Oilex to Raise $23 mn for 2015-16 Work Program

Oilex will raise $23 million (A$30 million) through share placement to fund its 2015-16 work program.

In the first tranche placement, the company will issue 45,393,466 new ordinary shares at an issue price of A$0.041 to sophisticated investors to raise A$1.8 million ($ 1.4 million).  Oilex will seek shareholder approval for the issue of a further 287,303,319 new ordinary shares at an issue price of A$0.041 (2 pence) and 225,490,196 new ordinary shares to be issued at A$0.0418 (2.04 pence), to raise A$21.2 million ($16.3 million).

Zeta Resources Limited (Zeta) will acquire approximately 19.6 percent interest in Oilex.

Funds will be used for Cambay and Bhandut field work programmes for 2015-16, minimum work commitments in the Canning Basin and working capital. The company is fully funded to deliver the Cambay field work programme, which Oilex considers a transformational event for the company.

Last month, the company announced it has started gas sales from Cambay-73 well into the low pressure local market near the Cambay field in the Indian state of Gujarat. Later this year, Oilex intends to recommence production from Cambay-77H to increase gas sales to the local market as well as commencing gas sales from Bhandut-3. In addition, the approved firm work program for 2015-16, includes 5 well workovers and consideration is being given to those which have penetrated the same formation and could be capable of gas production for the local market.