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#1

31 January 2019
OILEX LTD

DECEMBER 2018 QUARTERLY REPORT

"HIGHLIGHTS

CAMBAY FIELD, ONSHORE GUJARAT, INDIA
» The Company’s plans for the 2019-20 work programme and budget (WP&B) to drill up to two vertical wells are well advanced. Upon the approvals of the WP&B, and subject to securing the necessary funding, the Company will order long lead items.

» During the quarter, the Company appeared in the High Court of Gujarat (High Court) with regard to lifting the ex-parte stay order delaying the implementation of the Event of Default Notice (EoD Notice) dated 29 May 2018.

» On 5 November 2018, the High Court of Gujarat issued and passed judgement further delaying the implementation of the EoD Notice subject to the fulfilment of certain conditions by Gujarat State Petroleum Corporation (GSPC).

» On 19 November 2018, the Company advised that it has received notice from the Singapore International Arbitration Centre (SIAC) that GSPC invoked the dispute resolution provisions of the Cambay Joint Operating Agreement (JOA).

» Following receipt of SIAC notice, the conditions imposed by the High Court to maintain the stay order were met.

» On 29 November 2018, the Company announced that GSPC and the Company had entered into commercial negotiations in order to avoid the matter going to arbitration.

» As at the date of this report, the discussions between Oilex and GSPC regarding a potential commercial settlement, and to enable a drilling programme to proceed, remain ongoing.

» In the December 2018 quarter, GSPC paid equivalent of US$0.29 million towards outstanding cash calls to Cambay JV.

» Gas production continues from C-73 at the Cambay Field."

OVERVIEW
The Company’s primary objective is to maximise shareholder value from its principal asset in the Cambay Basin, located onshore Gujarat State in India, whilst also continuing to review other opportunities to create value and diversify risk by adding new assets to the Company’s project portfolio.

To that end, Oilex continues to evaluate and implement a range of technical programme options to progress its main objective of accessing the significant gas resource present in siltstones in the EP-IV reservoir at the Company’s Cambay PSC. North American unconventional drilling, completion and stimulation technologies have been applied by the Joint Venture over the last six years with positive but commercially modest results and work is underway to optimise results for future work programmes. The current work programmes are focused on:

· Reaching a resolution for the outstanding cash calls payable by the Company’s Joint Venture partner GSPC;

· Preparing detailed work programmes, including new wells for implementation under the approved Field Development Plan (FDP),

· Arranging the necessary funding to implement the planned work programme; and

· Continuing to evaluate new opportunities to add to the Company’s project portfolio.

Full details via link: December 2018 Quarterly Report


#2

Interim Report 31 December 2018
RNS Number : 2790R
Oilex Ltd
27 February 2019

CONTENTS
Directors’ Report
Auditor’s Independence Declaration
Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
Condensed Consolidated Statement of Financial Position
Condensed Consolidated Statement of Changes in Equity
Condensed Consolidated Statement of Cash Flows
Notes to the Condensed Consolidated Interim Financial Report
Directors’ Declaration

Interim Report 31 December 2018


#3

31 July 2019

Equity Capital Raising of £0.34 Million

Oilex Ltd (Oilex or the Company) is pleased to announce that it has arranged an equity capital raising to secure funding of £0.34 million (A$0.6 million) through the placing of 257,329,999 new shares at 0.13 pence (A$0.2330) per share (Placing).

Funds raised from the Placing are intended to be applied towards the near to medium term working capital and corporate requirements of the Company including the resolution of outstanding issues with GSPC. Completion of the Placing is anticipated on before 13 August 2019 and is conditional, inter alia, upon admission of the shares the subject of the Placing to trading on AIM. The shares the subject of the Placing will rank pari passu in all respects with the existing shares. Application will be made in due course to the London Stock Exchange for the shares the subject of the Placing (Placing Shares) to be admitted to trading on AIM and the Company will make an announcement at that time. The Company will issue 237,355,731 of the Placing Shares pursuant to Listing Rule 7.1A with the balance of 19,974,268 shares to be issued pursuant to listing Rule 7.1.

The Company notes that it is awaiting the receipt of executed subscription agreements for some applicants in the capital raising which it anticipates to receive shortly.

