Oilex (ASX:OEX, LON:OEX) has had its model of the geology of its...

Oilex (ASX:OEX, LON:OEX) has had its model of the geology of its Canning Basin acreage in Australia confirmed by the final interpretation of a recent airborne survey.

The final report, which comprised the newly acquired survey along with 2D seismic, regional gravity, magnetic, surface geological and well data, indicated the Wallal Graben is present in Oilex's three 100%-owned exploration areas.

Oilex now has the exclusive right to negotiate a formal exploration permit with the Western Australia government.

It is looking for a partner to help explore and develop the acreage and the new data will be incorporated into the discussions with prospective farminees, it said.

Negotiations are also ongoing with the traditional owners on Native Title Agreements and when these are finalised the regulatory process of conversion to a formal exploration permit will commence.

Ron Miller, Oilex’s managing director, said: "We are very pleased that the final interpretation of our recently acquired survey has proved the exploration hypothesis, representing a material prospectivity upgrade of 100%-owned acreage position.

“Early discussions with potential farminees highlighted the value of de-risking the acreage through the survey and this should facilitate discussion with interested parties.”