TIDMOEX
RNS Number : 2948O
Oilex Ltd
01 October 2019
For a printer friendly copy of this announcement, please click
on the link below to open a PDF version
http://www.rns-pdf.londonstockexchange.com/rns/2948O_1-2019-10-1.pdf
Contents
Chairman's
Review.....................................................................................................................................................................
2
Business
Review........................................................................................................................................................................
4
Permit
Schedule........................................................................................................................................................................
11
Directors'
Report.......................................................................................................................................................................
13
Remuneration Report -
Audited.................................................................................................................................................
22
Lead Auditor's Independence Declaration
................................................................................................................................
30
Consolidated Statement of Profit or Loss and Other Comprehensive
Income.............................................................................
31
Consolidated Statement of Financial
Position.............................................................................................................................
32
Consolidated Statement of Changes in
Equity............................................................................................................................
33
Consolidated Statement of Cash
Flows......................................................................................................................................
34
Notes to the Consolidated Financial
Statements.........................................................................................................................
35
Directors'
Declaration................................................................................................................................................................
73
Independent Audit
Report.........................................................................................................................................................
74
Shareholder
Information............................................................................................................................................................
79
Definitions..................................................................................................................................................................................
81
Corporate
Information...............................................................................................................................................................
82
Dear Shareholder,
The 2018 financial year was a year of both challenges and
delivery. The 2019 financial year has been similarly challenging.
There are two words that best summarize this past financial year -
resolve and resolution. For the better part of the financial year
the Company has been locked in an effort to manage the continuing
failure of our joint venture partner - Gujarat State Petroleum
Corporation Limited (GSPC) - to meet its obligations under the
Cambay Production Sharing Contract (Cambay PSC) in Gujarat State in
India. This ongoing failure ultimately led the Company to declare
GSPC to be in default under the Cambay Joint Operating Agreement
(JOA) in May 2018.
The Company's resolve reflects the significant undeveloped multi
TCF gas resource within the Cambay PSC- the Cambay Tight Gas
Project - that requires further investment and appraisal work to
ultimately demonstrate the project's commerciality. In terms of
delivery, although the Ministry of Petroleum and Natural Gas
approved a ten-year extension of the Cambay PSC in April 2018,
during the past financial year, the Company has been firmly of the
position that until such time as the disputes under the Cambay PSC
with GSPC were resolved and the events of default were remedied in
some form or fashion that no additional investment or any appraisal
work could be undertaken. This continuing circumstance has been the
ultimate test of the Company's conviction in the commercial
potential of the Cambay Tight Gas Project and a test of the
Company's resolve to (1) firstly, deliver a positive outcome for
shareholders and (2) secondly, secure additional projects that the
Company could build its future around based on its depth of
technical and commercial experience built to deliver the Cambay
Tight Gas Project. I can report that the resolve to deliver these
outcomes for shareholders has delivered resolution on both
fronts.
In the first instance, the Company believes it has now secured a
pathway to the ultimate resolution of the long-running dispute with
GSPC in the Cambay PSC which will allow the appraisal of the Cambay
Tight Gas Project to progress. On 9 September 2019, the Company
announced that it had entered into an agreement with GSPC and the
Director General of Hydrocarbons pursuant to which GSPC would
conduct a formal sale process to sell their interest in the Cambay
PSC and thereby exit the joint venture allowing a new committed
partner, once identified, to enter the project and for the project
to thus proceed. Under this agreement, GSPC is committed to
complete this sale process within 90-days of the agreement therefor
allowing the Company to begin planning to commence work on the
project in the coming calendar year.
Delivering this resolution enables the Company to get back to
the tools and start not only the planning but the actual appraisal
drilling, completion and stimulation program that the technical
studies undertaken with Schlumberger, Baker Hughes GE and Oilfield
Data Services Inc. outlined as the next stage of work programs to
prove the commerciality of the Cambay Tight Gas Project.
With respect to securing additional growth projects that deliver
value for shareholders, the Company has also delivered. After
exhaustive consideration of many alternatives, the Company selected
two very specific areas to focus on based on the Company's
technical and commercial knowledge, expertise and experience that
could deliver significant value recognition from the Company's
existing shareholder-base and attract significant interest from
existing and prospective new shareholders. These two focus areas
are two recognized 'Super Basins' that are very much open for
business to junior oil and gas companies with highly supportive
regulators, have a wealth of existing, high quality open file data
and present multiple low cost entry opportunities in terms of
production, development and exploration positions - the Australian
Cooper Basin and the UK Offshore Continental Shelf. The Company has
delivered in both focus areas.
In the Cooper Basin, the Company has secured 100% working
interest and operatorship of prime acreage positions in the proven
Western Flank Oil Fairway and the Northern Oil and Wet Gas Fairway
covering approximately 4,700 km2 (1.1 million acres) with
significant existing 3D seismic coverage, a significant undeveloped
tight discovery with 3C contingent resources of over 1 TCF and deep
portfolio of appraisal and exploration leads and prospects.
Similarly, in the UK Offshore, the Company has secured in the
prolific East Irish Sea the exclusive rights to acquire
participation of up to 50% participating interest in three
undeveloped gas discoveries immediately adjacent to the North
Morecombe Gas Production Platform and Gas Terminal and subsea
gathering pipeline - two of which have been drill stem tested and
flowed at 12.3 and 22 MMSCFD of low CO(2) raw gas. Both the
positions in the Cooper Basin and the UK offshore Continental
Shelf-East Irish Sea are important new platforms for the Company to
deliver growth and value for shareholders that are both real and
tangible.
Coming from the Company's resolve, there has been delivery of
the expected resolution of the issues that have prevented the
appraisal and with success the development of the Cambay Tight Gas
Project and delivery of two new platforms for growth and delivery
of value for shareholders. We expect that the coming year will see
delivery of much activity in each of these areas that will yield
significant results. It is our objective to align these three
platforms for growth in such a way as the maximize their ability to
deliver value across the Company's diverse shareholder base that
will maximize the value recognized by shareholders.
Finally, on behalf of the Board, I wish to thank our staff,
contractors, local communities, shareholders and stakeholders for
their ongoing support.
Mr B Lingo
Chairman
30 September 2019
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCUASNRKSARRRA
(END) Dow Jones Newswires
October 01, 2019 03:20 ET (07:20 GMT)
Synergia Energy (LSE:SYN)
Historical Stock Chart
From Apr 2024 to May 2024
Synergia Energy (LSE:SYN)
Historical Stock Chart
From May 2023 to May 2024