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Tuesday, July 14, 2015
MX Oil agreed to invest in an indirect, non-operated, 5% revenue interest in the OML 113, offshore Nigeria. OML 113 is home to the Aje field, which includes flow tested discoveries where production is expected by January 2016. MX Oil’s investment is in line with the company’s strategy to acquire high impact near term production assets in proven oil and gas jurisdictions to build a cash generative platform.
In addition, the company announced the issue of 133,333,333 new ordinary shares via a placing at 4.5p per share to raise £6 million before expenses to provide additional working capital and funding for future capital expenditure and investment.
MX Oil’s CEO Stefan Olivier said: “We are highly encouraged by the reaction this acquisition has received from both existing and new investors, and we are pleased to now have institutions on our register, alongside our historic and supportive retail shareholder base. Aje, as an investment, ticks all the boxes: compelling economics in the current low oil price environment; a defined development plan in place targeting near term production; considerable exploration upside; located in a prolific hydrocarbon jurisdiction close to existing infrastructure; and acquired at a highly attractive price. To have been able to secure this acquisition on these terms is testament to the MX Oil management’s ability to source and secure interests in assets with company-making potential. We are looking forward to announcing a spud date for our Aje production well in the near term, and are excited by the prospect of bringing this field into production with our new partners and beginning to realize Aje’s excellent potential.
“This is a game-changing acquisition for MX Oil. It accelerates our transformation into a highly cash generative oil and gas investment company, and it provides a platform from which to fund the development of the conventional onshore concessions we are looking to secure in Mexico as part of the on-going Bid Round 1 licensing round. In Mexico, we have already been granted access to the data room and we are currently carrying out due diligence alongside our local partner Geo on a number of blocks. Concessions are due to be awarded in Mexico in December this year and we remain confident of winning two or more oil-producing blocks. Alongside expected production in Nigeria by January 2016, the next six months promise a great deal of newsflow which should excite our shareholders, as we look to create a leading oil and gas company.”
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