27th May 2020 17:11
(Alliance News) - Oilex Ltd on Wednesday said it has signed an agreement to sell its Cooper Eromanga Basin assets in Australia to Sydney-listed Armour Energy Ltd.
As per the terms, Armour will acquire CoEra Ltd, an Oilex subsidiary, which owns all of the company's assets in the basin.
These assets include a 79% interest the PEL 112 and PEL 444 exploration licences and the option to acquire the further 21% stake. It also includes the right to acquire 27 petroleum retention licences from Senex Ltd.
If the deal goes ahead, it will mean Oilex is solely focused on its assets in India and the UK Continental Shelf.
Armour will issue up to 34.5 million shares to Oilex to fund the transaction.
A first tranche of 24.5 million shares will be issued. Should the value of the first tranche total less than AUD906,500, about GBP488,239, the second instalment will be the lower of 10 million Armour shares or the amount of shares needed to ensure the two tranches have an aggregate value of AUD906,500.
Oilex shares closed 1.8% higher at 0.094 pence each in London on Wednesday. Over in Sydney, Armour closed 6.9% lower at AUD0.027.
By Eric Cunha; [email protected]
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