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Shares of OILEX LTD. (LON: OEX) surged 45% after announcing that it was moving ahead with plans to return the Cambay field in India to production after completing the project’s 100% acquisition.
Oilex acquired the 55% stake owned by the Gujarat State Petroleum Company and expects the Government of India (GoI) to ratify the acquisition soon.
However, the oil company is moving ahead with plans to return the two wells at Cambay, known as C-73 and C-77H into production, and will be issuing a progress update on the same shortly.
The firm also plans to re-complete well C-7HH to boost its production capacity early next year.
Oilex also intends to drill two new wells at the site dubbed C-78 and C-79, with plans at an advanced stage since the company has already issued quotation requests from qualified contractors for the work.
Interestingly, investors seemed not to care about the company relinquishing its UK P2446 exploration licence covering the Doyle and Peel structures in the UK East Irish Sea.
The oil company clarified that it had failed to secure an extension of the license’s initial term from the UK Oil and Gas Authority.
Furthermore, the company has shifted its strategy to focus on mature gas field acquisitions and carbon capture and storage (CCS) opportunities. However, the UK exploration license does not align with the firm’s new strategy.
Roland Wessel, Oilex's Chief Executive Officer, said: “Regarding the Cambay field, and following the extended hiatus in production, the Company is focussed on the resumption of both production and field development activities to exploit the 926 BCF of contingent gas resources in a market of strengthening gas prices and demand. Subject to GoI ratification, the Company now has a 100% working interest in the Cambay field following the Acquisition with a commensurate increase in net contingent resources.”
Oilex share price.
Oilex shares soared 45% to trade at 0.29p, rising from Thursday’s closing price of 0.20p.
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