Oilex's Oz Sale Collapses

Oilex's deal to sell its assets in Australia's onshore Cooper-Eromanga basin to fellow Australian explorer Doriemus has collapsed, after the latter failed to secure funding for the deal, Oilex said in a statement on April 28.

"While we did not find a path to go forwards with Doriemus, we see strong interest from other companies and are currently in discussions with a number of parties to potentially move the projects forward in the best interests of all stakeholders," Oilex's managing director Joe Salomon said. 

The sale was agreed in January, comprising all Oilex's direct and indirect interests in the basin, including its 79.3% stakes in petroleum licences PEL 112 and PEL 444, with an option to acquire the remaining 20.7%, and its option for 27 petroleum retention licences from Senex Energy.

Doriemus' plan to raise A$3.5mn ($2.1mn) in capital to fund the acquisition fell through in late March, however. It continued talks with Oilex on a revised transaction structure and agreed on a new schedule for completing the deal. But these talks have now ended.

Oilex's purchase of Senex's rights at the 27 petroleum retention licences has also run into difficulty, with the pair agreeing on April 3 to push back the deadline for closing the transaction by six months to September. Oilex will pay Senex only a symbolic A$1 (US$0.61) per licence, but it has also pledged to cover existing abandonment liabilities and licence renewal fees, and meet Senex's expenditure targets.