Oilex (LON:OEX, ASX:OEX) has raised £6 million to fund drilling on the Cambay tight gas project in Gujarat, India.
It has issued 30 million new shares at 20 pence each in a placing to professional investors in the UK.
The company has already announced its plans for a ‘proof-of-concept’ horizontal well on the Cambay Eocene reservoirs in Q1 2011.
The newly raised capital will allow Oilex to drill two more drilling, beyond this well.
"Over the past 12 months the company has made significant progress in unlocking the potential of the Cambay ‘tight’ Eocene reservoirs ,” managing director Bruce McCarthy said.
“Key to this success has been applying leading-edge North American tight reservoir industry expertise in assessing the contract area's reserves and resources,
“Oilex will be applying horizontal drilling and multi-stage fracture stimulation technology to improve flow rates and confirm commerciality of the Eocene tight reservoirs.”