The parties, which were in discussions regarding a revised deal structure for the Cooper-Eromanga Basin assets, could not reach a consensus
Oilex terminates the proposed Cooper-Eromanga Basin deal with Doriemus. (Credit: 272447 from Pixabay)
Oilex and Doriemus have mutually agreed to terminate a proposed acquisition by the latter of the former’s interests in the onshore Cooper-Eromanga Basin in South Australia.
The parties, which were in discussions regarding a revised deal structure, could not reach a successful conclusion.
In January 2020, Oilex had signed a binding heads of agreement with Doriemus. As per the terms of the deal, Doriemus was to acquire 100% of Oilex’ fully-owned subsidiary CoEra.
According to Oilex, CoEra will hold a direct interest of 79.33% in the petroleum exploration licences PEL 112 and PEL 444 and the right to acquire 27 petroleum retention licenses (PRLs) from Senex Energy.
In September 2019, Oilex signed a deal with Senex Energy to acquire the latter’s PRLs in the Northern Oil and West Gas Fairway. However, the company decided to sell the assets to Doriemus in a move to focus on its core assets in India and to grow its portfolio in offshore UK.
Doriemus said that although it was driven by the potential of Coera’s underlying asset base, eventually its board decided that it cannot commit to acquiring the project on the revised terms offered considering the unprecedented uncertainty regarding funding, global markets, and oil price in the recent times.
Earlier this month, Oilex secured an extension to the date for satisfaction on the preceding conditions pertaining to the acquisition of the Cooper-Eromanga Basin PRLs from Senex Energy and some of its related entities to 27 September 2020.
Oilex said that it is currently in talks with various companies which are showing a strong interest in foraying into the Cooper-Eromanga project.
Oilex management comments on the sale of the Cooper-Eromanga Basin assets
Oilex managing director Joe Salomon said: “While we did not find a path to go forwards with Doriemus, we see strong support from other interested companies and are currently in discussions with a number of entities to potentially move the projects forward in the best interests of all stakeholders and we remain ready to proceed with a new party under similar terms to the Doriemus deal.”