Following admission of the Placing Shares, the Company’s share capital and total voting rights will comprise 2,844,648,000 shares. The Company does not hold any shares in treasury. Consequently, 2,844,648,000 is the figure which may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure and Transparency Rules.

Related Party Transaction

Republic Investment Management PTE Ltd (“Republic”) has subscribed for £195,265 (A$350,000) of the Placing. As a result of Republic’s interest in the Company, it is categorised as a Substantial Shareholder of the Company pursuant to the AIM Rules for Companies (AIM Rules). Accordingly, the participation of Republic in the Placing is classified as related party transaction pursuant to the AIM Rules.

The Directors of the Company, having consulted with Strand Hanson Limited, the Company’s Nominated Adviser, consider that the terms of the Placing with Republic are fair and reasonable insofar as the Company’s shareholders are concerned.

Managing Director, Joe Salomon, said "We thank our cornerstone shareholders for their ongoing support of the Company. We remain committed to an amicable resolution at Cambay and continue to work to resolve the ongoing dispute with our joint venture partner.

In the event that that commercial resolution is not achieved, the Company will seek to enforce its rights through the arbitration process."


#4

JUNE QUARTERLY REPORT 2019

HIGHLIGHTS

CAMBAY FIELD, ONSHORE GUJARAT, INDIA

» The Company’s plans for the 2019-20 work programme and budget (2020 WP&B) to drill up to two vertical wells are well advanced. Amongst other conditions, these wells are pending resolution of the dispute with GSPC and the necessary funding.

» During the December 2018 quarter, the Company announced that GSPC and the Company had entered into commercial negotiations in order to avoid the matter going to arbitration.

» The discussions between Oilex and GSPC regarding a potential commercial settlement have continued during the June 2019 quarter following the Indian national elections.

» In parallel with these discussions, the Company continues to follow the arbitration process with the Singapore International Arbitration Centre (SIAC) where it seeks to fully enforce its rights under the Joint Operating Agreement.

» In the June 2019 quarter, GSPC made no payments towards outstanding cash calls to the Cambay Joint Venture (Cambay JV).

» During the previous quarter, gas production from the Cambay Field was voluntarily shut-in.

BHANDUT FIELD, ONSHORE GUJARAT, INDIA
» The Bhandut Field remains on care and maintenance.

» During the quarter, GSPC continued with its sale process for their participating interest in Bhandut. The Company has a right of first refusal in regard to sale of GSPC’s participating interest. The Company is also in discussion with potential buyers for its participating interest.

» During the quarter, the joint venture partner, GSPC, made payments of US$0.095m towards outstanding cash calls.

CORPORATE
» During the quarter, the Company issued no shares or options.

» The Company continues to review new opportunities to create value for shareholders. Discussions are advanced on potential acquisitions in the Cooper Basin and the UK.

» Cash resources at 30 June 2019 were approximately $0.4 million.

» Subsequent to the end of the quarter, the Company amended its Series A loan of A$330,000 extending the loan repayment date from 26 July 2019 to 1 October 2019.

» Subsequent to the end of the quarter the Company announced that it has arranged an equity capital raising to secure funding of £0.34 million (A$0.6 million).

» During the quarter the Company announced a change in its registered office location.

OVERVIEW More via link below

https://www.investegate.co.uk/oilex-ltd–oex-/rns/june-quarterly-report-2019/201907310852423432H/


#5

7 August 2019
ASX: OEX
AIM: OEX

Acquisition in Cooper-Eromanga Basins

Oilex Ltd (“Oilex” or “the Company”) is pleased to announce that it has entered into an agreement with Holloman Energy Corporation (“HEC”) to acquire its 48.5003% interest in the PEL 112 and 444 license (the Licenses) in the world class Cooper-Eromanga Basins in South Australia.

Pursuant to the share purchase agreement entered into with HEC, the Company will acquire 100% of its wholly owned subsidiary, Holloman Petroleum Pty Ltd (“HPPL”) for gross consideration of 40,416,917 ordinary shares in the Company (Shares) at a deemed price of 0.3 cents and A$24,250 for a total consideration of A$145,500. The key terms of the share purchase agreement are set out below. The Company has today issued 24,250,150 ordinary shares as initial consideration (T1) with the final balance of 16,166,767 shares and A$24,250 payable at completion, which is to occur on or before 30 September 2019 (T2). The issue of the T2 shares by Oilex is subject to shareholder approval under Listing Rule 7.1.

