Australian company Oilex has gained an extension to a recently signed exclusivity agreement with Koru Energy which could see it gain up to a 50% share in several discoveries in the East Irish Sea off the UK.
The exclusivity agreement signed last month originally ran until 30 September, however Oilex revealed Tuesday the agreement had been extended until 31 October.
The extension was sought as Oilex looks to confirm from the Australian Securities Exchange that certain listing rules do not apply to the proposed transaction, namely Listing Rules 11.1.2 and 11.1.3.
Koru has the exclusive right to acquire a 100% interest production licence P2459, Block 113/28a (Knox) and 113/29a (Lowry) and P2444 Block 110/3b (Whitbeck) from Reach Coal Seam Gas.
Last month Oilex paid a non-refundable £50,000 (US$61,411) exclusivity fee to Koru to secure its exclusive right to negotiate for a 50% share in the licences and is proposing a cash consideration of £500,000 which it has previously stated would allow Koru to complete the acquisition of the licences from Reach.
The licences contain the Knox and Lowry, and Whitbeck (KLW) gas discoveries which lie close to a subsea tie-back pipeline which delivers gas to Spirt Energy’s nearby North Morecambe gas production platform and terminal.
The shallow-water KLW discoveries were made between 1992 and 2009 by previous operators and successfully drill-stem tested, with Oilex noting the Knox and Lowry discoveries had flowed at 12.3 million and 22 million cubic feet per day, respectively.
