24th Jun 2015 06:58
LONDON (Alliance News) - MX Oil PLC Wednesday said it expects to sign a deal "imminently" to acquire an indirect, non-operating minority interest in a substantial development-stage project outside of the Americas that is expected to begin oil production before the end of the year.
Earlier in June, the company said it was expecting to sign a deal outside of the Americas within a three week period to acquire a project that could help fund its work programmes in Mexico, the company's main focus.
MX Oil has now received a competent persons report regarding the "substantial" project, and based on the results the company is expecting to proceed with the deal to be signed "imminently". The transaction remains conditional on the completion of due diligence and is subject to contract.
"The CPR confirms the highly attractive fundamentals of this near-term producing asset, which if secured may provide MX Oil with a near-term cash generative platform from which to develop concessions we are targeting in Mexico," said Chief Executive Stefan Olivier.
MX Oil is focusing on Mexico's energy market, newly opened after 76 years of state monopoly and has, with its local partner, been listed as two of 16 participants in bid round one, phase three of the Mexican licensing round.
Back in May, MX Oil said it planned to target in the Mexican licensing round available onshore and mature fields with estimated resources totalling 100 million barrels of oil equivalent.
By Joshua Warner; [email protected]; @JoshAlliance
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