30th Apr 2018 17:26
LONDON (Alliance News) - Oilex Ltd said Monday it has entered into placement agreements to issue 125 million new shares at an issue price of 0.004 cents.
The prospective USD500,000 raised is due to be completed by mid-May. The funds raised will be used for the capital requirements of the company.
In a separate statement, Oilex said Monday that its shareholders approved the conditional tranche 2 capital raising to secure funding of up to USD1.75 million. A "substantial majority" of subscribers agreed to extend the date for extension of the tranche 2 conditions precedent to July 31.
The completion of tranche two was subject to the successful extension of the Cambay production sharing contracts by the Government of India for a further ten years on or before March 31.
It received notice that the Ministry of Petroleum and Natural Gas has approved the proposal for the grant of ten year extensions to the Cambay and Bhandut production sharing contracts at the beginning of April.
The joint venture at Cambay Field had about gross 3,160 barrels of oil at the end of March. A revised work programmes and budget is being prepared by the company. It will include two vertical wells and after "adequate financing" and approval of the management committee, it will proceed to order long lead items.
During the quarter, Oilex did not receive any payments from its joint venture partner, GSPC, although it "continues to maintain a dialogue" to resolve payment of the outstanding cash calls.
Oilex continues to look for buyers for its production sharing contract at it Bhandut Field.
Its cash resources are USD700,000 at the end of March.
Shares in Oilex closed down 4.3% Monday at 0.22 pence each.
Related Shares:
OEX.L