Oilex is about to buy 55% of Cambay Field since 2016
Oilex (LON:OEX) shares rose sharply on Thursday. This is because companies have made progress towards resolution of a conflict over India’s gas projects, which they have aimed to ensure control over the years.
The AIM registered company has been considering purchasing 55% of the Cambay Field since 2016. However, the company spent the money in the midst of a dispute with the state-backed Gujarat State Petroleum Corporation Limited (GSPC). Regarding Indian courts.
Disagreements seem to lie on the path to a solution. Oilex is currently confirming that GSPC is giving green light for the sale of its stock at $2.2 million, and is the state government of Gujarat, confirming that Oilex is giving 100% of the field Masu.
Oil companies require further approval from the Government of India for sale, including finalizing binding sales and purchase agreements and finalizing financing arrangements. Oilex can resume fieldwork.
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“We are pleased to be able to work together to agree to this outcome, and in doing so we have achieved a major milestone by the company facing many challenges,” says Salomon.
“With the much-anticipated resolution, the company provides a route to assess the potential of critical gas resources identified on Cambay. OILEX and GSPC are linked to certain field costs and regulatory expenditures prior to 2018. We continue to work together to establish past pending costs.”
The news sent the company’s AIM registered shares to 142% or 0.4p.
