12th Jun 2015 09:04
LONDON (Alliance News) - MX Oil PLC said Friday it has agreed an amendment to its joint venture agreement with local partner in Mexico Geo Estratos SA to increase its interest in any concessions or exploration and production contracts to 55% from 51%, and removing its obligation to fund Geo's share of costs.
In return for these improved terms, MX Oil has agreed that once a minimum of two assets have been delivered by Geo under the agreement it will not longer be required to work alongside MX Oil on an exclusive basis.
"These changes to our Mexican Joint Venture Agreement with our local partner Geo will increase MX Oil's interest at the same time as significantly reducing our share of development costs, thereby ensuring more value is retained for our shareholders. We are delighted with the progress we have made to date in Mexico," said Chief Executive Officer Stefan Olivier in a statement.
Shares in MX Oil are trading up 3.9% at 4.00 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
MXO.L