The Company is in discussions with the remaining holders in the License to further increase its participating interest in PEL 112 and 444.

PEL 112 and PEL 444

The Licenses are held in two Petroleum Exploration Licenses (PELs) located in the South Australia section of the Cooper-Eromanga Basins. Both blocks are located on extensions of the Western Flank oil fairway, the most important recent contributor to oil production in the Cooper Basin. This fairway hosts over 30% of the Cooper Basin oil reserves and has been a major industry focus for new drilling and field development over the last 10 to 15 years. PEL 112 covers 1,086 square kilometres and PEL 444 covers 1166 square kilometres. Each PEL is currently in temporary suspension at the request of the current License holders (a provision with the South Australian government where work obligations are suspended for a fixed period) expiring on 31 July 2019 and for which the Company understands that a further extension will be sought. The PEL’s carry an obligation to drill one well each before January 2021 (PEL 112) and January 2022 (PEL 444) respectively.

Both blocks have modern 3D seismic surveys acquired by Holloman and its partners; 127 square kilometre in PEL 112 and 80 square kilometres in PEL 444. Subsequent to the 3D surveys one exploration well was drilled in each 3D area however neither well was successful with the structural integrity of the prospects drilled in question.

Undrilled structural prospects and leads have been identified in both blocks. Oilex’s intention is to re-evaluate the 3D seismic data using advanced IP which is designed to fast track the identification of stratigraphic features and geobodies. Importantly the Western Flank discoveries include many fluvial channel features and the stratigraphic section lends itself to the development of many more stratigraphically trapped hydrocarbon pools. Additional technologies available to Oilex include rapid, low cost reconnaissance tools aimed at testing the presence of hydrocarbon signatures in the atmosphere and in the soils overlying hydrocarbon accumulations.

The PEL’s are favourably situated given the proven westward migration of oil from the Patchawarra Trough to the Western Flank fields and particularly the presence of oil in a well just to the east of PEL 444. Oilex believes that the existing high-quality 3D data coupled with advanced evaluation tools will result in the identification of new targets for stratigraphic oil pools within these licenses.

Terra Nova Energy (Australia) Pty Ltd holds a beneficial interest in and is the operator of the Licences.

Key terms

The key terms of the share purchase agreement are as follows:
· HPPL assets and liabilities: On completion, HPPL must hold no assets or liabilities other than its interest in the Licenses and its portion of the bonds held by the applicable South Australian governmental agencies.
· Non-refundable deposit: The issue of the T1 shares is a non-refundable deposit.
· T2 Consideration: At completion, the Company will be required to issue the 16,166,767 T2 shares and a cash payment of $24,250 together with a cash payment of $48,500 in consideration for its portion of the bonds held by the applicable governmental agencies in respect of the Licenses.
· Conditions precedent: Completion remains subject to and conditional on the receipt of shareholder approval for the issue of the T2 shares; and the receipt of any consent, approval or signed document that is required to be obtained from any third-party or governmental agency in connection with the transaction. These conditions must be satisfied (or where permitted, waived) by no later than 30 September 2019. The necessary waivers and consents under the Joint Operating Agreement have been obtained.
· Top-Up Cash Consideration: If, before completion, the Company undertakes an equity raising in excess of A$1 million by an issue of shares at an issue price per share of less than the deemed price of A$0.003, then at completion, the Company must pay the vendor such cash consideration as is equal to the difference in value of the T1 and T2 shares at the deemed price calculated at the average issue price of the equity raising.

Managing Director, Joe Salomon, said: “We are pleased to announce this new acquisition in the world class Cooper-Eromanga Basins. The Company has been actively reviewing the basin for more than two years and we anticipate todays first step will be expanded on in the near future. The basin is well endowed with infrastructure providing for attractive low-cost discovery and development for Oilex.”

The Company remains committed to unlocking the potential of its Cambay Project in India and delivering value to its shareholders. The Cooper-Eromanga Basins provides an opportunity for shareholder value accretion while preserving significant exposure to the significant potential at Cambay."

