10 Dec 2010 10:14
10 December 2010
OILEX PLACING RAISES UK£6.0 MILLION FOR INDIA PROJECT
Oilex Ltd is pleased to announce the conditional placing (the "Placing") of a total of 30,000,000 new ordinary shares (the "New Shares") at a price of 20p pence each (the "Placing Price") to sophisticated professional investors in the UK. The Placing will result in gross proceeds of £6.0million (approximately £5.7million or A$9.1million net of expenses). Ambrian Partners Limited acted as broker to the Placing.
The New Shares of 30,000,000 have been placed within the Company's existing authority to issue shares conditional upon admission to trading on AIM and the ASX ("Admission"). Application for Admission will be made to the London Stock Exchange and the ASX and is expected to occur on or around 15th December 2010 pending receipt of cleared funds and allotment of the New Shares.
Upon completion of the Placing, the New Shares will represent approximately 12% of the enlarged share capital of the Company.
The net proceeds of the Placing will be applied primarily to further drilling on the Cambay Production Sharing Contract "tight" Eocene reservoirs in Gujarat, India, and for working capital. This drilling will be in addition to the Company's first proof-of-concept horizontal well on the Cambay Eocene reservoirs planned for Q1 2011.
This is the announcement that was referred to in the Company's request for an ASX trading halt on 9th December 2010.
Commentary
Oilex's Managing Director, Dr Bruce McCarthy, said, "Over the past 12 months the Company has made significant progress in unlocking the potential of the Cambay "tight" Eocene reservoirs that extend over the 160 km2 (approximately 40,000 acres) contract area. Key to this success has been applying leading-edge North American tight reservoir industry expertise in assessing the contract area's reserves and resources. Oilex will be applying horizontal drilling and multi-stage fracture stimulation technology to improve flow rates and confirm commerciality of the Eocene tight reservoirs. The placement announced today will assist in providing funds to drill a further 2 wells to assess reservoir quality and distribution after the Company's initial proof-of-concept well in the Cambay contract area."
For further information, please contact:
Oilex Ltd +61 (0)8 9485 3200 (Western Australia) Bruce McCarthy Managing Director oilex@oilex.com.au Ben Clube, Finance Director oilex@oilex.com.au Ambrian Partners Limited +44 (0) 20 76344856 (UK)(Nominated Adviser and AIM Broker) Richard Swindells richard.swindells@ambrian.com Read Corporate +61 (0)8 9388 1474 (Western Australia) Nicholas Read nicholas@readcorporate.com.au Conduit PR +44 (0)20 74296610 (UK) Paul Youens +44 (0)7843 260623 (UK)paul@conduitpr.com Jonathan Charles +44 (0)7791 892509 (UK)jonathan@conduitpr.com
This announcement (the "Announcement"), and the information contained herein, is not for publication, release or distribution, in whole or in part, directly or indirectly, in or into the United States, Canada or Japan or any other jurisdiction in which such publication or distribution would be unlawful. This Announcement is for information purposes only and does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire shares in the capital of the Company in the United States, Canada or Japan or any other jurisdiction in which such an offer or solicitation is unlawful.
The shares in the Company referred to in this Announcement have not been and will not be registered under the United States Securities Act of 1933, as amended ("Securities Act") and may not be offered, sold or transferred, directly or indirectly, except in transactions exempt from, or not subject to, the registration requirements of the Securities Act and the securities laws of any state or other jurisdiction of the United States. There will be no public offer of securities of the Company in the United Kingdom, the United States or elsewhere.
This Announcement has been issued by, and is the sole responsibility of, the Company.
Ambrian Partners Limited, which is authorised and regulated by the Financial Services Authority in the United Kingdom (the "FSA"), is acting for the Company and no one else in connection with the Placing and will not be responsible to any other person for providing the protections afforded to its clients or for providing advice in relation to the subject matter of this announcement (including, without limitation, the Placing).
No representation or warranty express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by Ambrian Partners Limited or by any of its affiliates or agents as to or in relation to the accuracy or completeness of this Announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.
The distribution of this Announcement and the offering of the Placing Shares in certain jurisdictions may be restricted by law. No action has been taken by the Company that would permit an offering of such shares or possession or distribution of this Announcement or any other offering or publicity material relating to such shares in any jurisdiction where action for that purpose is required. Persons into whose possession this Announcement comes are required by the Company to inform themselves about, and to observe, such restrictions.
Certain statements in this Announcement may constitute forward-looking statements which are based on the Company's expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The information contained in this Announcement is subject to change without notice and the Company does not assume any responsibility or obligation to update publicly or review any of the forward-looking statements contained herein.
Any indication in this Announcement of the price at which ordinary shares have been bought or sold in the past cannot be relied upon as a guide to future performance. No statement in this Announcement is intended to be a profit forecast and no statement in this Announcement should be interpreted to mean that earnings per share of the Company for the current or future financial years would necessarily match or exceed the historical published earnings per share of the Company.
This Announcement does not constitute a recommendation regarding the Placing. The price of shares and the income from them may go down as well as up and investors may not get back the full amount invested on disposal of the shares.
The Placing Shares will not be admitted to trading on any stock exchange other than AIM and the ASX.
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