Shares of OILEX LTD. (LON: OEX) fell 4.54% after completing the sale of its 40% participating interest in the Bhandut Production Sharing Contract to Indian firm Kiri and Company Logistics Private.
The company received US$290,000 from Kiri, and an additional payment of US$28,000 is due as part of the final cash calls related to Oilex's interest in the Bhandut PSC.
Oilex revealed that it had accepted Kiri’s offer on 28 January 2020 after the latter expressed in engaging the services of Oilex's office on a contractual basis to review field production, stabilise operations, and initiate field re-development of the Bhandut PSC in line with the Field Development Plan.
Joe Salomon, Oilex's Managing Director, said: “Finalisation of this transaction is very welcome as it provides additional working capital for the Company which can be applied towards future costs on the existing Cambay and East Irish Sea projects. We wish Kiri success in their efforts on the Bhandut field.”
The field was under care and maintenance for some time and has existing production facilities.
Oilex has reported a series of positive milestones recently, including the arrangement of funding for the acquisition of GSPC’s 55% participating interest in Cambay PSC.
The company also revealed that the Indian government had approved Cambay PSC’s work programme and budget estimates soon after completing the above acquisition.
Today’s sale has given Oilex a cash infusion that it can use to fund and advance its other projects.
Oilex share price.
Oilex shares fell 4.54% to trade at 0.21p, falling from Thursday’s closing price of 0.22p.
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