- Oilex (OEX) arranges funding for re-fracking of its Cambay 77H well in India through an equity capital raising
- The company is looking to raise two million pounds (A$3.7 million) through the issue of 1.4 million shares at 26 cents per share
- In addition, subscribers to the placement will be offered one free attaching unquoted option for every two placement shares subscribed for
- The re-frac program is reportedly finalised and quotations for services and equipment will be requested over the next 10 days in anticipation of the re-frac operation during Q1 2022
- On market close, Oilex is down 25 per cent and trading at 0.3 cents per share
Oilex (OEX) has arranged funding for the re-fracking of its Cambay 77H well in India through an equity capital raising.
The company is planning to raise £2.0 million (A$3.7 million), by issuing 1.4 million new fully paid ordinary shares at 26 cents each.
The raise will be for exisiting sophisticated and institutional shareholders and will be completed in one tranche, expected by January 12 .
Additionally, subscribers to the placement will reportedly be offered one free attaching unquoted option for every two placement shares subscribed for, resulting in the issue of an aggregate of 711,295,152 unquoted options.
These options are exercisable at 52 cents per share on or before December 31 2022.
Oilex said it has appointed the Bedrock / Manan consortium to plan the Cambay 77H well re-frac program.
The program has reportedly been finalised and quotations for services and equipment will be requested over 10 days in anticipation of the re-frac operation during the first quarter of 2022.
Oilex’s CEO, Roland Wessel, commented on the equity raise.
“Progress is being made to establish a robust field development path for the Cambay field; the Cambay 77H re-frac is a key component of the field development plan,” he said.
“The results of the Cambay 77H re-frac will be available in Q2 2022 after the appropriate production testing period. In the meantime, the company is preparing to re-commence gas production from existing wells.”
“On behalf of the company, I would like to thank the cornerstone shareholders for their continued support.”
On market close, Oilex was down 25 per cent and is trading at 0.3 cents per share.