MX Oil takes full control of its Nigerian Investment

Vanguard– MX Oil, the Alternative Investment Market, AIM, quoted oil and gas company, has decided to take full control of its investment in Nigeria, through the acquisition of Jacka Resources Nigeria, for a nominal sum, from Jacka.

This is coming on the heels of the company’s board decision to implement the final stage of its investment process in the facility.

According to the Chief Executive Officer, MX Oil’s, Stefan Olivier, he said “considering the progress that has been achieved in proving the value of the Aje Field and potential from the next phases of development, we believe that now is the right time to complete our investment in OML 113” The change in ultimate ownership of PR Oil and Gas Limited will need to be approved by the Department of Petroleum Resources in Nigeria. The application process for this approval has already commenced.

The Aje Field is an offshore field located in OML 113 in the western part of Nigeria in the Dahomey Basin. The field is situated in water depths ranging from 100 to 1,000 metres about 24 km from the coast. The Aje Field contains hydrocarbon resources in sandstone reservoirs in three main levels: a Turonian gas condensate reservoir, a Cenomanian oil reservoir, and an Albian gas condensate reservoir.

MX Oil is an AIM quoted resources company primarily targeting near term production assets in proven oil and gas jurisdictions such as Mexico and Nigeria.

Related News:MX Oil raises £2,500,000 for its Aje project as its FPSO arrives Nigeria

MX Oil, a company involved in developing the Aje field, offshore Nigeria, has raised raised £2,500,000 before expenses via a placing shares.

The company placed 333,333,333 ordinary shares at a price of 0.75 pence per share together with the issue of 66,666,667 warrants over ordinary shares at 1 pence to the Company’s broker and certain other parties. 

“The placing was oversubscribed and the proceeds will be used to make what is expected to be the final payment in connection with the company’s investment in Nigeria prior to the commencement of oil production,” MX Oil said in a statement.

The Aje field is expected to start production later this month upon the arrival of the Front Puffin FPSO. According to Marine Traffic, the FPSO is expected to arrive to its offshore Nigeria location on Wednesday, March 16.

 MX Oil explained the move by saying that the first payment due fromGEC Petroleum Development Company Limited (“GPDC”) with regard to its proposed purchase of the Company’s Nigerian investment is expected on or around March 14, 2016, and given the immediacy of the final funding round for the company’s Nigerian investment prior to first oil, the “company believed that it was prudent to have its own funds in place to ensure that this timetable could be met and so decided to proceed with the Placing.”

Leave a Comment

Your email address will not be published. Required fields are marked *

Special Discount

 *Limited period offer.

Sign up and get 10% off every epochem chemical purchase

Scroll to Top
Scroll to Top