Oilex (OEX) has announced the completion of the sale of its 40% participating interest in the Bhandut Production Sharing Contract following the receipt of $0.29 million from the buyer. 

The Indian Ocean Rim-focused oil and gas exploration and production firm said an additional $0.028m is expected for final cash calls related to its interest in the Bhandut PSC. 

Oilex announced back in January 2021 that it had accepted an offer from Indian based Kiri and Company Logistics Private Limited (Kiri) to acquire the Company's PI in Bhandut. 

In addition, Oilex said Kiri has also expressed a wider interest in engaging the services of Oilex's office on a contract basis in order to review field production, stabilise operations, and initiate field re-development of the Bhandut PSC in accordance with the Field Development Plan. The company noted that that this process is currently underway.  

Oilex said the Bhandut field has been in care and maintenance ‘for some time’ with existing production facilities and that it has been fully provided for in its financial statements. 

Commenting today, Managing Director of Oilex, Mr Joe Salomon said: "Finalisation of this transaction is very welcome as it provides additional working capital for the Company which can be applied towards future costs on the existing Cambay and East Irish Sea projects.” 

View from Vox 

Last month, Oilex said the Government of India had approved the Cambay PSC Work Program and Budget for the Indian financial year 2021-22 which runs from April to March in a move it described as “another positive step in re-establishing the work program. 

Oilex recently announced the details of its intention to acquire GPSC's 55% PI for US$2.2m, and the transaction has since received the approval of the state government of Gujarat.  

Following the completion of the Transaction, which is subject to the finalisation of a binding sales and purchase agreement with GSPC, and the Government of India's approval for the transfer of GSPC's PI, Oilex will hold a 100% participating interest in the Cambay PSC.  

Shares in Oilex have seen an over three-fold increase in value since the beginning of 2021. The stock was trading 4.35% lower at 0.22p this morning following the announcement. 

Reasons to  OEX   

Following  

Oilex’s strategy is to use its extensive technical and commercial expertise to explore, appraise and develop petroleum resources in prolific basins.  

Strategic Focus  

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 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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