OEX.L Share News (OEX)

LONDON (Alliance News) - Oilex Ltd said on Wednesday that it has received notice that the Ministry of Petroleum and Natural Gas has approved the proposal for the grant of ten year extensions to the Cambay and Bhandut production sharing contracts.

The Director General of Hydrocarbons has been requested by the Ministry to hold the Management Committee Meeting and take the necessary action in accordance with the Government of India policy on the extension of small and medium sized discovered fields dated March 28, 2016.

"This is a major milestone for the company and follows more than a year of dedicated effort by the Oilex team with the strong support from the Government of India. The extension will provide intrinsic value to our Indian projects and the company, supported by increased interest from several Indian and foreign parties for possible participation in the Cambay PSC," said Managing Director Joe Salomon.

"Our efforts are now geared towards achieving commercial gas flow rates in the EP-IV formation. Our confidence in India as a country of immense potential remains resolute and the Company continues to evaluate additional project opportunities where we can apply international technologies and capitalise on the expertise of our team," Salomon added.

Shares in Oilex were up 4.2% at 0.25 pence each on Wednesday.