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Oilex sells Australian, Indian assets
AUSTRALIAN independent Oilex has agreed to sell recently acquired assets in Australia as well as a production-sharing contract (PSC) in India as it shi s its focus to exploration plays in the UK.
Oilex said on January 29 that it intended to sell its interests in the South Australian Coop- er-Eromanga Basin to UK-based developer Doriemus. e two companies have signed a binding heads of agreement (HoA) that will see Doriemus acquire a 79.33% interest in petro- leum exploration licences (PELs) 112 and 444, as well as an option to acquire the outstanding 20.66%. Oilex secured the option in August 2019 when it agreed to acquire an additional 51.5% interest in the licences, which cover 2,252 square km, from Perseville Investing and Terra Nova Energy.
Doriemus will also receive the right to buy 27 petroleum retention licences (PRLs) from Senex in the Northern Oil and West Gas Fairway. Oilex agreed to buy the licences, which cover 2,445 square km, in September 2019.
Under the deal, Doriemus will issue 28.3mn CHESS depositary interests (CDIs) – equivalent to the same number of shares – to Oilex. e Australian developer said the shares were worth AUD764,000 ($511,000) based on Doriemus’ closing share price on January 28 or AUD2.4mn ($1.6mn) based on nancial statements for the rst half of nancial year 2019-2020.
Doriemus will assume existing abandonment liabilities for the PRLs, estimated at AUD1.1mn ($736,000), future PRL fees as well as any work commitments including well commitments at PELs 112 and 444. The transaction is sub- ject to Doriemus successfully raising at least AUD3.5mn ($2.3mn), with the UK company having said it will seek to raise AUD3.5-5mn ($2.3-3.3mn).
e completion of the deal will also see Oilex chairman Brad Lingo step down to become Doriemus’ new managing director, while Oilex managing director Joe Salomon would move across to become a director of Doriemus.
The day before the announcement of the Doriemus deal, Oilex said it had agreed to sell
Image: Oilex
its 40% operated interest in the Bhandut PSC in India’s Gujarat State to local logistics provider Kiri. Oilex said state government-run GSPC had selected Kiri as the preferred bidder for its 60% stake in the PSC.
Kiri has expressed an interest in engaging the services of Oilex’s o ce to review eld produc- tion, stabilise operations and initiate eld re-de- velopment of the Bhandut PSC, which is shut-in, in accordance with the eld development plan (FDP).
e sale of Oilex’s stake is conditional upon Kiri completing the acquisition of GSPC’s inter- est in Bhandut before March 31.
The divestments come following Oilex’s e orts to expand its presence in the UK. e Australian company announced on December 23 that it had entered into a binding term sheet with Burgate Exploration and Production to acquire 100% of the Doyle-Peel licence (P2447) in the East Irish Sea o shore the UK as well as 100% of the Castletown licence (P2076).
In September, the company entered into an exclusivity agreement with Koru Energy on the potential acquisition of a 50% stake in the Knox and Lowry, and Whitbeck (KLW) gas discover- ies in the East Irish Sea.™
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w w w. N E W S B A S E . c o m Week 05 05•February•2020