Oilex Ltd Issue of Event of Default Notice - Cambay PSC (4434P)
May 29 2018 - 1:00AM
UK Regulatory
TIDMOEX
RNS Number : 4434P
Oilex Ltd
29 May 2018
ASX Announcement
29 May 2018
ASX: OEX
AIM: OEX
Issue of Event of Default Notice - Cambay PSC
Oilex Ltd (the Company) advises that it has today issued an
Event of Default Notice (EoD Notice) to GSPC regarding the Cambay
PSC (Cambay) in the amount of equivalent US$3,054,832. The EoD
Notice, issued pursuant to the Joint Operating Agreement (JOA), is
a consequence of GSPC's ongoing failure to pay its participating
interest share of the expenses of the Cambay PSC.
In accordance with the JOA, GSPC can remedy its default by
settling the outstanding amounts. If this does not occur within 60
days, the Company may issue a notice whereby GSPC shall be
immediately deemed to have transferred all its participating
interest in the PSC to the non-defaulting parties, ie. Oilex.
An increase in Oilex's participating interest in Cambay from 45%
to 100% would greatly assist the Company in strategic farm-in
discussions with third parties. The Company has received several
informal expressions of interest from parties to participate in the
ongoing work programme and looks forward to updating the market
when appropriate.
Oilex remains committed to unlocking the significant resource
potential at Cambay by achieving commercial gas flow rates in the
EP-IV formation. The development of new oil and gas fields such as
Cambay is essential to meeting the Government of India's policy to
reduce reliance on imports. To ensure that the joint venture has
met and continues to meet the obligations and expectations of the
national government and its industry regulator, Oilex has borne the
full cost of many activities including the recent work to prepare a
Field Development Plan and securing government approval of the
proposal for a 10-year extension to the PSC.
While the Company is confident in its position, should GSPC fail
to comply with the EoD Notice and a legal or regulatory challenge
occurs, it may be necessary for Oilex to consider other remedial
strategies.
Managing Director, Joe Salomon said: "Securing government
approval for the application for the extension of Cambay PSC has
been a significant event for the Company, demanding a considerable
effort from our team. Whilst embarking on this new chapter towards
the development of Cambay, it is imperative the Company and its
partners are aligned and committed to unlocking Cambay's
significant value potential for all stakeholders. After exhausting
all reasonable efforts over an extended period, the issue of the
EoD Notice is both timely and necessary to move Cambay closer to
development. The Company has sought and will continue to seek
constructive resolution of all matters that obstruct the
development of Cambay. We remain appreciative of the continuing
support of our major shareholders in our efforts to remove
impediments and drive the project forward.
Reflecting the positive E&P investment climate fostered by
the Government of India, our confidence in India as a country of
immense potential remains unyielding."
For and on behalf of Oilex Ltd
Joe Salomon
Managing Director
For further information, please contact:
Investor AIM Broker AIM Nominated Media Enquires Media Enquiries
Enquiries Cornhill Adviser (UK) (Aus)
Oilex Capital Strand Hanson Vigo Communications Citadel-MAGNUS
Ltd Limited Limited Public Relations Michael
Joe Salomon Broker Nominated Patrick Weir
Managing Daniel Gee Adviser d'Ancona/Chris Email:
Director Email: Rory Murphy/Ritchie McMahon mweir@citadelmagnus.c
Email: danielg@cornhillcapital. Balmer Email: om
oilex@oilex.com.au com Email: patrick.dancona@vigo Tel: +618
Tel: +61 oilex@strandhanson.co comms.com 6160 4900
8 9485 Tel: +44 .uk chris.mcmahon@vigoco Australia
3200 20 3700 Tel: +44 mms.com
Australia 2500 20 7409 Tel: +44 20
UK 3494 7830 9700
UK
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END
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