Section 708A(5)(e) Notice and AIM Application

The issue of 24,250,150 shares to Holloman Energy Corporation (the Shares) is made under the Company’s Listing Rule 7.1 capacity. Oilex gives notice under section 708A(5)(e) of the Corporations Act 2001 (Cth) (Act) that:

  1.      Oilex issued the Shares without disclosure to investors under Part 6D.2 of the Act;
    
  2.      as at the date of this notice, Oilex has complied with:
    

(a) section 674 of the Act; and
(b) the provisions of Chapter 2M of the Act as they apply to Oilex; and

  1.      as at the date of this notice, there is no information that is 'excluded information' within the meaning of sections 708A(7) and 708A(8) of the Act.
    

Admission of 24,250,150 shares on AIM is expected to become effective and dealings to commence at 8.00 a.m. on 13 August 2019. Following Admission of these shares, the Company will have 2,611,568,151 shares on issue. The Company does not currently hold any shares in treasury. Accordingly, the total number of voting rights will be 2,611,568,151. In addition, please find attached the applicable ASX Appendix 3B.

Further information will be provided as it becomes available.

For and on behalf of Oilex Ltd

Joe Salomon
Managing Director

More via link below:

https://www.ii.co.uk/news/acquisition-in-cooper-eromanga-basins-rnsLSE20190807070002_14178953


#6

13 August 2019
ASX: OEX
AIM: OEX

ASX Trading Halt

Oilex Ltd (Oilex or the Company) advises that it has requested and been granted a trading halt on the Australian Stock Exchange effective from 13 August 2019, refer below. The acquisition, should it complete, would be deemed a Substantial Transaction pursuant to the AIM rules.

Trading in the Company’s ordinary securities on AIM will continue during this period.

For and on behalf of Oilex Ltd

https://www.ii.co.uk/news/asx-trading-halt-rnsLSE20190813074409_14186585


#7

13 August 2019
ASX: OEX
AIM: OEX

Re: Issue of Securities

Oilex Ltd (Oilex or the Company) advises that it has issued 257,329,999 ordinary shares at 0.13 pence per share (Capital Raising Shares) in regard to the £334,529 (A$599,622) equity capital raising as announced on 31 July 2019.

ASX Listing Rules, AIM Admission and Total Voting Rights

The issue of the Capital Raising Shares comprised 237,355,731 shares issued pursuant to ASX Listing Rule 7.1A with the balance of 19,974,268 shares issued pursuant to ASX Listing Rule 7.1. The issue of the Acquisition Shares was pursuant to ASX Listing Rule 7.1.

Application has been made to the London Stock Exchange plc for the admission of the New Ordinary Shares to trading on AIM (Admission). Admission of the Capital Raising Shares is expected to become effective and dealings to commence at 8.00 a.m. on 20 August 2019. Following Admission of these shares, the Company will have 2,868,898,150 shares in issue. The Company does not currently hold any shares in treasury. Accordingly, the total number of voting rights will be 2,868,898,150.

For and on behalf of Oilex Ltd

https://www.ii.co.uk/news/issue-of-securities-rnsLSE20190813091341_14186663


#8

14 August 2019
ASX: OEX
AIM: OEX

Further Acquisition in Cooper-Eromanga Basins

Oilex Ltd (“Oilex” or “the Company”) is pleased to announce that it has entered into an agreement with Perseville Investing Inc and Terra Nova Energy (Australia) Pty Ltd (TNA) (collectively, TNP) to acquire up to a further 51.4997% interest in the Petroleum Exploration Licenses (PELs) 112 and 444 licenses (the Licenses) in the world class Cooper-Eromanga Basins in South Australia.

Pursuant to the share purchase agreement entered into with TNP today, the Company will acquire a further participating interest of 30.833% in the Licenses for consideration of 9,166,333 ordinary shares in the Company at a deemed price of 0.3 cents and A$65,000 in cash for a total consideration of A$92,499. The Company has today issued 9,166,333 ordinary shares and paid A$18,750 in cash as initial consideration (T1) with the final balance of A$46,250 cash payable at completion, which is to occur on or before 30 September 2019 (T2).

