Oilex - OEX Stream Log

Because I am on this board. It is a stream of what is posted on LSE and III. I look at this page because I am not a member of the other two sites and it is easier to have one page open and be able to read what people are saying.

Graham, You need to post on the LSE board or the III board for the others on this stream to see.

Testing testing testing. OMMMMMMMMMMMMMM

Oilex Ltd (ASX: OEX, AIM: OEX) (Oilex) announces that pursuant to the Sale and Purchase Agreement (SPA) entered into with Magna Energy Limited (Magna) on 9 August 2013, the SPA unwind process has been triggered. This means Magna will become a cornerstone investor in Oilex, acquiring a 12.46% equity interest in the enlarged share capital and Oilex will retain its full 45% direct interest in the Cambay Production Sharing Contract (PSC). Oilex refers to its various previous announcements (Announcements) in relation to the SPA with Magna whereby Oilex agreed to sell up to a 15% participating interest in the PSC incorporating its Tight Hydrocarbon Project in Gujarat, India for up to US$6M (Transaction). As set out in the Announcements and the 4 October 2013 Notice of Meeting (NoM), if the Government of India consent was not received prior to 1 May 2014, (Cut Off Date) the Transaction may be "unwound" and Oilex, to the extent practicable, is required to convert payments made by Magna to Oilex into shares in Oilex (Unwind Shares). Oilex Shareholders approved the Transaction at an Extraordinary General Meeting on 4 October 2013. Oilex was also granted a specific waiver of ASX Listing rule 7.2.3 to permit the issue of up to US$4M of Unwind Shares to Magna. This waiver expires on 4 June, 2014. Following the payment of an initial deposit of US$200,000 in August 2013, Magna subsequently paid Oilex a further US$3.8M, less applicable Indian withholdings, in accordance with the SPA. This equates to US$4M gross for an initial 10% participating interest in the PSC. While the Option for an additional 5% interest in the PSC was exercised by Magna, settlement was not effected pending receipt of Government of India approval of the transfer. As a consequence, this right has expired. Oilex confirms: (a) Government of India consent to the Transaction was not received by the Cut Off Date; and (b) it has received a letter from Magna, dated 1 May 2014, requesting Unwind Shares to be issued in accordance with the SPA. Oilex is in the process of issuing the required Unwind Shares, which amount to 73,505,090 ordinary shares in Oilex. The amount of Unwind Shares was determined in accordance with the SPA formulae and the agreed exchange rate of US$0.91 to AU$1, as set out in the NoM.

Magna gets 75000000 shares and we travel with the full 45% share of Cambay. I actually love this turnaround. Keeps us in control more and with Ron at the helm may we see blue skies in the future.

wait a few days for dust to settle then re-evaluate

i think it will make a bounce back to 6p+ in the run up to news... but looks like next installment is some weeks away, short termers will be selling off so as not to have money tied up.

Ericbal, perhaps you should have done some research before you built up your position!

Beachhut, you are so right, they dropped the price to get a load of shares. Unfortunately, being AIM, when buys exceed sells the mm's walk the price down if they want and when sells exceed buys it just goes down. Fair value will come out in the end if the frac is successful. Schlum are the best, I've work with them for years.

dunno who will win today though