Australian oil and gas exploration company Oilex has raised $3.4million for investment in its onshore Cambay tight hydrocarbon project in India.
The company confirmed it had successfully raised the funds through the placement of 68 million new shares.
Proceeds will be used mainly for costs associated with the Cambay project, in Gujarat, which produced 1,316 barrels of oil during the three-month period to 30 September.
The funding will also help boost a low level work programme in the Canning Basin in western Australia and general working capital costs.
Oilex also confirmed it had agreed to sell a 10% participating interest in the project – the company is the main operator with 45% interest – for $4 million to Magna Energy Limited, subject to Indian Government approval. Magna will also be given the option to purchase an additional 5% participating interest for $2m.