03 October 2013
MAGNA cambay TRANSACTION update
Oilex Ltd (ASX: OEX, AIM: OEX. "Oilex"), refers to its announcement of 9 August 2013 (Announcement) in relation to its agreement (Sale Agreement) with Magna Energy Limited (Magna) whereby Oilex has agreed to sell up to a 15% participating interest in the Cambay Production Sharing Contract (Participating Interest) incorporating its Tight Hydrocarbon Project in Gujarat, India.
Under the Sale Agreement, Magna has the right to acquire:
(a) a 10% Participating Interest for US$4 million (Sale Interest); and
(b) an additional 5% Participating Interest for US$2 million (Option Interest).
Magna has already paid Oilex a US$ 200,000 deposit towards the Sale Interest.
Oilex is pleased to confirm, in satisfaction of a Sale Agreement condition precedent, it has received formal notice from each of the other Cambay joint venture participants that they have elected to waive pre-emption rights existing under the Cambay joint operating agreement.
The only remaining Sale Agreement condition precedent is the receipt of Shareholder Approval, which is scheduled to occur at an Extraordinary General Meeting scheduled for 4 October, 2013.
If Shareholder Approval is granted, Magna will pay Oilex the sum of US$3.8 million within 10 business days, being the balance of monies owing in respect of the Sale Interest. These monies are allocated to be spent on the Cambay-77H Drilling Activities under the Approved Work Program. The transfer of the Sale Interest will still be subject to approval of the Government of India and if this has not been satisfied prior to 1 May 2014 or such other date agreed by the parties, the consideration will be converted into shares in Oilex.
The Cambay-77H well will be the second multistage fracture simulated horizontal well drilled in the Cambay Project and is designed to confirm the applicability of North American technology for the development and production of tight hydrocarbon resources in India.
Magna has thirty days from the date upon which the US$3.8 Million for the Sale Interest is paid to Oilex to elect whether or not to acquire the Option Interest.
For and on behalf of the Board
Ron Miller
Managing Director
For further information, please contact:
Oilex Ltd Ron Miller, Managing Director Email: [email protected] Tel: +61 8 9485 3200 Australia |
RFC Ambrian Limited Nominated Adviser and AIM Broker Samantha Harrison Email: [email protected] Tel: +44 203 440 6800 UK |
Tavistock Communications Ed Portman Email: [email protected] Tel: +44 207 920 3150 UK |
