Oilex secures $13.5m financing for projects

Perth-based oil explorer Oilex has announced its has secured a £7.5 million ($13.5 million) three-year equity financing facility (EFF) with UK-based Darwin Strategic, for drilling at its Cambay onshore oil joint venture project in Gujarat, India.

The funds will also be used for initial exploration activity at its two Canning Basin sites.

Darwin Strategic has made more than £300 million available for AIM-listed companies to date.

Under the terms of the agreement, Oilex can issue placement shares to Darwin at any time over the next 36 months up to a total aggregate of £7.5 million.

In concurrence with the EFF, Oilex entered into a warrant agreement with Darwin to subscribe up to 3 million ordinary shares, exercisable at 15 cents any time in the next three years.

Four days ago, Oilex secured a rig from Essar Oilfield Services to be mobilised from Dubai to its Cambay-77-H site, to be delivered in the first quarter of 2014.

“We are delighted to receive the support of Darwin Strategic,” Oilex managing director Ron Miller said.

“This new £7.5 million facility gives Oilex access to cost effective, efficient financing, as needed and can be used or not used entirely at Oilex’s discretion.

“The EFF provided by Darwin allows Oilex to focus efforts on maximising shareholder value through development drilling in our Cambay asset and through initial exploration activity in the Canning Basin assets, while considerably reducing future financing risks and costs.” 

Shares in Oilex are steady at 4.7 cents per share, as of 10am, WST.