In addition, the Company has been granted an Option by TNP for up to 15 months to acquire a further 20.6667% participating interest in the Licenses (Option). The Option can be exercised for consideration of 20,666,700 ordinary shares in the Company at a deemed price of 0.3 cents for a total consideration of A$62,000 (Option Exercise Shares). Further information on the terms and conditions of the Option is detailed in this announcement below.

The issue of the 9,166,333 ordinary shares as part of the T1 consideration has been made pursuant to the Company’s ASX Listing Rule 7.1 capacity. The issue of the Option Exercise Shares is subject to shareholder approval under ASX Listing Rule 7.1. The applicable Appendix 3B for the issue of the T1 shares will be released shortly.

Background on PEL 112 and PEL 444

On 7 August 2019, the Company announced it had entered into an agreement with Holloman Energy Corporation to acquire an initial 48.5003% interest in the Licenses which is anticipated to be completed on or before 30 September 2019.

The Licenses are located in the South Australia section of the Cooper-Eromanga Basins. Both Licenses are located on extensions of the Western Flank oil fairway, the most important recent contributor to oil production in the Cooper Basin. This fairway hosts over 30% of the Cooper Basin oil reserves and has been a major industry focus for new drilling and field development over the last 10 to 15 years. PEL 112 covers 1,086 square kilometres and PEL 444 covers 1166 square kilometres. Each PEL is currently in temporary suspension at the request of the current License holders (a provision with the South Australian government where work obligations are suspended for a fixed period) expiring on 31 July 2019 and for which the Company understands that a further extension will be sought. The PEL’s carry an obligation to drill one well each before January 2021 (PEL 112) and January 2022 (PEL 444) respectively.

Both blocks have modern 3D seismic surveys acquired by Holloman and its partners; 127 square kilometre in PEL 112 and 80 square kilometres in PEL 444. Subsequent to the 3D surveys, one exploration well was drilled in each 3D area however neither well was successful with the structural integrity of the prospects drilled in question.

Undrilled structural prospects and leads have been identified in both blocks. Oilex’s intention is to re-evaluate the 3D seismic data using advanced IP which is designed to fast track the identification of stratigraphic features and geobodies. Importantly the Western Flank discoveries include many fluvial channel features and the stratigraphic section lends itself to the development of many more stratigraphically trapped hydrocarbon pools. Additional technologies available to Oilex include rapid, low cost reconnaissance tools aimed at testing the presence of hydrocarbon signatures in the atmosphere and in the soils overlying hydrocarbon accumulations.

The Licenses are favourably situated given the proven westward migration of oil from the Patchawarra Trough to the Western Flank fields and particularly the presence of oil in a well just to the east of PEL 444. Oilex believes that the existing high-quality 3D data coupled with advanced evaluation tools will result in the identification of new targets for stratigraphic oil pools within these licenses.

Terra Nova Energy (Australia) Pty Ltd is the operator of the Licences until completion of T2.

Key terms of the TNP Agreement

The key terms of the share purchase agreement are as follows:
· T1 Non-refundable deposit: The issue of the 9,166,333 T1 shares and A$18,750 in cash is a non-refundable deposit.
· T2 Consideration: At completion, the Company will be required to make a final cash payment of $46,250 together with a cash payment of $30,833 in consideration for its portion of the bonds held by the applicable governmental agencies in respect of the Licenses.
· T2 Conditions Precedent: T2 Completion remains subject to the receipt of any consent, approval or signed document that is required to be obtained from any third-party or governmental agency in connection with the transaction. These conditions must be satisfied (or where permitted, waived) by no later than 30 September 2019. The necessary waivers and consents under the Joint Operating Agreement (JOA) have been obtained.
· Option: The Option to acquire a 20.6667% participating interest in the Licenses may be exercised for a period of three months commencing from the earlier of 12 months and, a notice issued by TNA. The Option exercise consideration shall comprise the issue of 20,666,700 Oilex shares and a cash payment of $20,667 in consideration for its portion of the bonds held by the applicable governmental agencies in respect of the Licenses. Where the Option is exercised, Oilex shall also refund any cash calls paid by TNA commencing from the date of execution of this Option agreement and the exercise of the Option. Aggregate cash calls in excess of A$50,000 paid by TNA prior to the exercise or expiry of the Option shall be payable by Oilex.
· Options Exercise Conditions Precedent: Exercise remains subject to and conditional on the receipt of shareholder approval for the issue of the 20,666,700 Oilex shares pursuant to the exercise of the Option; and the receipt of any consent, approval or signed document that is required to be obtained from any third-party or governmental agency in connection with the transaction. The necessary waivers and consents under the JOA have been obtained.
· Top-Up Cash Consideration: If, before completion of T2 or the exercise of the Option, as applicable, the Company undertakes an equity raising in excess of A$1 million by an issue of shares at an issue price per share of less than the deemed price of A$0.003, then at completion of T2 or the exercise of the Option, the Company must pay the vendor such cash consideration as is equal to the difference in value of the T1, T2 and Option Exercise Shares at the deemed price calculated at the average issue price of the equity raising.

