Petroleum Africa
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Thursday, March 31, 2016
MX Oil updated its divestment of its investment in the Aje field offshore Nigeria. As reported earlier in the month, GEC Petroleum Development Co. (GPDC) is in the process of finalizing its funding to cover both the payments to secure its option and the initial payment due on exercise of the option to acquire MX’s investment in field.
While this funding is taking longer than expected, GPDC has informed the company that it is committed to this transaction and expects to have funds available in the coming days. Despite the delay, MX continues to believe that selling the asset to GPDC is an attractive option for its shareholders as the level of proceeds envisaged equates to a significant premium over the company’s current market capitalization.
Due to the company’s belief that selling the asset is the most attractive option, it is prepared to give GPDC some additional time to put its financing in place. Notwithstanding this delay, the company believes that its investment continues to become increasingly more attractive now that development funding up to first oil has been completed and expected oil production is imminent.
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