Oilex dusts hands of Bhandut contract in India
Updated : 09:10
Oilex announced on Friday that the sale of its 40% participating interest in the Bhandut production sharing contract in India had now been completed, following the receipt of $0.29m from the buyer.
The AIM-traded firm said an additional payment of $28,000 was expected for final cash calls related to its interest in the contract.
On 28 January, Oilex said it had accepted an offer from India-based Kiri to acquire its interest in Bhandut.
Kiri also expressed an interest in engaging the services of Oilex's office on a contract basis to review field production, stabilise operations, and initiate field redevelopment of Bhandut under the field development plan, which was currently underway.
The field had been on care and maintenance for “some time”, and had existing production facilities.
Bhandut had been fully provided for in the company’s financial statements.
“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,” said managing director Joe Salomon.
“We wish Kiri success in their efforts on the Bhandut field.”
At 0851 BST, shares in Oilex were down 5.91% at 0.22p.