Half-year Report

28 September 2017

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

MX OIL PLC

"MX Oil" or the "Company"

Half-yearly report for the six months to 30 June 2017

MX Oil plc, the AIM quoted oil and gas investing company, is pleased to announce its unaudited half-year results for the six months to 30 June 2017.

Highlights

· Oil is being produced from two wells in the Aje Field, part of OML 113, in which the Company has an investment

· Production economics are steadily improving against the background of a rising oil price and reductions in operating costs

· The next phase of the Aje Field expansion, most likely with an increased focus on gas, is being developed

Chairman's statement

Introduction

During the first six months of 2017, MX Oil plc has continued to pursue its strategy as an oil and gas investing company. Currently, the Company is focused on principally on developing its investment in Nigeria. During the first six months of 2017, the Company made a total comprehensive loss of £800,000 (2016: £1,831,000). 

Review of activities

As has been previously announced, the Aje-4 well continues to produce, and the Aje-5 well has now re-commenced production after completion of a subsurface intervention - a lifting of oil has since taken place in July 2017. Also, given that the Aje Field is believed to hold significant resources of gas, the partnership is continuing to progress plans for the development of the gas and to discuss the best strategy for the development of the licence going forward. The recent increase in the oil price along with reductions in operating costs are helping to improve the economics of production.

On 12 September 2017, the Company announced that it was convening a general meeting of shareholders for Friday 29 September 2017 in order to seek approval to broaden its investing policy to enable the Company to invest in sectors adjacent to the natural resources sector. These sectors would include oil services, energy, power and related technologies. The Company believes that investments in these areas can have the potential to generate attractive returns on a lower risk basis than may be achieved in the traditional natural resources sector.

Outlook 

The Company has continued to make good progress and has an investment in an oil and gas licence that is currently in production. The Company is also actively reviewing other interesting investment opportunities that could create additional value for shareholders going forward.

N Lee 

Non-executive Chairman

For further information please visit www.mxoil.co.uk or contact:

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2017

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2017

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2017

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2017

NOTES TO THE HALF-YEARLY REPORT

1. The financial information set out in this interim report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The group's statutory financial statements for the period ended 31 December 2016, prepared under International Financial Reporting Standards (IFRS), have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The interim financial information has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) and on the same basis and using the same accounting policies as used in the financial statements for the year ended 31 December 2016. The interim financial statements have not been audited or reviewed in accordance with the International Standard on Review Engagement 2410 issued by the Auditing Practices Board.

The financial statements have been prepared on a going concern basis under the historical cost convention. The Directors believe that the going concern basis is appropriate for the preparation of the financial statements as the Company is in a position to meet all its liabilities as they fall due.

2. Other gains and losses

3. Earnings per share

The basic loss per share is calculated by dividing the loss attributable to equity shareholders by the weighted average number of shares in issue.

4. No interim dividend will be paid.

5. Copies of the interim report can be obtained from: The Company Secretary, MX Oil plc, 17th Floor, 110 Bishopsgate, London, EC2N 4AY and are available to view and download from the Company's website: www.mxoil.com.