Oilex to raise $10.1m for exploration

West Perth-based Oilex plans to raise more than $10 million to fund the company's exploration and appraisal activities of its oil and gas assets.

The announcement is below:

The Directors of Oilex Ltd ("Oilex" or "the Company") are pleased to advise that the Company has resolved to raise up to $10.12 million through the issue of up to 44 million ordinary shares at an issue price of $0.23 per share. The shares will be issued predominantly to international and domestic institutional investors and sophisticated investor clients of Hartleys Limited.

The funds raised pursuant to the Issue will be applied to the Company's exploration and appraisal activities on its oil and gas assets.

Managing Director, Bruce McCarthy, said: "This is a very exciting period for Oilex with its participation in the imminent drilling of two very attractive large oil prospects to be drilled this year in the Timor Sea JPDA 06-103 contract area. Windows of opportunity may also develop in the near term in WA388P, Australia to expedite further evaluation of this emerging prospective gas block and in the West Kampar PSC, Indonesia to resume the work program".

The placement shares will be issued in two tranches. The first tranche of shares comprising of up to 24 million shares will be issued under the 15% placement capacity limit. The second tranche of shares comprising up to 20 million shares will be subject to shareholder approval to be obtained at a general meeting of shareholder on or around 16 November 2009.

This is the announcement that was referred to in the Company's request for a trading halt on 14 October 2009. For further details please refer to the presentation pack "Operations Update, October 2009" which is available on the company's website.