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AIM-listed MX Oil has announced that it has raised £500,000 before expenses via a placing of 100 million new ordinary shares at a price of 0.5 pence per share. The funds raised will enable further development of the Aje project. The Company has also provided an update with regard to OML 113, the offshore licence in Nigeria, in which it has an investment.
The Aje field within the OML 113 licence area commenced production in 2016. On 5 February 2018, the Company announced that it would be updating its Competent Persons Report ('CPR') as a result of the production data that has been generated. This report is expected to be available during March 2018.
Field production has now stabilised at around 3,300 bopd (165 bopd net to MX Oil) and, on the basis of this level of production, combined with a focus on reducing operational expenditure, the Company has calculated that lifting costs are currently around US$40 per bbl.
One of the two current production wells, Aje-5, has been producing from the Turonian Oil Rim since May 2017. Based on the data gathered from this well, the Company now believes that there are significant oil volumes to recover from this interval which it believes will be confirmed by the updated CPR and the development of an integrated oil and gas development plan of the Turonian reservoir is now being discussed.
Application has been made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is expected that Admission will become effective and that dealings in the Placing Shares on AIM will commence on or around 6 March 2018.
For a more complete summary of the Company's status and the forward project plans, please refer to the Presentation on the Company website.
Stefan Oliver CEO said:
'I am very pleased that investors continue to be supportive and these new funds will go towards the further development of the Aje project. I very much look forward to providing an update on the first phase of this work which will be the completion of the CPR in March 2018.'
Source: MX Oil