Final Results and Notice of AGM

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

29 June 2017

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

Final Results for the Year Ended 31 December 2016 and

Notice of AGM

MX Oil plc, the AIM quoted oil and gas investing company, announces its final results for the year ended 31 December 2016.

The Company will today post its Report and Accounts for the year ended 31 December 2016 ("Report and Accounts") to all shareholders together with a Notice of Annual General Meeting which will be held at the offices of Adams & Remers LLP, Quadrant House, 55-58 Pall Mall, London SW1Y 5JH on Monday 24 July 2017 at 11:30 a.m.

This announcement contains an extract of the Report and Accounts. A complete version of the Report and Account, which should be read in full, together with the Notice of Annual General Meeting will shortly be available from the Company's website www.mxoil.co.uk.

Enquiries:

Extract of the Report and Accounts

Chairman's Statement

Introduction

During the year, MX Oil plc has continued to pursue its strategy as an oil and gas investing company. The Group is now focused principally on its investment in Nigeria having, for the time being, decided not to proceed any further with its interests in Mexico.

Review of activities

In July 2015, the Group indirectly invested into a non-operated 5% revenue interest in OML 113, offshore Nigeria which includes the Aje Field. Two wells, Aje 4 and Aje 5, have now been drilled and, in May 2016, oil production commenced. Aje-4, the first well to go into production, has continued to produce since the date of first production. After an initial period of decline, associated with rising water, production has now stabilised. As previously announced, production from Aje-5 has been limited and has required subsurface intervention. This intervention is now completed and this well will be recommencing production.

The Group has, to date, been investing indirectly into OML 113 through Jacka Resources Nigeria Holdings Limited ("JRNH"), a wholly owned subsidiary of Jacka Resources Limited ("Jacka"). JRNH owns 100% of PR Oil and Gas Limited, the holder of the interest in OML 113. In August 2016, the Board decided to implement the final stage of its investment process by exercising its right to take full control of this investment through the acquisition of JRNH, for a nominal sum, from Jacka.

The Aje Field is believed to hold significant resources of gas and so in terms of next steps, the partnership has been progressing the field development plan for the development of the gas and has also held discussions with various potential gas off-takers. The partners in the Aje Field are therefore currently considering whether it would be more appropriate for the next stage of the field development to focus on gas production rather than drilling additional oil wells. It is expected that a CPR will be updated shortly with a focus on the gas using the new data obtained from the recent operational work on Aje 5. Previously, it was anticipated that a further well, Aje 6, would be drilled in the short term to increase oil production from the field, however, until the partners have concluded as to the most appropriate next steps, the drilling of this well will be deferred.

Also during 2016, the Group announced that it had signed a non-binding memorandum of understanding ("MOU") with the Government of Grenada with regard to making an investment in the exploration and development of hydrocarbons in a subterranean area adjoining the maritime boundary with Trinidad and Tobago. The area covered by the MOU includes underexplored prospective Grenada Tobago Basin acreage adjacent to the Venezuelan/Trinidadian Patao - Poinsettia gas trend. The MOU will form the basis for the negotiation of a more detailed Production Sharing Agreement ("PSA") which, if signed, is likely to occur during 2017. It is expected that the PSA will cover matters including, but not limited to, tenure and work programme including 2D seismic and, subject to these results proving encouraging, further exploratory phases including 3D seismic data acquisition. 

Management

During the year, the board has been further strengthened by the appointment of Richard Carter as a non-executive director.

Financing

During 2016, the Group has raised over £7 million. These funds have principally been used to complete the financing of the Group's share of expenditure in connection with the Aje Field and for general working capital purposes.

Outlook

The Group has made good progress and has an investment in an oil and gas licence which has now commenced production. The Group is also actively reviewing other interesting investment opportunities that could create additional value for shareholders going forward.

Nicholas Lee

Non-executive Chairman

Group Income Statement

For the year ended 31 December 2016

Group and Company Statement of Financial Position

As at 31 December 2016

Group Statement of Changes in Equity

For the year ended 31 December 2016

Group and Company Statements of Cash Flows

For the year ended 31 December 2016

Notes

1. General Information

The Company is a public limited company incorporated in the United Kingdom and its shares are listed on the AIM market of the London Stock Exchange.

The Company is an investing company, mainly investing in natural resources, minerals, metals, and oil and gas projects.

The above information is an extract from the Report and Accounts, which should be read in full together with the accompanying notes.

2. Principal Accounting Policies

The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied throughout all periods presented in the financial statements.

As in prior periods, the Group financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The financial statements have been prepared using the measurement bases specified by IFRS for each type of asset, liability, income and expense. The measurement bases are more fully described in the accounting policies below.

The current period covered by these financial statements is the year to 31 December 2016. The comparative figures relate to the year ended 31 December 2015.

The financial statements are presented in pounds sterling (£) which is the functional currency of the Group.

An overview of standards, amendments and interpretations to IFRSs issued but not yet effective, and which have not been adopted early by the Group are presented below under 'Statement of Compliance'.

Going Concern

The Group has cash balances at the period end of £334,000 and since the year end, the Group has raised £5 million of new funding. Furthermore, the Directors have prepared cash flow forecasts through to 30 September 2017 which demonstrate that the Group is able to meet its liabilities as they fall due. On this basis, the Directors have a reasonable expectation that the Group has adequate resources to continue operating for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the Group's financial statements.

3. Earnings Per Share

The weighted average number of shares used for calculating the diluted loss per share for 2015 and 2016 was the same as that used for calculating the basic loss per share as the effect of exercise of the outstanding share options was anti-dilutive.

4. Posting of Accounts and Notice of AGM

The Company will today post its Report and Accounts for the year ended 31 December 2016 to all shareholders together with a Notice of Annual General Meeting ("AGM").

The AGM will be held at the offices of Adams & Remers LLP, Quadrant House, 55-58 Pall Mall, London SW1Y 5JH on Monday 24 July 2017 at 11:30 a.m.

A full copy of the Annual Report and the Notice of AGM will shortly be available from the Company's website www.mxoil.co.uk.