Oilex Ltd (ASX:OEX, AIM:OEX) shares were bubbling higher as it provided an update on its agreement to purchase the Gujarat State Petroleum Company’s 55% participating interest in the Cambay production sharing contract and said it plans to relinquish its UK exploration licence that incorporates the Doyle and Peel structures in the UK East Irish Sea.
In anticipation of the Indian government’s ratification of the Cambay stake acquisition, Oilex said is “advancing the various steps needed” to restart production from the C-73 and C-77H wells, while also planning to workover and re-complete C-77H to boost production in early 2022.
Development programs for two new horizontal wells, called C-78 and C-79, is at “an advanced stage”, the company said, adding that it has requested quotations for well management services, subject to securing the necessary funding, to be carried out in the second half of next year.
The shares were up 37% to 0.27p by midday on Friday.
10.31am: GoldStone loses sparkle on elusive elution in Ghana
GoldStone Resources (AIM:GRL) Ltd shares lost some of their sparkle on Friday morning, falling 12% to 10p after revealing it has not been able to begin gold production from its Homase Mine as the Minerals Commission of Ghana has so far withheld permission for it to carry out elution at a rented facility.
Having overcome initially issues after commissioning in July and August that impacted the schedule, the heap leach pad crushing and conveyor systems are “now operating as planned” after mining 133,000 tonnes of ore and 385,700 tonnes of waste, with 87,300 tonnes of ore stacked on the heap leach pads.
Further mining has been paused whilst the existing stockpile is being depleted, but GoldStone said it expects to restart “shortly” and it is now looking to complete its own elution facility on site, “which we are endeavouring to complete in the shortest possible timeframe”.
Chief executive Emma Priestley said: “Whilst we are obviously disappointed that we have not been able to commence gold production, we are pleased with the continued progress on the Homase Mine and the rate at which this is now operating following some initial operational hurdles.”
It said a “very early stage and highly conditional approach” has been received in relation to a possible offer.
The board has decided to undertake a review of strategic options for the company “to maximise value for existing shareholders”, with a formal sale process one of the possible options. PwC has already been handled as financial adviser to manage the process.
Chairman and founder Larry Lipman said, “we recognise that this is a natural point, as we relaunch the business post covid, to undertake a strategic review, in order to maximise value for all shareholders”.
Elsewhere, Thor Mining PLC thundered higher after announcing that it has started its innovative drilling project at the Kapunda copper project in South Australia.
The drill programme is designed to trial environmentally friendly mining technology, with use of coiled-tube (CT) drilling techniques.
Thor managing director Nicole Galloway Warland said, based on geology and access, Kapunda “is an ideal location to be trialling the next generation of CT drilling, whilst collecting geological information on the copper-gold mineralisation”.