(Alliance News) - Oilex Ltd on Friday said the firm which has agreed to buy its interests in the Cooper-Eromanga basin has completed an equity raise, a "critical milestone" ahead of the sale of the petroleum exploration licences.
The oil and gas explorer in January said Sydney-listed Doriemus PLC agreed to buy Oilex's 79% stake in the PEL 112 and PEL 444 licenses located in the Cooper-Eromanga basin, onshore Australia.
Oilex advised that Doriemus has raised AUD5.4 million, about GBP2.8 million, through the share placing.
"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," Oilex explained.
The sale of the assets was 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.
Oilex 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."
Oilex shares were 2.2% lower at 0.16 pence each in London on Friday morning.
By Eric Cunha; ericcunha@alliancenews.com
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