MX OIL SHARES DROP ON SHARPLY WIDENED ANNUAL LOSS

MX OIL SHARES DROP ON SHARPLY WIDENED ANNUAL LOSS

Originally published on June 29th, 2018

MX Oil PLC shares dropped Friday after it announced its final results for the year ended 31 December 2017 and posted a significantly widened annual loss on the back of costs relating to the operation and development of wells in the Aje field, Nigeria.

In terms of operations in the Aje field, the investment company received an updated competent persons report for its OML 113 licence. The new report increases the proven reserves to 78.2 million barrels of oil from 11.7 million barrels of oil since the previous publication of the report in 2014.

The proven and probable reserves have increased to 127.1 mmboe from 23.4 mmboe. The proven, probable and possible reserves have increased to 215.0 mmboe from an unreported figure in 2014.

Looking ahead, MX Oil is currently working on “the potential for new oil wells in both the Turonian and Cenomanian” oil rims due to the updated competent persons report. The company is also in the “progressing well” in the process of renewing its OML 113 licence “for a further 20 years”

Based on these two developments, MX Oil expects to see “further development drilling in 2019 with a view to progression to a full-scale oil and gas integrated project thereafter”.

Source: LSE