Aje Field Update

MX Oil / Ticker: MXO / Index: AIM / Sector: Oil & Gas

 25 May 2016

MX Oil plc ("MX Oil' or the 'Company")

Aje field update

MX Oil plc, the AIM quoted oil and gas investing company, is pleased to note the publication today by Panoro Energy of its First Quarter Results for 2016 which includes an update on the Aje field. Panoro Energy is one of the partners in the development of the Aje field in which the Company has an indirect investment.

As previously announced, first oil was first produced from the Aje field on 3 May 2016. The Company has been advised that FPSO commissioning activities are currently being finalised and preparations are taking place for a 72 hour production test which is expected to be conducted in the near future. In the meantime, both the Aje 4 and Aje 5 wells have been brought on stream at varying choke rates. Aje 4 and Aje 5 have both produced in excess of 5,000 bopd each on a 32/64" choke, with good well head pressure. Gas lift has not as yet been used. It is expected that stabilised combined flow rates will be determined in the coming weeks, in conjunction with final mechanical optimisation, commissioning, and the Nigerian regulatory approval process. The flow rates exhibited to date indicate a highly productive reservoir and further updates will be made in due course.

In addition, geological models of the Aje field have been revised, using the new 3D seismic and the Aje-5 well data. This work supports the previously reported reserves and contingent resources volumes but with more confidence around the shape of the Cenomanian reservoir. This allows more precise planning for future Phase 2 drilling to be carried out, and possible well locations for Aje-6 and Aje-7 have been identified.

MX Oil's Chief Executive Officer, Stefan Olivier said:

 "Good progress is being made in order to prepare the Aje field for full production and the results to date are encouraging. We look forward to further updates on the stabilised flow rates in due course."

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