MX Oil PLC Update on Nigerian investment (8938O)

TIDMMXO

RNS Number : 8938O

MX Oil PLC

24 August 2017

24 August 2017

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

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

Update on Nigerian investment

The Company notes the Half Year and Second Quarter Report 2017 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. 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 carrying value of the Company's investment in OML 113 is based on accounting principles and a number of considerations including, inter alia, investment cost, forecast oil/gas prices and the Company's views on the future plans for the development of the licence. Furthermore, it should also be noted that the Company's initial investment in this licence represented a very significant discount to the amount that had been invested historically by other parties. Going forward, as the partnership's plans for the development of the licence progress and are further refined, and as other factors change, the Company's valuation of this investment may clearly be subject to adjustment. The Company understands that there continues to be a legal dispute between certain of the partners but believes that discussions are continuing as to the best way to resolve matters. The Company will provide a further update in due course.

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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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August 24, 2017 04:57 ET (08:57 GMT)