Oz Oilex's H1 Loss Grows

Sydney-listed Oilex March 15 announced a net loss for the six months to December 31 (H1 2020) of A$2.02mn (US$1.25mn), higher than the loss of A$1.51mn in the same period of previous year.

The company did not recognise any revenue in H1 following the voluntary shut-in of the Cambay field in India Q1 2019. Last year, Oilex issued an event of default notice to its partner in Cambay project, India’s GSPC. The notice was a consequence of GSPC’s failure to pay its participating interest share of the expenses of the Cambay production contract. 

As part of the settlement, GSPC decided to sell its 55% stake in the Cambay project. Earlier this month, Oilex said it has declined the first right of refusal (ROFR) for GSPC’s 55% interest in the Cambay PSC. With the ROFR now declined by Oilex, GSPC can now move forward to execute the final sale agreement with the preferred bidder – there have been several – and make the applicable submissions to government of India.

Oilex said its plans for the 2020-21 work programme and budget at Cambay are well advanced and include the drilling of up to two vertical wells, subject to securing the necessary funding.

“The re-commencement of field operations is, amongst other matters, dependent on finalisation of the settlement agreed with GSPC and necessary financing,” the company said.