Oilex secures $6.8m for drilling programs

Oil and gas explorer Oilex has raised $6.8 million to fund development and drilling at its Cambay oilfield in India’s Cambay Basin.

The company today said it had placed more than 94 million shares with domestic and international institutional and sophisticated investors, at 7.2 cents per share.

The placement closed oversubscribed in Australia, Oilex said.

The money raised will go towards drilling at Cambay, as well as an aerial gravity survey over Oilex’ tenements in the Canning Basin.

Oilex directors Max Cozijn, Sundeep Bhandari and Ron Miller have collectively subscribed for 1.75 million of the placement’s shares, subject to stockholder approval.

The placement was undertaken by joint lead managers DJ Carmichael and Patersons Securities. RFC Ambrian acted for Oilex for the UK portion of the raising.

“We are very pleased with the strong support shown for the placement and delighted to welcome the new investors including a number of Australian-based institutions,” Oilex managing director Ron Miller said.

“This placement continues to support our ongoing efforts to deliver value from Cambay and Canning Basin assets.”

At 10:20AM, WST, Oilex shares had slipped 10.4 per cent, trading at 8.6 cents.