Strong Funding Support for Cooper-Eromanga

ASX-RNS Announcement

21 February 2020

ASX: OEX

AIM: OEX

Oilex Ltd (the Company) is pleased to advise that Doriemus plc (Doriemus) has successfully completed a conditional bookbuild to raise A$4.5 million via a placement of Doriemus shares and options (Placement). A copy of the Doriemus press release is set out at the end of this announcement.

The Placement by Doriemus will, upon completion, satisfy a key condition precedent to the proposed acquisition by Doriemus of the Company's portfolio of Cooper-Eromanga Basin assets, as detailed in the Company's announcement on 29 January 2020 ("Acquisition"). The Acquisition remains subject to a number of other conditions precedent as set out in the same announcement.

The proposed Placement will be completed by Doriemus at an issue price of A$0.035 per Doriemus CHESS Depositary Interest (CDI) together with one (1) free option for every three (3) CDIs subscribed for in the Placement. Each of the options will have an exercise price of A$0.08 each and to be exercised at any time up to the date that is 4 years from the date of completion of the Acquisition (Options). The Options will be listed on the ASX by Doriemus subject to meeting certain ASX listing requirements.

The completion of the Placement is subject to Doriemus shareholder approval at a meeting on or around 12 March 2020, and completion of the Acquisition. If completion of the Acquisition does not occur, no CDIs or Options will be issued under the Placement.

Background

On 29 January 2020, the Company announced that it had signed a binding Heads of Agreement (HOA) with Doriemus, an ASX-listed company, for the proposed sale of all of Oilex's interests in the Cooper-Eromanga Basin to Doriemus. Amongst other conditions, Doriemus was required to complete a minimum capital raising of A$3.5 million. Details of all the material terms of the Acquisition, including the conditions precedent, are detailed in the Company's the same announcement.

Commenting on the transaction, Managing Director, Joe Salomon, said: 

"The Doriemus capital raising, which was well supported by investors, is a critical milestone for the completion the spin-out of our Cooper-Eromanga assets. Oilex retains a significant interest in the value potential of the Cooper Eromanga assets through the 25.5 million Doriemus shares it will receive as consideration."

For and on behalf of Oilex Ltd

Joe Salomon

Managing Director

For further information, please contact:

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 Doriemus Plc

ARBN: 619 213 437

ASX / Media Announcement 21st February 2020

$4.5M PLACEMENT TO SUPPORT TRANSFORMATIONAL ACQUISITION OF MAJOR COOPER BASIN PORTFOLIO

HIGHLIGHTS

·; Conditional placement completed to raise $4.5 million.

·; Placement satisfies minimum capital raising condition for recently announced transformational acquisition of a major Cooper-Eromanga portfolio of oil and gas assets.

·; Priority offer of up to an additional $1.5 million will be made to certain eligible Doriemus plc and Oilex Limited shareholders on the same terms as the Placement.

·; Shareholder meeting to approve the Acquisition and associated transactions scheduled for Thursday, 12 March 2020.

·; Acquisition remains subject to a number of other conditions being satisfied.

Doriemus plc ("Doriemus" or the "Company") is pleased to announce that it has successfully completed a bookbuild to raise $4.5 million (before costs) via a proposed placement of new securities to a number of sophisticated and professional investors ("Placement").

The Placement was strongly supported by new and existing investors and satisfies a key condition precedent to the proposed acquisition by Doriemus of a portfolio of oil and gas assets within the proven onshore South Australian Cooper-Eromanga Basin as detailed in the Doriemus announcement on 30 January 2020 ("Acquisition"). The Acquisition remains subject to a number of conditions precedent being satisfied including, obtaining various shareholder approvals, completion of due diligence and the execution of definitive transaction documentation.

In addition to the Placement and as previously announced, the Company intends to undertake a priority offer to certain eligible existing Doriemus and Oilex shareholders (where final eligibility is yet to be determined) for up to an additional $1.5 million on the same terms as the Placement ("Priority Offer").

