(Alliance News) - Oilex Ltd on Friday said it has completed the sale of a 40% interest in the Bhandut production sharing contract and has received USD290,000 from the buyer.
The Australian oil & gas exploration and production company said an additional payment of USD28,000 is expected for final cash calls related to Oilex's interest in the Bhandut.
At the end of January 2020, Oilex had accepted an offer from India-based Kiri & Co Logistics Private Ltd to acquire the interest in Bhandut. Kiri also had expressed an interest in engaging the services of Oilex's office on a contract basis to review field production, stabilise operations, and initiate field re-development of the Bhandut.
On Friday, Oilex said this process is currently underway. The field has been on care and maintenance for some time and has existing production facilities.
"Finalisation of this transaction is very welcome as it provides additional working capital for the company which can be applied towards future costs on the existing Cambay and East Irish Sea projects. We wish Kiri success in their efforts on the Bhandut field," said Managing Director Joe Salomon.
Oilex shares were trading 7.3% lower in London on Friday at 0.21 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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