14th Oct 2013 07:00
14 October 2013
OILEX AWARDED two petroleum exploration permits in CANNING BASIN
· Oilex notified of successful applications for gazettal blocks L12-08 and L12-09
· Combined with adjacent, 100%-owned SPA-0055, Oilex controls entire, deep undrilled half graben in one of Australia's premier emerging unconventional basins
· A total acreage position of 17,840 km2 (~4,400,000 acres)
· Numerous approaches by both International and Australian energy companies as well as private equity firms to participate in the acreage
Oilex Ltd (ASX: OEX, AIM: OEX) is pleased to announce that its wholly-owned subsidiary, Admiral Oil NL, has been notified by the Government of Western Australia Department of Mines and Petroleum of its two successful applications for contiguous gazettal blocks L12-08 and L12-09. This area covers 6,444 km2 (~1,600,000 acres) in the onshore Canning Basin, Western Australia. Combined with the adjacent, 100%-owned Special Prospecting Authority SPA-0055, Oilex now controls acreage encompassing the entire Wallal Graben, a deep undrilled half graben in one of Australia's premier emerging onshore unconventional basins.
Oilex's 100%-owned acreage position now encompasses 17,840 km2 (~4,400,000 acres) in an area that may have similar geological characteristics to Oilex's Cambay Field and possibly being prospective for oil and liquids-rich gas.
According to the US Energy Information Administration (EIA), the Canning Basin has the largest unconventional hydrocarbon potential in Australia. Significant farm-in activity related to potential unconventional resources in Australia has recently occurred and involves global industry majors.
Planning and competitive tendering for an airborne gravity and magnetic survey has commenced for SPA-0055. Due to the contiguous nature of the three permits, Oilex may consider the opportunity to acquire a single large survey to potentially realise cost efficiencies and expedite a technical understanding of the area's potential.
The airborne gravity and magnetic data acquisition, processing and interpretation will fulfil two key contractual objectives for the areas;
1. Under the terms of the Special Prospecting Authority, Oilex will have an exclusive option to negotiate the conversion of a portion of SPA-0055 into a Petroleum Exploration Permit should the gravity and magnetic data support the existence of a previously overlooked play fairway in this area.
2. Partial fulfilment of the minimum work requirements for L12-08 and L12-09.
As previously announced, a formal farmin process commenced due to the amount of industry interest received by Oilex. Numerous approaches by International and Australian companies as well as private equity firms to farmin to the acreage continue. It is expected that the successful applications of L12-08 and L12-09 will enhance the ability to conclude a farmin agreement with an interested party or parties and quickly move forward towards field activities. Oilex now has 14 days to formally accept the offers for the blocks.
Managing Director Ron Miller said: "Oilex is pleased with the successful application for two prospective permits adjacent to SPA-0055. This has placed Oilex in an extremely strong position and enables full control of a deep, undrilled half graben and its identified prospective play fairways. The areas are located adjacent to the established Pilbara Mining District and therefore have the potential benefit of access to significant infrastructure already in place.
Located in a region that we have designated as a priority for the Company, Oilex remains committed to developing prospective acreage on the Indian Ocean Rim that will help supply energy to the Indian economy.
Oilex is uniquely positioned to capitalise on the Indian energy market opportunity where domestic natural gas prices are very robust and use the company's extensive commercial relationships developed through our existing Indian operation."
About Oilex Ltd
Oilex Ltd is dual listed on the ASX in Australia and AIM in the UK (ticker: OEX) independent oil and gas exploration and production company with active assets in India and Australia.
Oilex aims to become a significant energy producer in India where there are compelling commercialisation opportunities. The Company is currently focused on the "tight" reservoirs of the Cambay Field, onshore Gujarat, India. Oilex's strategy for commercialising the Cambay Field is applying modern evaluation, drilling and production technologies that have been successfully developed and implemented in the North American shale gas industry.
Consistent with its strategy to focus on onshore tight reservoir plays around the Indian Ocean Rim, Oilex has secured a large and potentially prospective acreage position in the Southwestern Canning Basin, a premier onshore area in Western Australia.
For further information, please contact:
Oilex Ltd Ron Miller, Managing Director Email: [email protected] Tel: +61 8 9485 3200 Australia | RFC Ambrian Limited Nominated Adviser and AIM Broker Samantha Harrison Email: [email protected] Tel: +44 203 440 6800 UK
| Tavistock Communications Conrad Harrington Email: [email protected] Tel: +44 207 920 3150 UK |
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