- Oil and gas explorer Oilex (OEX) has sold all of its interests in the Cooper-Eromanga Basins to Armour Energy (AJQ)
- Armour Energy acquired the company’s assets for a consideration consisting of both shares and cash
- With the sale completed, Oilex will now focus on its assets in India, Indonesia and other new venture opportunities
- Oilex closed in the grey to trade for 0.2 cents per share
- Armour Energy closed 3.23 per cent higher to trade for 3.2 cents per share
Oil and gas explorer Oilex (OEX) has sold all of its interests in the Cooper-Eromanga Basins to Armour Energy (AJQ).
The company first announced its intention to sell the assets to Armour Energy back in late May, 2020. One the day of the announcement, Oilex’s share price had plummeted by 33.3 per cent by close of trading.
Armour Energy has now acquired 100 per cent of the issued capital in CoEra Limited, a wholly-owned subsidiary which holds all of Oilex’s interest in the Cooper-Eromanga Basins. These interests include 79.33 per cent interest in two Petroleum Exploration Licenses, with an option to acquire the remaining 20.67 per cent.
Armour Energy also gained the right to acquire 27 petroleum retention licenses from Senex.
As consideration for these assets, Armour Energy has issued 22.05 million of its shares to Oilex, and paid for past costs of $125,000 in cash. These represent Oilex’s share of the Tranche 1 consideration.
If the closing volume-weighted average price of Armour shares on the ASX fall below 3.7 cents 60 days after the sale’s completion, Armour Energy will be required to issue more of its shares to Oilex. This will ensure that Oilex receives a consideration value of $906,500.
With the sale now complete, Oilex will now focus on its assets in India, Indonesia, and other new venture opportunities.
Oilex’s Managing Director, Joe Salomon, commented on the state of the company’s current operations.
“Like most companies, our business is experiencing the impact of the COVID-19 pandemic, however, we remain confident of seeing our projects through to fruition. The company’s running costs continue to be minimised with the ongoing support of our employees and suppliers and shareholders,” he said.
Oilex closed in the grey for 0.2 cents per share.
Armour Energy closed 3.23 per cent higher to trade for 3.2 cents per share.