime, the Cooper-Eromanga basin assets will remain in Oilex's portfolio.
"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. Further information will be provided as it becomes available," said Managing Director Joe Salomon.
Shares in Oilex were down 5.8% at 0.080 pence on Wednesday in London.
By Dayo Laniyan; [email protected]
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