Oilex Ltd shares fell on Monday after the firm said that a licensing issue is preventing the restart of production at its Cambay field in India.
Shares were down 14% at 0.22 pence each on Monday morning in London.
The Perth-based developer of natural gas assets said that the Gujarat Pollution Control Board is 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 is raising the issue ‘since the EGPF is not specifically referenced’. Oilex, however, insists that the facility is mentioned and authorised under clause 17 of the certificate.
The company said that it has enlisted the support of the Ministry of Environment, Forest & Climate Change and the Directorate General of Hydrocarbons to resolve the issue.
‘We look forward to an early resolution of this issue which is currently preventing the re-start of production on the Cambay field,’ Chief Executive Officer Roland Wessel said.
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