HOUSTON, July 1 (Reuter) - Oilex Inc said Tuesday it had purchased a 40 percent stake in Funscape Corp (IMPN.OB) for $9.4 million.
An Oilex official said the company bought 2.68 million Funscape shares at $3.50 each. The official said the shares were purchased from the majority shareholder of Funscape, Rife Oil Properties, which is owned by Texas oilman Trey Rife.
Oilex, which is in the business of acquiring and developing low-risk oil and gas properties, said it will have two seats o the Funscape board. They will be filled by Oilex President Oliver Timmins and Richared Clark, an Oilex director.
Oilex said it has voting rights over its Funscape stake.
Oilex also said it had granted to Rife Oil an option to buy warrants for up to 500,00 Oilex shares at $1.50 a share, and up to an additional 500,000 shares at $2.50 each within three years.
Funscape, which owns, manufactures and sells portable swabbing units, recently acquired oil and gas leases in the Eromanga Basiun in Queensland, Australia.
Timmins said the acquisition of the Funscape stake ``further enhances appropriate control mechanisms for delivery of portable swabbing units that Oilex field operations require.''
Oilex said it will participate in developing Funscape's Quaternary oil recovery technology and the Eromanga Basin leases.
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