MX Oil PLC Update on Aje settlement (6773A)

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RNS Number : 6773A

MX Oil PLC

02 January 2018

2 January 2018

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

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

Update on Aje settlement

The Company notes the announcement that has been published today by Panoro Energy ("Panoro"), one of the partners in the Aje Field within block OML 113, offshore Nigeria, in which the Company has an investment, in connection with the signing of a settlement agreement regarding an ongoing dispute between the partners.

The Company is pleased that a settlement has now been reached and that the partners can now focus properly on the future development of the Aje Field.

Under the terms of the settlement agreement, the Company, by virtue of its investment in PR Oil and Gas Limited, is obliged to pay GBP7,790.34 within ten business days to Pan Petroleum Aje Limited, a wholly owned subsidiary of Panoro Energy ASA, to cover its share of the costs arising from three hearings at the High Court in connection with the litigation proceedings. The partners will also be required to pay an additional sum to the International Chamber of Commerce of approximately $100,000, subject to final costs of PPAL, which will be paid from proceeds of production liftings held in the joint venture export proceeds account. The Company's proportion of this sum is at its cost sharing interest of 6.6675% and, therefore, expected to be approximately $7,000.

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

 
 MX Oil PLC 
  Stefan Olivier, CEO          [phone] 
 Cairn Financial Advisers 
  LLP 
  (Nominated Adviser) 
  Jo Turner/James Caithie      [phone] 
 Cornhill Capital 
  (Broker) 
  Nick Bealer                  [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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January 02, 2018 04:14 ET (09:14 GMT)