23rd Sep 2016 08:09
LONDON (Alliance News) - Oil and gas investing company MX Oil PLC said Friday that it was looking forward to receiving revenue from its first producing oil and gas asset, as its interim loss more than doubled from the year before.
MX Oil reported a pretax loss of GBP1.8 million, compared to a loss of GBP718,000 in 2015. The company does not yet produce revenue.
AIM-listed MX Oil said the wider loss was due to increased activity year on year, most significantly the cancellation of licences in Mexico and the costs of fundraising.
MX Oil was awarded four licences for assets in Mexico at the start of the year, but decided to not proceed with any of them after they failed to deliver the expected value. The company has therefore shifted attention to the offshore Aje field in Nigeria, having agreed to acquire the company which indirectly holds the OML 113 licence which contains the field.
MX Oil said it raised over GBP7.0 million in the first half of the year via debt and equity issues, primarily to invest in the development of the Aje field.
Shares in MX Oil were down 8.1% at 1.03 pence early Friday.
By Adam Clark; [email protected]
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