Oilex secures extension on petroleum contract

LONDON (ShareCast) - AIM-listed independent oil and gas exploration company Oilex has announced that the contract period expiry date for a joint petroleum contract has been extended by five months until June 15th.

The particular contract, known as the joint petroleum development area 06-103 production sharing contract" (JPDA 06-103), originally had a contract period expiry date of January 15th.

Oilex stated that engineering reviews and negotiations were continuing so as to secure a rig from several possible candidates for drilling the Bazartete Prospect as the third commitment well.

The group stated that it had assessed the Bazartete Prospect to have the potential to contain mean prospective oil resources of approximately 70m barrels with a 23% chance of success within JPDA 06-103.

Oilex has a 10% participating interest in the JPDA 06-103 joint venture.

The announcement comes less than two months after Oilex announced changes to senior management.

On December 3rd, the group announced that Dr Bruce McCarthy stepped down from the role of Managing Director to become a non-Executive Director. The company stated that he required an extended period of medical leave. Ron Miller, a non-Executive Director at the group, was named acting Managing Director and Robert Lerace was appointed Chief Financial Officer and Company Secretary.

Oilex's share price was down 8.51% to 5.38p at 11:24 on Friday morning.