Oilex (ASX:OEX, LON:OEX) is targeting a $5 million capital raise with the sale of shares to existing investors.
The share offer is being partially underwritten by Australian brokers Patersons Securities and DJ Carmichael so the first $2.5mln of the raise is secured.
Shares will be priced at a 20% discount to the average price (volume weighted) for the five trading days prior to the share issue, and Oilex said eligible shareholders will be able to subscribe for up to $15,000 (£8,250) worth of new shares without incurring brokerage or transaction costs.
The subsequent cash injection will be used to support Oilex's activities in the Cambay basin, in India, where a well testing program is ongoing.
Ron Miller, Oilex managing director, told investors that production results are anticipated before the close of the new share offer.
"[The offer] is an opportunity for shareholders to participate in the further development and commercialisation of the Cambay Field," he said.
New funds will help pay for the installation of gas production facilities, well work-overs and reservoir engineering studies. It will also support the planning of a new work program for 2015, as well as a new third party assessment of the group's gas resources.
