Oilexco
Encyclopedia
Oilexco Incorporated was an oil and gas
exploration and production company. The company's producing properties and exploration activities were located in the United Kingdom
Central North Sea
, specifically in the Outer Moray Firth
and Central Graben areas. In June 2007, oil production commenced from the Company’s first operated offshore field developments, the 100% owned Brenda Field and the 70% owned Nicol fields. The Company had a wholly owned subsidiary, Oilexco North Sea Limited (ONSL), which is based in Aberdeen
, Scotland. The company entered administration
in early 2009 and ONSL was eventually bought over
by independent British oil company Premier Oil
in June 2009.
On 25 March 2009, it was announced that Premier Oil
has proposed an acquisition of Oilexco North Sea Limited for $505m (£346m), launching a rights issue
for £171m and securing bank loans to fund the acquisition.
, according to the paper "The Beneficiaries of Saddam's Oil Vouchers: The List of 270".
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
exploration and production company. The company's producing properties and exploration activities were located in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
Central North Sea
North Sea
In the southwest, beyond the Straits of Dover, the North Sea becomes the English Channel connecting to the Atlantic Ocean. In the east, it connects to the Baltic Sea via the Skagerrak and Kattegat, narrow straits that separate Denmark from Norway and Sweden respectively...
, specifically in the Outer Moray Firth
Moray Firth
The Moray Firth is a roughly triangular inlet of the North Sea, north and east of Inverness, which is in the Highland council area of north of Scotland...
and Central Graben areas. In June 2007, oil production commenced from the Company’s first operated offshore field developments, the 100% owned Brenda Field and the 70% owned Nicol fields. The Company had a wholly owned subsidiary, Oilexco North Sea Limited (ONSL), which is based in Aberdeen
Aberdeen
Aberdeen is Scotland's third most populous city, one of Scotland's 32 local government council areas and the United Kingdom's 25th most populous city, with an official population estimate of ....
, Scotland. The company entered administration
Administration (insolvency)
As a legal concept, administration is a procedure under the insolvency laws of a number of common law jurisdictions. It functions as a rescue mechanism for insolvent entities and allows them to carry on running their business. The process – an alternative to liquidation – is often known as going...
in early 2009 and ONSL was eventually bought over
Takeover
In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...
by independent British oil company Premier Oil
Premier Oil
Premier Oil plc is an independent British UK oil company with gas and oil interests in the UK, Asia and Africa. It is devoted entirely to the 'upstream' sector of the industry - the exploitation of oil and gas - as opposed to the 'downstream' refining and retail sector...
in June 2009.
History
Oilexco was founded in 1994, and currently trades on the over-the-counter exchange (OTCBB) under the symbol "OILXF". On September 8, 2006, Oilexco was added to the TSX Composite Index. Their first day of trading as part of the index was September 18, 2006. On June 29, 2007 their shares began trading on the main market of the LSE.Problems at Oilexco North Sea Limited
On 7 January 2009, Oilexco North Sea Limited filed for administration due to financial constraints facing its North Sea operations.On 25 March 2009, it was announced that Premier Oil
Premier Oil
Premier Oil plc is an independent British UK oil company with gas and oil interests in the UK, Asia and Africa. It is devoted entirely to the 'upstream' sector of the industry - the exploitation of oil and gas - as opposed to the 'downstream' refining and retail sector...
has proposed an acquisition of Oilexco North Sea Limited for $505m (£346m), launching a rights issue
Rights issue
A rights issue is an issue of additional shares by a company to raise capital under a seasoned equity offering. The rights issue is a special form of shelf offering or shelf registration. With the issued rights, existing shareholders have the privilege to buy a specified number of new shares from...
for £171m and securing bank loans to fund the acquisition.
Saddam's oil vouchers
The company received 1 million barrels worth of oil vouchers in the United Nations Oil-for-Food ProgrammeOil-for-Food Programme
The Oil-for-Food Programme , established by the United Nations in 1995 was established with the stated intent to allow Iraq to sell oil on the world market in exchange for food, medicine, and other humanitarian needs for ordinary Iraqi citizens without allowing Iraq to boost its military...
, according to the paper "The Beneficiaries of Saddam's Oil Vouchers: The List of 270".