Placing to raise £3.4 million and Nigeria update

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

31 May 2016

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

Placing to raise £3.4 million and Nigeria update

MX Oil, the AIM quoted oil and gas investing company, is pleased to announce that it has today raised £3,412,013 before expenses via a placing (the "Placing") of 341,201,258 new ordinary shares at a price of 1 pence per share (the "Placing Shares") with a small group of new investors. The Placing is at a premium to the closing price on Friday 27 May 2016 of 0.8 pence per share.

As previously announced, the production of oil has now commenced from the Aje Field within block OML 113, offshore Nigeria in which the Company has an indirect investment. Furthermore, on 25 May 2016, one of the partners in this licence, Panoro Energy, provided an encouraging update to the market. As the oil price continues to increase, it currently being around US$49 per barrel, the option of retaining this investment continues to become more attractive. The purpose of the Placing is therefore to ensure that the Company has the appropriate level of funding in place to enable it to do this whilst, at the same time, being able to fund its other activities and reduce its debt.

Application will be made for the Placing Shares to be admitted to trading on AIM ("Admission") and it is expected that Admission will become effective on or around 6 June 2016. The Placing Shares will rank pari passu with the existing ordinary shares of the Company (the "Ordinary Shares"). 

Following the Placing, the Company will have 1,141,141,331 Ordinary Shares in issue, each share carrying the right to one vote. The Company does not hold any Ordinary Shares in treasury. The above figure of 1,141,141,331 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

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

"I am pleased that investors are gaining confidence in the value of our Nigerian investment and the Company's potential. With oil production having now commenced offshore Nigeria and, against the background of an increasing oil price, it may make sense for the Company to retain its investment in the Aje Field and so, as a result of the Placing, we now have the flexibility to do so if this is in the best interests of the Company and its shareholders." 

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