Oilex finalises the sale of its interest in the Bhandut PSC
(OEX ) announced to investors that it has received all necessary approvals from the Government of India (GoI) for the sale of its Participating Interest (PI) in the Bhandut PSC.
Following the approval, all conditions precedent to the sale of its PI in Bhandut have been met with settlement of a $0.29m consideration from the buyer expected later this month.
Oilex announced in January 2020 that it had formally accepted an offer from Indian based Kiri and Company Logistics Private Limited (Kiri) to acquire the Company's PI in Bhandut.
Oilex held a 40% PI in the Bhandut Field, with GSPC holding the remaining PI. Oilex will receive $0.29m in cash for the sale of its PI and transfer of operatorship rights to Kiri.
Kiri previously expressed an interest in engaging the services of Oilex's office on a contract basis to review field production, stabilise operations, and initiate field re-development of the Bhandut PSC in accordance with the FDP. The Group said this process is now underway.
Oilex said the field has been ‘on care and maintenance’ for some time and has existing production facilities. It said Bhandut has been fully provided for in its financial statements.
"While completion of this transaction has taken longer than anticipated, primarily due to the impact of Covid-19, a positive outcome has now been achieved. This sale provides Oilex with additional current and future cash which will be applied to the existing Cambay and East Irish Sea projects,” commented Oilex's Managing Director, Mr Joe Salomon.
Shares in Oilex have seen an over four-fold increase in value since the beginning of 2021. The stock jumped by 11.67% in value this morning to 0.335p following the announcement.
Reasons to Follow OEX
Oilex’s strategy is to use its extensive technical and commercial expertise to explore, appraise and develop petroleum resources in prolific basins.
The group exclusively focuses on selected ‘Super Basins’ which have the potential to present multiple low-cost entry opportunities to Oilex.
Proven Success in Australia
Its new business development efforts bore fruit through the establishment of the focus on “super-basin areas” in Australia’s Cooper-Eromanga Basins and the UK’s Continental Shelf.
Future Growth Projects
Oilex said to investors that it ‘continues to review business opportunities in high potential areas’ through its contact base and its belief that good projects with good management can be funded.
Despite the ‘very challenging climate’, Oilex said it remains focused on returning value to shareholders with the short to medium focus of restoring value to the share price through sound management practices.
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