Managing Director, Joe Salomon, said: “We are pleased to increase our exposure to the world class Cooper-Eromanga Basins. Our recent review of the Cooper Eromanga basins has led us to focus on two specific play types. This acquisition provides good exposure to the very successful Jurassic hosted oil fairway. 3D seismic has been the key to the very high success rate in this play and we look forward to applying our access to specialised advanced technologies to the two existing surveys searching for new hydrocarbon pools. Another added attraction is the low-cost associated with discovery and development in this area given that target depths occur at around 1,500 metres. The Company continues to consider further opportunities in the basin.”

The Company remains committed to unlocking the potential of its Cambay Project in India and delivering value to its shareholders. The Cooper-Eromanga Basins provides an opportunity for shareholder value accretion while preserving substantial exposure to the significant potential at Cambay."

Further information will be provided as it becomes available.

https://www.ii.co.uk/news/further-acquisition-in-cooper-eromanga-basins-rnsLSE20190814070003_14187807


#9

14 August 2019
ASX: OEX
AIM: OEX

Re: Issue of Consideration Securities for Cooper-Eromanga Basins Acquisition

Oilex Ltd (Oilex or the Company) advises that it has today issued 9,166,333 ordinary shares at a deemed price of A$0.003 per share (Acquisition Shares) pursuant to the agreement with Terra Nova Energy (Australia) Pty Ltd and Perseville Investing Inc (collectively, TNP) to acquire a further 30.8330% participating interest in PEL112 and PEL444 as announced earlier today.

Today’s acquisition together with the existing agreement with Holloman Energy Corporation (Holloman) as announced on 7 August 2019, will increase the Company’s participating interest in PEL112 and PEL444 to 79.3333% when completed. Furthermore, today’s agreement with TNP also provides the Company with an option, subject to certain terms and condition, to acquire a further 20.6667% and thereby increasing the Company’s participating interest in PEL112 and PEL444 to 100%, when completed. Completion of the TNP and Holloman agreements is to occur on or before 30 September 2019.

The issue of the Acquisition Shares was pursuant to ASX Listing Rule 7.1.

AIM Admission and Total Voting Rights

Application has been made to the London Stock Exchange plc for the admission of the Acquisition Shares to trading on AIM (Admission). Admission of the Acquisition Shares is expected to become effective and dealings to commence at 8.00 a.m. on 21 August 2019. Following Admission of these shares, the Company will have 2,878,064,483 shares in issue. The Company does not currently hold any shares in treasury. Accordingly, the total number of voting rights will be 2,878,064,483.

Listing Rule 3.10.5A Disclosure (more via link below)

https://www.ii.co.uk/news/issue-of-consideration-securities-rnsLSE20190814084412_14188434


#10

15 August 2019

ASX: OEX
AIM: OEX

Notice of Change of Interests of Substantial Holder

Please refer to the attached Form 604, for the notice of change of interests of substantial holder lodged by Republic Investment Management Pte Ltd (“Republic”).

http://www.rns-pdf.londonstockexchange.com/rns/1538J_1-2019-8-15.pdf

https://www.ii.co.uk/news/notice-of-change-of-interest-of-substantial-holder-rnsLSE20190815070005_14189578


#11

16 August 2019
ASX: OEX
AIM: OEX

JPDA Arbitration - Counterclaim for US$23.3 million

In October 2018, the Company announced the Autoridade Nacional Do Petroleo E Minerais (ANPM) had commenced arbitration proceedings against Oilex and its joint venture partners (Respondents), in regard to the JPDA production sharing contract (PSC).

