30th Sep 2015 12:56
LONDON (Alliance News) - MX Oil PLC Wednesday said it is eagerly looking toward December when it hopes commercial production will begin at its Nigerian project and it expects to be awarded new concessions in Mexico which could start the company's journey to becoming a major producer.
The oil and gas company focused on taking advantage of the re-opening of the Mexican energy sector reported a GBP718,000 pretax loss in the first six months of 2015, widening from the GBP234,000 loss a year earlier. The company does not currently generate any revenue.
The wider loss was caused by administrative expenses almost doubling and because it booked a GBP247,000 loss from its joint ventures, something it did not book at all a year ago.
MX Oil is looking ahead to December 2015 when the results from the licensing round in Mexico will be announced. Mexico opened the door to foreign companies after around 76 years of state monopoly, where MX hopes to secure two Type 1 blocks, which include onshore fields with estimated resources of around 100 million barrels of oil equivalent.
MX Oil also has a 5% stake in the producing Aje field in Nigeria, which is at the late-development stage where oil is being produced under flow-testing conditions. First commercial oil is expected in December when two wells should lead to initial peak production of around 11,000 barrels of oil per day.
"With first oil at Aje and the award of concessions in Mexico expected in December 2015, the second half of the year is likely to be game-changing for MX Oil. Depending on progress made, we could have a portfolio of company-making assets in Mexico and Nigeria," said Chief Executive Stefan Olivier.
MX Oil shares were up 3.8% to 2.44 pence per share on Wednesday.
By Joshua Warner; [email protected]; @JoshAlliance
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