Armour Energy to Acquire Oilex's Cooper-Eromanga Interests
Perth-based Oilex Ltd. has signed a binding agreement with Armour Energy Ltd. to sell all of its interests in the Cooper-Eromanga basin assets that it acquired from Senex Energy Ltd. last year.
The deal with Armour includes the transfer of a 79.33% interest (and an option to acquire the remaining interest) in exploration licenses PEL 112 and PEL 144. The deal also includes Oilex’s rights to acquire a 100% interest in 27 additional Petroleum Retention Licences (PRLs) located in South Australia.
Under the terms of the agreement signed between the companies, Armour will reimburse Oilex for A$125,000 of past costs incurred on the licenses within 60 days from closing and issue up to 34.5 million ordinary shares to Oilex priced on the volume-weighted average for a 90-day period from the date of execution of the agreement, amounting to approximately A$906,500. As a result, Oilex would hold between 4% and 5.5% of Armour’s issued share capital post‐acquisition.
PEL 112 and PEL 144 cover an area of 1,086 sq. km and 1,166 sq. km, respectively, and are located on the extension of the Western Flank oil fairway, the most important recent contributor to oil production in the Cooper Basin, which is considered to be one of Australia’s most prolific oil producing basins, having produced approximately 1.5 billion barrels of oil equivalent (Bboe) till date.
Following the successful completion of this deal, Oilex plans to focus on its existing operations in India and the United Kingdom.