The Company announces it has today submitted the Respondents First Memorial to the International Chamber of Commerce (ICC) in Singapore. In this regard, following a substantive legal and independent expert review, the joint venture has lodged a counterclaim against the ANPM for the amount US$23.3 million (plus interest) as damages arising from the wrongful termination of the PSC. Oilex holds a 10% participating interest in the JPDA joint venture.

The arbitration hearing is scheduled to commence on 10 February 2020.

Background

In November 2006, Oilex Ltd, via its wholly owned subsidiary Oilex (JPDA 06-103) Ltd (Oilex) and its Joint Venture partners entered into the PSC. The PSC effective date was 15 January 2007 and Oilex was appointed Operator.

On 12 July 2013, the Operator, on behalf of the Joint Venture, submitted to the ANPM a Request to Terminate the PSC by Mutual Agreement in accordance with the PSC terms and without Penalty or Claim (Request). The Request was issued as a result of ongoing uncertainty as to security of PSC tenure which arose as a result of a maritime boundary dispute between the Governments of Timor Leste and Australia.

On 15 May 2015, the ANPM issued a Notice of Intention to Terminate the PSC and subsequently, on 15 July 2015, issued a Notice of Termination and Demand for Payment. The demand for payment (100%) of the penalty claim of US$17.0 million (plus interest) reflected the ANPM’s estimate of the cost of exploration activities not undertaken in 2013, as well as certain local content obligations set out in the PSC. More recently, ANPM has sought to amend its claim to US$22.26 million.

On 17 October 2018, the Company announced it had received correspondence from ANPM, the body responsible for managing and regulating petroleum and mining activities in the Timor-Leste area, advising that it had submitted a Request for Arbitration (RFA) to the ICC. The RFA relates to matters associated with the termination of the PSC by the ANPM.

In addition to other matters, the Joint Venture considers it has made significant over expenditure in executing the PSC work programme and further, the ANPM failed to properly assess and award credit for such additional expenditure when terminating the PSC. Notwithstanding the Joint Venture considers no penalty payment is applicable, the parties made a number of unsuccessful attempts to settle the matter in dispute prior to the arbitration proceedings issuing.

The obligations and liabilities of the Joint Venture participants under the PSC are joint and several and all participants have provided parent company guarantees. The equity interest of the Joint Venture participants are:

Oilex (JPDA 06-103) Ltd (Operator)------------------------10%

Pan Pacific Petroleum (JPDA 06-103) Pty Ltd-----------15%

Japan Energy E&P JPDA Pty Ltd---------------------------15%

GSPC (JPDA) Limited #---------------------------------------20%

Videocon JPDA 06-103 Limited *#------------------------20%

Bharat PetroResources JPDA Ltd-------------------------20%

Total=100%

  •    The Company understands that the parent company Videocon Industries Ltd is subject to corporate insolvency proceedings and continues to trade under the supervision of an insolvency professional.
    
      A notice of default has been issued against both Videocon JPDA 06-103 Limited and GSPC (JPDA) Limited for their failure to pay the joint venture cash calls.
    

Commenting on the arbitration, Managing Director Mr Joe Salomon said that “it was disappointing that the ANPM elected to pursue arbitration. The US$23.3 million counter-claim further supports our view that the joint venture has previously and will continue to act in good faith, with previous offers to settle the matter being generous.”

https://www.ii.co.uk/news/jpda-arbitration-counterclaim-for-us233m-rnsLSE20190816115407_14192282


#12

20 August 2019
ASX: OEX
AIM: OEX

Notice of General Meeting

Oilex Ltd (the Company) advises that its General Meeting will be held at the Park Business Centre, 45 Ventnor Avenue, West Perth, Western Australia on Thursday 19 September 2019 at 10.00am AWST.

Attached is a copy of the Notice of Annual General Meeting, including an Explanatory Memorandum and Proxy Form, dispatched to shareholders today.

https://www.ii.co.uk/news/notice-of-general-meeting-19-september-2019-rnsLSE20190820070003_14194704