- British oil and gas company Doriemus (DOR) is now one step closer to purchasing Oilex’s (OEX) Cooper-Eromanga Basin portfolio
- Doriemus has now completed a conditional placement to raise $4.5 million for the acquisition
- The company also plans to go ahead with a priority offer to eligible Doriemus and Oilex shareholders to raise another $1.5 million
- The acquisition, however, is still subject on completion of due diligence and shareholder approval among other conditions
- Shares in both companies are steady today, with Doriemus shares priced at 4.5 cents apiece and Oilex shares worth 0.3 cents apiece
British oil and gas company Doriemus (DOR) is now one step closer to purchasing Oilex’s (OEX) Cooper-Eromanga Basin portfolio.
Doriemus has now completed a conditional placement to raise $4.5 million for the acquisition. This placement will go ahead if the acquisition is completed, which still requires Doriemus shareholder approval at a meeting next month.
Under the conditional placement, Doriemus will issue Chess Depository Interests (CDI) at an issue price of 3.5 cents apiece, along with one option for every three CDIs. The options will have an exercise price of 8 cents apiece and have a four year exercisable term.
“The strong support for this placement is a significant validation of the Company’s recently announced transaction to re-focus as a Cooper-Eromanga Basin oil and gas explorer/developer,” said Doriemus Chairman Keith Coughlan.
“The Company will target high return, high chance-of-success oil and gas opportunities in proven producing petroleum fairways with the benefit of an incoming technical team that has had considerable historic success in this basin.”
Oilex Managing Director Joe Salomon welcomed the conditional placement which brings the acquisition closer.
“The Doriemus capital raising, which was well supported by investors, is a critical milestone for the completion the spin-out of our Cooper-Eromanga assets. Oilex retains a significant interest in the value potential of the Cooper Eromanga assets through the 25.5 million Doriemus shares it will receive as consideration,” he said.
In addition, the Doriemus plans to go ahead with a priority offer to eligible Doriemus and Oilex shareholders to raise another $1.5 million.
Shares in both companies are steady today, with Doriemus shares priced at 4.5 cents apiece and Oilex shares worth 0.3 cents apiece.