27th Jun 2006 07:00
OILEX NL27 June 2006Alternative Investment MarketLONDON UKDear Sir * A$20 MILLION PLACEMENT TO FUND EXPLORATION AND DEVELOPMENT * RIG CONTRACTED FOR CAMBAY FIELD PHASE 1 DRILLING PROGRAMME - INDIA The Directors of Oilex NL ("Oilex") are pleased to announce that the Companyhas reached in-principle agreement with Hartleys Limited, as Lead Manager tothe Placement, to raise up to approximately A$20 million through the placementof 23,600,000 ordinary fully paid shares at $0.85 per share, predominantly toUnited Kingdom, North American, Asian and domestic institutional clients.Oilex intends using the funds raised for the following purposes: * fund the acquisition of an additional 15% interest in Cambay field, and acquire a 40% interest in each of Bhandut and Sabarmati fields in Gujarat State, India, from Niko Resources Ltd; * undertake drilling of up to 3 wells in Cambay Field, and allow for completion costs; * acquire 3D seismic on Cambay Field; * allow for drilling and completion of additional 2 wells on Cambay Field; * acquire 3D seismic on Bhandut and Sabarmati fields; * acquire 2D and 3D seismic on Oman block 56; * acquire 2D seismic on EPP 27 Otway basin; and * provide working capital. The Directors are appreciative of the strong support for the company's statedobjectives and future plans that has been demonstrated by Hartleys Limited andthe parties who are participating in this capital raising.The shares will be allotted subject to shareholder approval being obtained at aGeneral Meeting to be held on or around 28 July 2006, in relation to which anotice of meeting is expected to be despatched this week.Cambay Drilling- IndiaOilex is also pleased to confirm that a rig has been contracted in India tocommence the first phase drilling programme on Cambay Field, Gujarat. Oilex, onbehalf of the Cambay Joint Venture has made an agreement with Gujarat StatePetroleum Corporation Ltd (GSPC) for two slots on its recently contracted DalmaEnergy MR-1 drilling rig and associated services. Oilex has confirmed thesecond and third firm slots with this rig which will follow a well that will bedrilled by GSPC on a nearby permit. The first of the Cambay Field wells isexpected to spud in the second half of July, subject to progress on the GSPCwell. Oilex has completed construction of three monsoon grade locations inreadiness to drill.Oilex is Operator of the Cambay Field and holds 45% interest, 15% of whichOilex acquired from Niko Resources Ltd and is subject to approval of theGovernment of India.A related Press Release is attached.For and on behalf of the BoardBruce McCarthyManaging Director cc; directors MC/RB/GIJMEDIA RELEASE 27 JUNE, 2006 OILEX UNVEILS LANDMARK A$20M CAPITAL RAISINGUNDERPINS DEVELOPMENT & EXPLORATION PROGRAMS IN INDIA, AUSTRALIA AND OMAN Australian-based Oilex NL (ASX: OEX, AIM: OEX) today announced a proposed A$20million institutional capital raising to underpin its next phase of growth asan international oil and gas company. The proceeds of the raising will beutilised for major development & exploration drilling programs in India,Australia and Oman and will also enable Oilex to increase its exposure to itsflagship development and exploration assets in north-western India.The Perth-based Company - which has reshaped its growth strategy over the past12 months as an international oil and gas group with a strong focus in India -said today (Tuesday) it had reached in-principle agreement with Australianbroking firm Hartleys Limited, as Lead Manager, to raise up to A$20 millionthrough the placement of 23.6 million shares at A$0.85 per share -predominantly to UK, North American, Asian and Australian institutionalinvestors.The landmark fund raising follows an active and successful 12 months for Oilex,which has seen the Company develop its portfolio of exploration assets withmajor Indian companies including integrated energy company Gujarat StatePetroleum Corporation (GSPC), India's largest gas marketer and distributor GAIL(India) Ltd, leading oil refiner Hindustan Petroleum Corporation Ltd, andlisted Indian conglomerate Videocon Industries Ltd.To date in India, Oilex has acquired interests in three fields, including a 45%interest in the onshore Cambay Field in Gujarat State, and a 40% interest ineach of the Sabarmati and Bhandut Fields, subject to the approval of theGovernment of India. With the benefit of its strong alliance relationships, theCompany has also been awarded a highly prospective onshore block in Oman (inthe South Oman Basin) with Indian partners and farmed in with Videocon and GSPCon an offshore block in the Otway Basin in South Australia.Oilex's Managing Director, Bruce McCarthy, said the proceeds of the A$20million placement would be utilised to progress the Company's growth strategyon a number of fronts, including the acquisition of an additional 15% interestin the Cambay Field and a 40% interest in the Bhandut and Sabarmati Fields,located in the same region of the Cambay Basin."In addition, it will underpin the drilling of up to five appraisal anddevelopment wells in the Cambay Field including completion costs, and fund theacquisition of 3D seismic on the Cambay, Bhandut and Sabarmati Fields, as wellas the acquisition of 2D and 3D seismic on our newly awarded Block 56 in Omanand the acquisition of 2D seismic on EPP 27 in the Otway Basin," Mr McCarthysaid."We are delighted with the strong response from institutional and retailinvestors, which demonstrates fundamental support for our growth objectives andfuture plans as an international oil and gas company," he added.The placement requires shareholder approval, which will be sought at a generalmeeting to be convened on or about 28 July 2006. Following completion of theplacement, Oilex will have over A$20 million in cash reserves and some 74million shares on issue, giving it a market capitalisation of approximatelyA$75 million.FIRST PHASE DRILLING TO COMMENCE IN INDIAOilex also announced today that a rig has now been contracted to commence thefirst-phase drilling program on the Cambay Field. The first of the Cambay Fieldwells is expected to spud in the second half of July 2006, utilising the secondand third firm slots of a drilling program on the recently contracted DalmaEnergy MR-1 drilling rig. Oilex has completed construction of threemonsoon-grade locations in readiness to drill.The Company recently took over as operator of the Cambay Field, which islocated in a prolific onshore petroleum province in Gujarat at the northern endof the Bay of Cambay, close to existing pipelines and industrialinfrastructure. The Bhandut Field is located to the south of Cambay, near theindustrial centre of Hazira, while the Sabarmati Field is located further tothe north, near Ahmedabad.Oilex has assembled a strong technical team, including Technical Director RayBarnes, a former Technical Director of Voyager Energy, Chief Operating Officerand Country Manager India, Rich Paces, based in New Delhi, and General Manager- Operations, Tony Beckett, based in Vadodara, Gujarat, giving it the abilityto undertake ambitious projects and maintain its objective of technicalexcellence and efficiency in all of its areas of operation. -ENDS- Released by: On behalf of: Jan Hope/Nicholas Read Oilex NL Jan Hope & Partners Bruce McCarthy - Managing Director Telephone: (+61-8) 9388-1474 Telephone: (+61-8) 9226-5577 Web: www.oilex.com.au Level 3, 50 Kings Park Road West Perth Western Australia 6005 P.O. Box 588 West Perth Western Australia 6872 Telephone (61 8) 9226 5577 Facsimile (61 8) 9226 2108 email: [email protected] www.oilex.com.au ENDOILEX NLRelated Shares:
OEX.L