(Alliance News) - Oilex Ltd on Friday said it is making progress on its field development and disposal plans in both in India and Australia.
The oil & gas exploration and production company said it plans to drill two vertical wells under its 2019-20 work programme at the Cambay field, onshore Gujarat, India. Amongst other conditions, these wells are currently pending finalisation of the settlement with Gujarat State Petroleum Corp and securing the necessary funding, Oilex said.
In the meantime, the company said Gujarat State Petroleum has started a sale process for its 55% participating interest in Cambay. Oilex said a preferred bidder has been identified by Gujarat State Petroleum, which has now been invited to finalise negotiations before seeking applicable regulatory approvals in India.
Oilex holds a 30% stake in Cambay and is an operator, with its Indian subsidiary, Oilex NL Holdings (India) Ltd, holding the remaining 15% of the field.
Also in India, Oilex holds 40% stake in the Bhandut field, with Gujarat State Petroleum holding the reminder. The company said previous drilling in the Bhandut field intersected a number of hydrocarbon zones, some of which produced historically and are now shut-in. The field is currently on care and maintenance and has existing production facilities, Oilex noted.
Gujarat State Petroleum has announced its intention to sell its stake in Bhandut, while Oilex also said it has agreed to sell its entire holding for USD140,000. The new operator of the field will be Kiri & Co Logistics Private Ltd, which bought stakes from both Gujarat State Petroleum and Oilex.
In addition, during the quarter to the end of 2019, Oilex said it agreed to sell its interest in Cooper-Eromanga basins in Australia to Doriemus PLC.
Subject to completion of this transaction, Doriemus proposed to appoint Oilex Chair Brad Lingo as the new managing director of Doriemus. Thus, Lingo will step down from the board of Oilex upon appointment of new chair.
Oilex shares were trading 6.0% lower on Monday in London at 0.16 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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