30th Sep 2014 14:52
LONDON (Alliance News) - MX Oil PLC Tuesday said it aims to take advantage of the Mexican energy sector, as it looks to the upcoming tender process in the country.
The company reported a pretax loss of GBP234,000 for the six months ended June 30, widened from a GBP3,000 loss in the comparable period of 2013.
The company does not earn any revenue, with the widened loss attributable to increased administrative costs of GBP268,000 from GBP63,000 a year earlier.
The company reported a cash balance of GBP220,000 at June 30.
"Having partnered with a first-class local operator, incorporated a joint venture company [Geo Estratos] qualified to participate in the upcoming licensing rounds in Mexico, and commenced discussions with regards to securing production sharing agreements for three highly attractive assets, much has been achieved in a short space of time," said Chief Executive Stefan Olivier.
"The six months under review have been a transformational period for the company...Today we are MX Oil, a company well placed to be an early mover in the vast Mexican energy sector," added Chairman Andrew Frangos.
MX Oil have a two-pronged strategy, the first of which will focus on targeting specific locations that can benefit from technical expertise from its joint venture partner. Due to the technical capabilities, these negotiations are anticipated to be non-competitive, and the contracts could be deliverable in the coming months, it said.
Secondly, its joint venture partner is preparing to participate in the forthcoming government tender process, the first of which are expected to offer 169 fields during the second-quarter of 2015, it said.
"We are equally well placed to go down both routes, and it is our belief that any single success has company making prospects. It is our ambition to secure multiple assets," said Frangos.
"Opportunities to gain ground-floor entry into what is effectively a new hydrocarbon frontier in a stable jurisdiction where vast quantities of proven reserves have already been identified, are extremely rare. We regard the reopening Mexican energy as one such opportunity and as a result we have therefore swiftly moved to position MX Oil among the first movers," he added.
"In our view, not many companies can match MX Oil's highly attractive mix of access to capital markets, operational capability on the ground, and first class local partners," said Frangos.
MX shares were down 2.7% to 3.43 pence per share Tuesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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