Oilex report4 Oct 2020 11:41
OILEX FY20 Results Show Net Assets Increase to $5.0m
Vox Markets
RNS Newswire
11:04, 1st October 2020
Oilex (OEX)
FY20 report highlighted the various stage of its progress across India, Indonesia, Australia and UK.
During the period, the main focus of the Company has been around developing existing projects in the portfolio, determining the best value realisation pathway for each project, resolving the long running problematic issues where necessary while reducing the Company’s cost base in both India and Australia.
Financial Highlights
Financial results for the period were unsurprising with exploration costs of $1.1m (FY19: $0.5m) with $2.0m ($FY19: $2.0m) of administration expenses.
Other costs $1.3m (FY19; Cost of sales $0.5m) includes an increase in write-down of inventory to net realisable values of $1.0m (FY19: $0.2m).
Loss before tax, for the pre-revenue explorer, was therefore $4.5m (FY19: $3.1m).
The net assets of the consolidated entity totalled $5.0m as at 30 June 2010 (FY19: $3.4m) with cash and cash equivalents, held by the Group as at 30 June 2020, decreased to $0.2m (FY19: 0.4m).
Operating Highlights
India - Cambay Field, Onshore Gujarat, (Oilex - 45%, Operator)
Development of the potential gas resources in the Cambay has been held up for some years as the result of a dispute with GSPC.
Oilex remains in discussion with a number of companies who have expressed interest in the Cambay PSC and its potential.
Oilex has developed a work plan to drill 2 vertical wells to test the EP-IV tight gas accumulation in a pilot programme involving stimulation of the reservoir to determine flow rate potential.? A Field Development Plan (“FDP”) has been approved by the government regulator. This was additionally submitted to the Government as a requirement for the application to secure a 10 year extension to the PSC beyond 2019.
The amended Cambay contract, reflecting the new expiry date of September 2029, is now pending finalisation by the Directorate General of Hydrocarbons.
It is intended that this initial pilot programme, subject to securing the necessary funding will be followed by a larger drilling programme, with the aim of aggregating sufficient production volumes to connect to the high-pressure pipelines which offer greater offtake stability and improved gas prices.
Any early production will utilise existing processing and storage facilities upgraded as required to provide a low-cost path to commercialisation. ?Further work on this work programme will restart once the GPSC sales process is complete.
Oilex is presently in the final stages in obtaining a new environmental clearance from the Ministry of Environment and Forest ?and Cabinet Committee to supercede the previous clearances already obtained under the previous regulatory requirements.? The clearances are necessary to recommence production at Cambay and are in support of the planned drilling programme at
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