- Oilex (OEX) has signed a binding agreement to sell all of its interest in the Cooper-Eromanga Basin to Armour Energy (AJQ)
- Through the agreement, Armour will acquire 100 per cent of the issued capital of Oilex subsidiary, CoEra
- CoEra owns all of Oilex’s direct and indirect interests in the Cooper-Eromanga Basin, which include a 79.33 per cent stake in two petroleum exploration licence
- In exchange, Armour is issuing 34.5 million shares to Oilex, valued at $906,500
- Once the sale is finalised, Oilex will focus on developing its Indian and U.K. Continental Shelf assets
- Oilex lost a third of its value today, closing 33.3 per cent down to hit 0.2 cents per share
Oilex Limited (OEX) has signed a binding agreement to sell all of its interest in the Cooper-Eromanga Basin to Armour Energy (AJQ).
Cooper-Eromanga is Australia’s most prolific oil and gas basin, which stretches across South Australia, Northern Territory, Queensland and New South Wales.
Through the agreement, Armour will acquire 100 per cent of the issued capital of Oilex subsidiary, CoEra.
CoEra owns all of Oilex’s direct and indirect interests in the Cooper-Eromanga Basin. The assets include a 79.33 per cent direct interest in two petroleum exploration licence, as well as a further option to purchase the remaining interest.
CoEra also retains the right to acquire 27 petroleum retention licence’s from Senex, a Brisbane-based oil and natural gas company.
In exchange, Armour is issuing 34.5 million shares to Oilex, valued at $906,500, through two tranches.
In addition, Armour will make a $125,000 cash payment to Oilex, within 60 days of the deal completing.
Oilex acquired CoEra in June of last year. The subsidiary’s assets currently have an unaudited value of $331,000. After the deal finalises, Oilex will no longer hold any interest in the Cooper-Eromanga Basin.
Once the assets are sold, Oilex plans to focus on developing its Indian and UK Continental Shelf assets.
Managing Director and incoming Executive Chairman of Oilex, Joe Salomon, believes selling the assets is the right move for the company at this time.
“The board has pursued many options to achieve value for our shareholders without the associated funding burden and consequential dilution during these difficult industry conditions,” Joe said.
“Importantly, it allows the company to focus on its core assets in India and expand its portfolio in the UK continental shelf, which we look forward to progressing,” he continued.
Oilex lost a third of its value today, closing 33.3 per cent down to hit 0.2 cents per share.