On 14 August 2019, Oilex Ltd announced that it is poised to acquire 100% interest in exploration licences PEL 112 and PEL 444 after entering into a second agreement with Terra Nova Energy (Australia) Pty Ltd to acquire a further 51.4997% interest in the licenses. As reported on 7 August 2019, Oilex has already entered into an agreement to acquire Holloman Energy Corporationâs subsidiary company Holloman Petroleum Pty Ltd, which holds 48.5003% interest in licenses. Both Terra Nova and Holloman had been looking to divest their interests in the Cooper-Eromanga Basin licenses.  Terra Nova closed the acquisition of an additional 30.833% interest from Perseville in 2016, increasing its interest held from 20.6667% to 51.4997%. However, a portion of Terra Nova shares are held directly and indirectly by a Perseville director, resulting in a degree of control of Terra Nova by Perseville. Therefore, the Oilex share purchase agreement involves deals with both Perseville and Terra Nova.  The share purchase agreement is initially for Oilex to acquire 30.833% interest in each licence. Oilex will pay a total consideration of AUD 92,499, comprising AUD 65,000 cash and the issue to 9,166,333 Oilex shares (at a deemed price of AUD 0.003). Oilex has already made a cash payment of AUD 17,750 with the balance due upon completion of the deal, which, as with the Holloman Energy deal, is scheduled on, or before, 30 September 2019.    Oilex also has the option to acquire a further 20.667% participating interest in the licences from Terra Nova over the next 12-15 months. The additional interest may be acquired for the total consideration of AUD 62,000, comprising 20,666,700 Oilex shares (at a deemed price of AUD 0.003). If the second option is settled, Oilex will hold 100% interest in PEL 112 and PEL 444.    The permits are located in the Western Flank Fairway and Terra Nova reports that there are a number of Namur and Birkhead structural prospects within both permits.    PEL 112 covers an area of 1,000 sq km and was awarded on 17 April 2003. Terra Nova has outlined the Milo, Libby and Drole structural prospects, which combined hold a potential 9 MMb oil in place. Milo is outlined as the primary target, with the largest potential resource and lowest risk. One exploration well is due in 2019. The well will likely target one of these prospects and be positioned from the 2012 Mulka 3D seismic survey, which is located in the north of the permit area.     The Wolfman 1 well was drilled within the Mulka survey area in 2013. It targeted a dip closure in the Namur Sandstone at around 1,200 m depth but was dry at location. Secondary, deeper, targets of the Birkhead and Hutton formations were also dry.    PEL 444 covers an area of 1,150 sq km and was also awarded on 13 April 2003. Terra Nova has identified the Maverick mid-Birkhead prospect which is considered as a key exploration target.Â  It has a potential 1.71 MMbo resource. The Crater and Moraine Namur prospects have also been outlined as potential targets. The prospects in PEL 444 have been identified from the merged Jasmin and Wingman seismic datasets, which Terra Nova has reported as providing high level mapping of the licence. Terra Nova considers there is potential for the Hoplite 1 oil play fairway to extend into PEL 444. One commitment well is due in 2021.    The Baikal 1 well was drilled in 2015, located approximately 8 km west of Hoplite 1. The well targeted this the oil play within the mid-Birkhead channel sands but was dry at location. However, the channel sands, which were mapped from seismic, were encountered and now provides qualification to the current exploration model.    PEL 112 and PEL 444 are held by Terra Nova Energy Australia Pty Ltd (a Claren Energy subsidiary - 51.4997% + Operator) and Holloman Petroleum Pty Ltd (48.5003%).Â  Upon completion of Oilex acquiring Holloman Petroleum Pty Ltd plus the interest held by Terra Nova, Oilex Ltd will hold 79.333% with the option to increase to 100% interest.
Oilex had entered into an agreement with Perseville Investing and Terra Nova Energy to acquire up to a further 51,4997% interest in petroleum exploration licences 112 and 444.