(Alliance News) - Oilex Ltd said Wednesday it has agreed to sell all of its interests in the Cooper-Eromanga basin, onshore Australia to Sydney-listed Doriemus PLC.
Specifically, the oil & gas explorer will dispose of its 79% direct interest in the two petroleum exploration licences PEL 112 and PEL 444, with an option for Doriemus to acquire the remaining 21%.
In addition, previously AIM-listed Doriemus will acquire the right to acquire 27 petroleum retention licences from Senex Ltd.
Doriemus will pay for the acquisition through the issue of 28.3 million CHESS depositary interests. Based on Doriemus's closing share price on Tuesday at AUD0.03, this value the CDIs at AUD764,000.
The sale is subject to the satisfaction of several conditions, including shareholder approval, due diligence by both parties, and Doriemus completing a capital raising of between AUD3.5 million and AUD5 million at least.
The sale has a deadline of June 30 for the conditions to be met. Should the sale be completed, Oilex Chair Brad Lingo will become managing director of Doriemus, leading to him stepping down from Oilex.
Oilex has already started a formal process to appoint a new chair.
Should the sale be completed, Oilex will no longer have any interests in Australia, and will focus on developing its operations in India and the UK Continental Shelf.
"The board has assessed many options to maximise value for our shareholders and the proposed sale of the Cooper-Eromanga Basin assets to Doriemus ensures that Oilex retains material leverage to the Cooper-Eromanga Basin assets without the associated funding burden and consequential dilution. The decision also reflects Oilex's dominant European shareholder base and trading volumes on the London AIM," said Managing Director Joe Salomon.
Shares in Oilex - which is based in Perth, Australia - were up 5.0% at 0.18 pence on Wednesday in London. The stock closed down 25% at AUD0.0030 in Sydney.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
