Oilex has arranged the funding required for the re-fraccing of the Cambay 77H well in India.
Oilex has appointed the Bedrock / Manan consortium to plan the Cambay 77H well re-frac (and to assist in the new well program for H2 2022). The re-frac program has been finalised and quotations for services and equipment will be requested over the next 10 days in anticipation of the re-frac operation during Q1 2022. The objective of the re-frac is to prove up a fraccing methodology that will underpin the Cambay field development plan with optimised economics.
The Company has arranged an equity capital raising, with existing sophisticated and institutional shareholders, and clients of Novum Securities Limited, of £2.0 million (AUD$3.7 million) before expenses, through the issue of 1,422,590,303 new fully paid ordinary shares (Placement Shares) at GBP 0.14 pence (0.259 AUD cents) per share (Placement). The Placement will be completed in one tranche by 12 January 2022.
Funds raised from the Placement are intended to be applied to the re-fraccing of the Cambay 77H well, the continued development of the Company’s plans to undertake a drilling and testing appraisal program on the Cambay field, and the Company’s working capital base.
The Placement Shares, will rank pari passu in all respects with the existing shares. Application will be made in due course to the London Stock Exchange for the Placement Shares to be admitted to trading on AIM with a further announcement at that time. The applicable ASX Appendix 3B is to be submitted shortly.
Oilex’s Chief Executive Officer, Roland Wessel said:
'Progress is being made to establish a robust field development path for the Cambay field; the Cambay 77H re-frac is a key component of the field development plan. The results of the Cambay 77H re-frac will be available in Q2 2022 after the appropriate production testing period. In the meantime, the Company is preparing to re-commence gas production from existing wells. On behalf of the Company, I would like to thank the cornerstone shareholders for their continued support.'