7th Aug 2019 11:41
(Alliance News) - Shares in Oilex Ltd rose on Wednesday after it agreed to buy a 48% stake in two exploration licences within the Cooper-Eromanga basins, onshore Australia.
Shares in the oil and gas explorer were 23% higher at 0.15 pence on Wednesday in London.
Oilex signed an agreement with Australian oil firm Holloman Energy Corp to acquire Holloman's 48% interest in the PEL 112 and PEL 444 licences for AUD145,500 in cash and shares.
Oilex will issue a total of 40.4 million shares at a price of 0.3 Australian cent each - worth about 0.17p per share and AUD121,000 in total - and make a cash payment of AUD24,250.
The company has already issued 24.3 million shares as an initial payment to Holloman, and will issue the remaining 16.1 million shares and make the cash payment when the deal is completed, subject to shareholder approval.
Both licences are located on extensions of the Western Flank oil fairway, which hosts around 30% of the Cooper Basin. PEL 112 covers 1,086 square kilometres, and PEL 444 covers 1,166 square kilometres.
Oilex said it is in discussions with the remaining holders of the licences to increase the company's participating interest.
"We are pleased to announce this new acquisition in the world class Cooper-Eromanga basins. The company has been actively reviewing the basin for more than two years and we anticipate today's first step will be expanded on in the near future. The basin is well endowed with infrastructure providing for attractive low-cost discovery and development for Oilex," said Managing Director Joe Salomon.
The company remains committed to unlocking the potential of its Cambay Project in India and delivering value to its shareholders. The Cooper-Eromanga Basins provides an opportunity for shareholder value accretion while preserving significant exposure to the significant potential at Cambay," Salomon added.
Related Shares:
OEX.L