(Alliance News) - Oilex Ltd on Friday said it has agreed a deal to acquire 27 petroleum licences in the Cooper-Eromanga basins, South Australia, for a nominal consideration.
Senex Energy Ltd and its related parties currently own the 27 licences in the Northern Oil & West Gas Fairway which covers 2,445 square kilometres of the basin.
Oilex has been "actively reviewing the basin for more than two years" and Cooper-Eromanga was recongised as "number one for above ground development by IHS Markit".
Oilex added: "The company sees this transaction as a major step forward; it provides a material position in an established play fairway. The basin is well endowed with infrastructure providing for attractive low-cost discovery and development for Oilex. Equally, robust gas pricing in Eastern Australia provides a great basis for commercialisation of any discoveries."
Existing rehabilitation liabilities are estimated at USD1.1 million, Oilex said, and the deal is subject to approval from the South Australia government.
Shares in Oilex were 4.5% lower at 0.26 pence each in London on Friday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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