1 Oct 2019 07:00
ASX-RNS Announcement
1 October 2019
ASX: OEX
AIM: OEX
Extension of Exclusivity Agreement
The Board of Oilex Limited (the "Company") is pleased to announce that it has entered into an amendment agreement (Amendment) in regard to the exclusivity agreement with Koru Energy (KLW) Ltd ("Koru") as announced on 15 September 2019.
Pursuant to the Amendment, the exclusivity agreement with Koru has been extended from 30 September 2019 to 31 October 2019. The extension has been sought while the Company seeks confirmation from ASX that Listing Rules 11.1.2 and 11.1.3 will not apply to the proposed transaction.
Background
On 15 September 2019, a subsidiary of Koru Energy Limited, for a potential acquisition of up to a 50% relevant interest in the Knox and Lowry, and Whitbeck gas discoveries (the "KLW Gas Discoveries") in the East Irish Sea (EIS), offshore the United Kingdom ("Exclusivity Agreement").
The KLW Gas Discoveries are a series of shallow water gas accumulations that were discovered between 1992 and 2009 by the then operators and successfully drill-stem tested confirming discovered volumes that the Company and Koru would seek to bring into production, should the acquisition complete. The KLW Gas Discoveries are ideally located very close to a subsea tie-back pipeline which delivers gas to the nearby and recently refurbished North Morecambe Gas Production Platform and Terminal.
The EIS is a prolific basin which has produced more than 6TCF of gas to date with considerable existing gas production, gathering,
processing and transportation infrastructure. The KLW Gas Discoveries are located in known conventional shallow reservoirs in shallow water near existing EIS gathering and production infrastructure reducing the complexity, risk and cost of development.
Project Overview
The Knox and Lowry gas discovery projects are well advanced having successfully flowed gas when drill stem tested with reported raw gas flows of 12.3MMCFD and 22MMCFD, respectively. These well tests have demonstrated good quality reservoirs similar to nearby analogous fields that have been successfully developed and have delivered attractive production rates and gas recoveries.
The main reservoir interval in the EIS and in each of the KLW Gas Discoveries is the prolific Lower Triassic Ormskirk Sandstone Formation.
| Reservoir | Porosity % | Reservoir Depth | Gas Column Height | Trap Style | Raw GasTest Rate MMCFD | Gas Quality % | |||
ft | m | ft | m | N2 | CO2 | |||||
Knox | Omskirk | 18 | 1347 | 411 | 200 | 61 | Segmented fault block | 12.3 | 18 | 0.4 |
Lowry | Omskirk | 19 | 2100 | 640 | 208 | 63 | Titled fault block | 22 | 31 | 0.2 |
Whitbeck | Omskirk | 12 | 5383 | 1641 | 120 | 37 | 3-way faulted closure | Not tested | 14 | 0.1 |
Spirit Energy Limited ("Spirit"), a joint stock company owned by Centrica Plc and Bayern Gas Norge AS, is the owner and operator of the tie-back pipeline and North Morecambe gas processing terminal and has indicated strong support for the development of the KLW Gas Discoveries. Spirit also has certain back-in rights with respect to the KLW Gas Discoveries.
For and on behalf of Oilex Ltd
Joe Salomon
Managing Director
For further information, please contact:
Investor Enquires Oilex Ltd Joe Salomon Managing Director Email: oilex@oilex.com.au Tel: +61 8 9485 3200 Australia | AIM Broker Novum Securities Broker Colin Rowbury Email: crowbury@novumsecurities.com Tel: +44 20 7399 9427 UK | AIM Nominated Adviser Strand Hanson Limited Nominated Adviser Rory Murphy/Ritchie Balmer Email: oilex@strandhanson.co.uk Tel: +44 20 7409 3494 UK | Media Enquires (UK) Vigo Communications Public Relations Patrick d'Ancona/Chris McMahon Email: patrick.dancona@vigocomms.com chris.mcmahon@vigocomms.com Tel:+ 44 20 7390 0230 UK | Media Enquiries (Aus) Citadel-MAGNUS Michael Weir Email: mweir@citadelmagnus.com Tel: +618 6160 4900 Australia |