Oilex said today proceeds from the capital raising would be used for major development and exploration drilling programs in India, Australia and Oman, and would enable Oilex to increase its exposure to its “flagship development and exploration assets” in northwestern India.

It had reached an agreement in principle with Australian broking firm Hartleys, as lead manager, to raise up to $A20 million through the placement of 23.6 million shares at $A0.85 per share – predominantly to North American, British, Asian and Australian institutional investors.

Managing director Bruce McCarthy said the proceeds of the A$20 million placement would be used to acquire an additional 15% interest in the Cambay Field and to complete the purchase of the Bhandut and Sabarmati interests.

It would also underpin the drilling of up to five appraisal and development wells in the Cambay field and fund the acquisition of seismic in India, Oman and the offshore Otway Basin, South Australia.

Oilex also announced that a rig had been contracted to start the first-phase drilling program on the Cambay field, with the first well expected to spud in next month, utilising the second and third firm slots of a drilling program on the recently contracted Dalma Energy MR-1 drilling rig.