Hartleys Limited is Lead Manager to the capital raising.

Doriemus' Chairman, Keith Coughlan, commented:

"The strong support for this placement is a significant validation of the Company's recently announced transaction to re-focus as a Cooper-Eromanga Basin oil and gas explorer/developer. The Company will target high return, high chance-of-success oil & gas opportunities in proven producing petroleum fairways with the benefit of an incoming technical team that has had considerable historic success in this basin.

We are well advanced in finalising the acquisition and we continue to look forward to a new and exciting future for Doriemus in Australia's premier onshore basin and an active near-term drilling program in the second half of 2020."

USE OF PROCEEDS

As originally announced on 30 January 2020, funds raised from the Placement and Priority Offer, together with Doriemus' existing cash, will be used as follows:

·; to finalise the transfer of the 27 Petroleum Retention Licences to be acquired from Senex Energy Limited as part of the Acquisition;

·; to undertake an initial work programme on its new Cooper Basin portfolio focused on target generation using airborne geophysical surveys, soil sampling, existing 2D and 3D seismic evaluation and prospect mapping;

·; to fund Doriemus' share of its planned Cooper Basin well drilling program in Q4 CY2020 (targeting 2 to 3 wells*); and

·; for working capital purposes.

* The work programme may be subject to change depending on farm-out discussions, Doriemus’ balance sheet at the time of drilling as well as other confirmations.

PROPOSED CAPITAL RAISING

The Placement will result in the issue of 128,571,430 CHESS Depositary Interests ("CDIs") (representing ordinary shares in the company on a 1:1 basis) at an issue price of A$0.035 per CDI. Participants in the Placement and the Priority Offer will also receive one (1) free option for every three (3) CDIs subscribed for in the capital raising, meaning that it is proposed that a maximum 42,587,143 options are also issued as part of the Placement ("Options"). Each of the options will have an exercise price of $0.08 each and to be exercised at any time up to the date that is 4 years from the date of completion of the Acquisition ("Options"). The Options are proposed to be listed as a new class of quoted securities on the ASX subject to meeting certain ASX listing requirements.

The securities to be issued pursuant to the Placement and Priority Offer will be issued subject to Doriemus shareholder approval at a meeting of shareholders currently scheduled to take place on or around Thursday, 12 March 2020. The Placement will not proceed if the Acquisition does not proceed to completion. Details of all the material conditions precedent are detailed in the Company announcement dated 30 January 2020.

Settlement of the Placement and Priority Offer is scheduled to occur on or around Friday, 20 March 2020.

This announcement has been approved for release by the Board of Doriemus plc in consultation with Oilex Limited.

CONTACT:

For further information on this update or the Company generally, please visit our website at www.doriemus.co.uk or contact:

Jessamyn Lyons

Joint Company Secretary

Tel: +61 (0) 8 6245 2050

Email: [email protected]

FORWARD LOOKING STATEMENTS AND IMPORTANT NOTICE:

This announcement may contain forecasts, projections and forward-looking information. Although the Company believes that its expectations, estimates and forecast outcomes are based on reasonable assumptions it can give no assurance that these will be achieved. Expectations, estimates, projections and information provided by the Company are not a guarantee of future performance and involve unknown risks and uncertainties, many of which are out of the Company's control. In respect to its UK operations, Doriemus is reliant on the information provided by the operators of those assets and does not control the day to day operations of these projects and is not always able to independently verify the information provided by such operators. Actual results and developments may differ materially from those expressed or implied. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by many variables which could cause actual results or trends to differ materially. To the maximum extent permitted by applicable laws, the Company makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assumes no liability for (1) the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission from, any information, statement or opinion contained in this announcement and (2) without prejudice to the generality of the foregoing, the achievement or accuracy of any forecasts, projections or other forward looking information contained or referred to in this announcement.

Investors should make and rely upon their own enquiries before deciding to acquire or deal in the Company's securities.

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