Oilex to Buy into East Irish Sea

Australia’s Oilex has penned deals covering further acquisitions in the East Irish Sea.

The company said on December 23 it had signed a binding term sheet to acquire 100% of the Doyle-Peel block, off the UK’s west coast, from UK junior Burgate Exploration and Production. It has also entered into an exclusivity agreement with Burgate and two other UK explorers, Comtrack and Simwell Resources, for 100% of the nearby Castletown licence.

The deals “provide an attractive entry into a proven gas fairway,” Oilex said in a stock exchange filing. They are in shallow waters near existing infrastructure, containing target reservoirs less than 2,000 metres in depth.

Oilex is set to pay £60,000 to Burgate for the Doyle-Peel block, as well as issue 42.5mn in shares worth £85,000.

The company announced in September it had entered into talks with the UK’s Koru Energy to take a 50% stake in the East Irish Sea's Knox, Lowry and Whitbeck gas discoveries.