OILEX managing director David Archibald has resigned.
Mr Archibald, who is also Oilex’s largest shareholder and had been its greatest promoter, told WA Business News the decision to resign had been his but declined to comment any further.
His resignation took some parts of the market by surprise, given the enthusiasm Mr Archibald had for Oilex’s prospects. That enthusiasm aside, the company’s share price had been taking a battering in the past few months.
When Hartleys helped Oilex raise more than $8 million in November it was through an 83 cent a share placement. The company’s share price is now around 26 cents a share.
That price was not helped by a report Oilex released on its Rookwood play recently, indicating that it would not live up to the oil production levels they had set for it.
With Rookwood now looking unlikely to be a commercial prospect, attention will be focused on its other plays, in particular EPP27 in the Ottway Basin.
Mr Archibald had been very bullish on that prospect and, also, the Ottway basin.
The funds from the Hartleys placement were to fund the exploration of EPP27.
Oilex chairman and company secretary Max Cozijn said the company was in the process of negotiating for an offshore rig to start exploratory drilling on the permit.
Mr Cozijn said the company had not given up on Rookwood despite the disappointing results from the field.
“That field [Rookwood] is still the subject of some ongoing studies. There are still another four wells that need to be analysed,” he said.
