LONDON (ShareCast) - (Sharecast News) - Exploration and development group Oilex has entered into an agreement with Holloman Energy to acquire its 48.5% interest in the PEL 112 and 444 licenses in the Cooper-Eromanga Basins in South Australia.
Oilex will acquire 100% of its wholly-owned subsidiary, Holloman Petroleum, for a total consideration of AUD $145,000, satisfied by the issue of 40.41m ordinary shares and an AUD $24,250 cash payment.

The AIM-listed company said both blocks were located on extensions of the Western Flank oil fairway, the "most important" recent contributor to oil production in the Cooper Basin.

The fairway hosts more than 30% of the Cooper Basin oil reserves and has been a major industry focus for new drilling and field development over the last ten to 15 years.

Managing director Joe Salomon said: "The company has been actively reviewing the basin for more than two years and we anticipate today's 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."

As of 1035 BST, Oilex shares had shot up 27.83% to 0.15p.

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