Oilex' Oz Sale Runs into Trouble

Oilex said on March 24 that the sale of its Cooper-Eromanga basin operations in Australia had run into difficulty, after fellow Australian explorer Doriemus' plan for a A$3.5mn ($2.1mn) capital raising to pay for the assets fell through. 

The pair signed an initial agreement in late January on the sale, comprising all Oilex's direct and indirect interests in the onshore Cooper-Eromanga basin in the east of the country. This includes Oilex's 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.

There was strong funding support for Doriemus' capital raising during the book build in February, some investors have failed to provide the funds committed in their subscription agreements, Oilex said. As such, it does not anticipate the deal proceeding as initially planned.

The pair continue talks on a revised transaction structure and a new schedule for completing the sale, however, Oilex said.

"Both companies would benefit from the completion of a proposed transaction on Oilex's Cooper-Eromanga Basin interests and we are currently exploring alternative structures with Doriemus," Oilex managing director Joe Salomon said. "Further information will be provided as it becomes available."