Less Ads, More Data, More Tools Register for FREE

Pin to quick picksOEX.L Share News (OEX)

  • There is currently no data for OEX

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

UPDATE: Oilex Hit By Allegations Made By 10% Shareholder (ALLISS)

Wed, 11th Nov 2015 16:18

LONDON (Alliance News) - Oilex Ltd on Wednesday said it will vigorously defend itself after shareholder Zeta Resources Ltd alleged that the company "failed to disclose material information" before Zeta's initial investment in the company, which was announced in July.

Oilex also said that in light of the change in its funding arrangement, it is likely that the beginning of the approved two-well drilling programme will be delayed. In addition, its joint venture partner on the Cambay project in India has "formally indicated" to Oilex that it wishes to "vary the approved work programme" by flowing Cambay-77 for six continuous months before embarking on the approved two-well drilling campaign.

"This variation has not been agreed by Oilex and discussions are ongoing in relation to this matter," the company said. Changes to the approved work programme would require approval from the Indian government.

"Therefore, should Oilex's funding arrangements be resolved it is possible that the commencement of the approved two-well drilling campaign may be further delayed as a result of the change to the work programme, subject to the approval of the government of India," Oilex said in a statement.

Oilex said that talks are continuing on the cash calls owed by Oilex's joint venture partner, which amounted to USD7.7 million at the end of October, an increase from the USD1.6 million at the end of June.

"Consideration is being given to a range of proposals that have been put forward by both parties. These discussions are incomplete at this time. However, the board is focussed on finding a solution that will enable the approved work programme to move forward," Oilex said.

Earlier Oilex had said: "Zeta has alleged that the company has failed to disclose material information to it prior to its initial investment and has contravened statutory provisions relating to misleading or deceptive conduct and continuous disclosure and rights issue disclosure requirements."

Under an agreement between the companies, Zeta was to subscribe for AUD4.2 million of 20-year, zero-coupon unsecured convertible loan notes, convertible into Oilex shares at Zeta's option at any time. That was subject to a conversion price of AUD0.0418 per share, by no later than Wednesday this week. In addition, Zeta was to subscribe for 124.0 million new shares at the same price, to enable the issue of those shares to be settled by no later than Thursday.

"As at the date of this announcement, Zeta has failed to settle the subscription for the convertible notes. Oilex will be considering, together with its external legal counsel, the remedies available to it arising out of Zeta's failure to settle the convertible notes," Oilex said.

Zeta currently owns 10.3% of Oilex.

"Whilst Zeta has at this stage only provided limited information to the company regarding the basis of these allegations, Oilex considers them to be without merit and they will be vigorously defended," Oilex said.

Shares in Oilex were down 59% at 0.590 pence late Wednesday afternoon.

By Samuel Agini; samagini@alliancenews.com; @samuelagini

Copyright 2015 Alliance News Limited. All Rights Reserved.

More News
26 Mar 2020 17:42

EXECUTIVE CHANGE SUMMARY: Shareholder To Become Executive Chair Of NMC

EXECUTIVE CHANGE SUMMARY: Shareholder To Become Executive Chair Of NMC

Read more
25 Mar 2020 11:55

Oilex Puts Assets Sale On Hold As Doriemus Fundraising Falls Through

Oilex Puts Assets Sale On Hold As Doriemus Fundraising Falls Through

Read more
16 Mar 2020 14:34

Oilex Pushes Back Loan Repayment Dates Amid Oil & Gas Sector Slump

Oilex Pushes Back Loan Repayment Dates Amid Oil & Gas Sector Slump

Read more
16 Mar 2020 11:20

Oilex shores up cash-on-hand as market conditions worsen

(Sharecast News) - Oilex has undertaken a number of "decisive steps" to proactively position it in response to the "challenging" trading conditions in the upstream oil and gas sector, together with volatile capital markets in general, it announced on Monday.

Read more
12 Mar 2020 13:31

Oilex Sale Of Australia Assets Closer After Doriemus General Meeting

Oilex Sale Of Australia Assets Closer After Doriemus General Meeting

Read more
3 Mar 2020 14:11

Oilex Closer To Cambay "Potential" As It GSPC Stake Sale Progresses

Oilex Closer To Cambay "Potential" As It GSPC Stake Sale Progresses

Read more
28 Feb 2020 15:31

Oilex Gets Extension To Close Cooper-Eromanga Licence Acquisition

Oilex Gets Extension To Close Cooper-Eromanga Licence Acquisition

Read more
21 Feb 2020 10:47

Oilex Closer To Selling Australia Assets As Doriemus Completes Placing

Oilex Closer To Selling Australia Assets As Doriemus Completes Placing

Read more
21 Feb 2020 07:50

Oilex moves closer to Cooper-Eromanga sale with Doriemus placement

(Sharecast News) - Oilex updated the market on Friday, reporting that Doriemus has successfully completed a conditional bookbuild to raise AUD 4.5m (?2.3m) via a placement of shares and options.

Read more
11 Feb 2020 14:00

Oilex Extends Chair Lingo's Operational Role Until March End

Oilex Extends Chair Lingo's Operational Role Until March End

Read more
11 Feb 2020 10:02

Oilex chairman extends expanded role for two months

(Sharecast News) - Oilex announced on Tuesday that the expanded operational role for its chairman, Bradley Lingo, was being extended by a further two months to 31 March.

Read more
4 Feb 2020 14:31

Oilex Secures New GBP350,000 Loan From Existing Shareholders

Oilex Secures New GBP350,000 Loan From Existing Shareholders

Read more
3 Feb 2020 12:37

Oilex Plans Drilling At Cambay; Sells Bhandut And Cooper-Eromanga

Oilex Plans Drilling At Cambay; Sells Bhandut And Cooper-Eromanga

Read more
29 Jan 2020 14:43

Oilex Agrees To Sale Of Cooper-Eromanga Interests To Doriemus

Oilex Agrees To Sale Of Cooper-Eromanga Interests To Doriemus

Read more
29 Jan 2020 13:56

Oilex exiting Australia with proposed sale of Cooper-Eromanga interests

(Sharecast News) - Oilex has signed a binding heads of agreement with Doriemus, an ASX-listed company, for the proposed sale of all of its interests in the Cooper-Eromanga Basin.

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.