Oilex pushes back due date for South Australia acquisition by two months

Oilex announced on Monday that the date for the satisfaction of conditions for the acquisition of 27 petroleum retention licenses (PRLs) in the Cooper-Eromanga Basins from Senex Energy has been extended by two months to 29 February.

The AIM-traded firm said it was “well-advanced” in the negotiations to secure the completion of the acquisition of the PRLs, explaining that the extension would provide further time to finalise those negotiations and obtain the applicable regulatory approvals.

It had announced on 27 September that it had entered into a legally-binding term sheet with Senex in 27 PRLs in the Northern Oil and West Gas Fairway in the “world class” Cooper-Eromanga Basins in South Australia.

Oilex said it had been actively reviewing the Cooper-Eromanga basin for more than two years, adding that it was recognised as a “global super-basin”, and as the “number one” for above-ground development by IHS Markit.

It was set to acquire 100% of Senex's interest in the Northern Fairway PRLs for nominal consideration, and the assumption of existing abandonment liabilities, PRL fees and PRL expenditure targets.

The existing abandonment liabilities related to previous exploration drilling activities, including the cased and suspended Paning-2 tight gas discovery well, and associated with the Cordillo 3D seismic acquisition operating camp.

Oilex said the existing rehabilitation liabilities were estimated at approximately $1.1m, although it said the rehabilitation did not require immediate rectification.

“ The agreement with Senex is subject to various conditions including the approval of Oilex as operator of the Northern Fairway PRLs by the South Australian Government,” the board said in its statement.

“Subject to the receipt of regulatory approvals, Oilex now anticipates completion of the acquisition by the end of February.”

At 1549 GMT, shares in Oilex were up 1.54% at 0.2p.