logo-loader

Oilex receives US$3.8mln from Magna for Cambay stake

Last updated: 01:52 26 Nov 2013 EST, First published: 02:52 26 Nov 2013 EST

no_picture_pai

Oil explorer Oilex (LON:OEX ASX:OEX) has received the US$3.8 mln balance from Magna Energy from the sale of a 10% participating interest in the Cambay field in India.

Magna has an option to acquire a further 5% for an additional US$2mln within the next 30 days.

Oilex will use the money to fund its 45% share of the costs of the upcoming Cambay-77H well.

Cambay-77H will be the second multi-stage fracture stimulated horizontal well at Cambay and is designed to establish proof of concept for the use of US fracking technology to release tight hydrocarbon resources in India.

After the 10% disposal to Magna, Oilex has a 35% equity interest and operatorship in the Cambay production sharing contract (PSC), which will drop to 30% if Magna exercises its option.

Ron Miller, Oilex’s managing director, said receipt of the funds was an important step forward towards drilling Cambay-77H and establishing additional production from the Cambay PSC.

“It demonstrates external confidence in the asset and we look forward to working with Magna to realise Cambay's full potential.

Oilex will retain no less than 30% equity in the Cambay PSC, should Magna exercise its option and that equates to approximately 50 million boe [barrels of oil equivalent] independently assessed 2C Contingent Resource of which 50% are liquid hydrocarbons and 50% is natural gas."

Poseidon Nickel signs binding agreement with Mineral Resources to divest...

Departing Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) CEO Craig Jones and incoming CEO Brendan Shalders join Proactive’s Jonathan Jackson to discuss the divestment of Lake Johnston to Mineral Resources Ltd (ASX:MIN). Jones, who has played a pivotal role in this strategic move, shared insights on...

5 hours, 23 minutes ago