4th Feb 2020 14:31
(Alliance News) - Oilex Ltd on Monday said it has secured a new loan facility of GBP350,000 from existing investors.
The oil & gas exploration and production company said that the new unsecured series C facility bears an interest rate of 5% per annum and is 100% payable on the maturity date of August 1.
The loan proceeds will be used to meet working capital requirements.
Republic Investment Management Pte Ltd - which has a 13% shareholding in Oilex - participated in GBP125,000 of the loan amount and will be issued 59.5 million options.
As part of the loan, Oilex will issue 166.7 million options to subscribers with an exercise price of GBP0.0021 per option which if entirely exercised, will result in further funding of GBP350,000.
Additionally, Oilex has agreed to not dispose of assets having an aggregate value more than AUD1 million, around GBP517,000, not to incur any financial indebtedness more than AUD50,000, and not to incur any aggregate payment or outgoings exceeding AUD1 million.
On Monday, Oilex said it is making progress on field disposal plans in both in India and Australia. The company said its Indian partner Gujarat State Petroleum Corp has started a sale process for its 55% participating interest in Cambay. It added that a preferred bidder has been identified by Gujarat State Petroleum, and this bidder has been invited to finalise negotiations before seeking applicable regulatory approvals in India.
Oilex holds a 30% stake in Cambay and is an operator, with its Indian subsidiary, Oilex NL Holdings (India) Ltd, holding the remaining 15% of the field.
Also in India, Oilex said it has agreed to sell its entire 40% holding in the Bhandut field for USD140,000.
Additionally, during the quarter to the end of 2019, Oilex said it agreed to sell all of its interests in the Cooper-Eromanga basin, onshore Australia to Sydney-listed Doriemus PLC.
Shares in Oilex - registered in Perth, Australia - were up 9.1% at 0.18 pence each on Tuesday afternoon in London.
By Ife Taiwo; [email protected]
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