LONDON (Alliance News) - MX Oil PLC said on Monday it has raised GBP1.0 million through a subscription and placing of 1.0 billion shares at a price of 0.1 pence per share.
Shares in the oil and gas company plunged 46% to 0.11 pence on Monday. The issue price is at a 52% discount to MX Oil's closing price on Friday, at 0.21 pence.
Proceeds from the issue will go towards additional investment appraisal of OML113 and to pay its working interest share of the licence extension fees associated with the renewal of the licence in, offshore Nigeria.
In August, MX Oil received consent from the Minister of Petroleum Resources to renew the licence for another term of 20 years, subject to certain conditions, including a commitment to develop the gas potential of the licence.
The two wells in the Aje field within the licence is currently producing at a rate of 3,300 barrels of oil per day, with MX Oil's partners on the licence expected to commissioning further drilling in 2019.
Currently, MX Oil is in discussions with certain groups for project financing for its share of the developments for the completion of additional wells expected in phase two. The two development phases for OML 113 are expected to result in peak production rate of 8,000 to 12,000 barrels of oil per day, for initial development drilling.
In addition, Chairman Nicholas Lee has stepped down from his role with immediate effect to "spend more time on his other business interests" after two years in the role since 2016. He will be replaced by Non-Executive Director Richard Carter.