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Oilex Ltd shares bounced back on Monday after the company said that the Gujarat Pollution Control Board has authorised the use of the early gas facility and revoked the production halt at the Cambay field.
Shares were up 14% at 0.29 pence each on Monday in London, having fallen as much as 26% in morning trade.
Oilex shares fell after the Perth-based developer of natural gas assets early Monday said a licensing issue was preventing the restart of production at its Cambay field in India.
Oilex said that the pollution control board was questing whether a new Environmental Clearance Certificate issued by India's Ministry of Environment, Forest & Climate Change authorises the use of the early gas production facility on the Cambay C-73 wellsite.
The GPCB was raising the issue ‘since the EGPF is not specifically referenced’. Oilex, however, insisted that the facility is mentioned and authorised under clause 17 of the certificate.
The company also said that it had enlisted the support of the Ministry of Environment, Forest & Climate Change and the Directorate General of Hydrocarbons to resolve the issue.
However, shares recovered in midday trade after the firm said the pollution control board have confirmed the revocation of the Cambay production halt.
The GPCB's personnel will now visit the C-73 wellsite to remove the production flange seal in the coming days.
‘Subject to the early removal of the production flange seal by GPCB personnel, production will re-commence immediately thereafter. The resumption of gas production and re-establishment of cashflow is an important milestone for Oilex's Indian operations, and we look forward to contributing to India's indigenous gas supplies,’ said Chief Executive Roland Wessel.
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