Oilex moves closer to Cooper-Eromanga sale with Doriemus placement

Oilex updated the market on Friday, reporting that Doriemus has successfully completed a conditional bookbuild to raise AUD 4.5m (£2.3m) via a placement of shares and options.

The AIM and ASX-traded firm said the placement by Doriemus would, upon completion, satisfy a key condition of its proposed acquisition of Oilex’s portfolio of Cooper-Eromanga Basin assets, as it announced on 29 January.

It said the acquisition still remained subject to a number of other conditions.

The proposed placement would be completed by Doriemus at an issue price of 3.5 Australian cents per Doriemus CHESS depositary interest (CDI), together with one free option for every three CDIs subscribed for in the placement.

Each of the options would have an exercise price of eight Australian cents each, and could be exercised at any time up to four years from completion of the acquisition.

The options would be listed on the ASX by Doriemus, subject to meeting certain ASX listing requirements.

Oilex said the completion of the placement remained subject to Doriemus shareholder approval at a meeting on 12 March, and completion of the acquisition.

If completion of the acquisition did not occur, no CDIs or options will be issued under the placement.

Oilex initially announced the signing of a binding heads of agreement with the ASX-traded Doriemus for the proposed sale of all of its interests in the Cooper-Eromanga Basin on 29 January.

Among other conditions, Doriemus said it was required to complete a minimum capital raising of AUD 3.5m.

“The Doriemus capital raising, which was well supported by investors, is a critical milestone for the completion of the spin-out of our Cooper-Eromanga assets,” said managing director Joe Salomon.

“Oilex retains a significant interest in the value potential of the Cooper-Eromanga assets through the 25.5 million Doriemus shares it will receive as consideration.”

At 1210 GMT, shares in Oilex were down 2% in London at 0.16p.