LONDON (Alliance News) - MX Oil PLC Wednesday said it intends to participate in the tender offer in Mexico for mature onshore conventional oil fields in three states across the country, and said it is also working with its local partner to secure fields currently operated by the state-owned oil company.
The company said the tender offer is the latest step in Mexico's move to allow foreign companies to own and produce oil, ending a 76-year-old state monopoly.
The onshore fields are based in the states of Tabasco, Veracruz and Tamaulipas and MX Oil said it is targeting fields that remain attractive at current oil prices because they have low production costs.
The tender offer is due to open before the end of April.
MX Oil said it is also working alongside its partner Geo Estratos, a leading local oil and gas services provider, to secure existing fields operated by Pemex, the state-owned national oil company, via farm out agreements.
"MX Oil is focused on securing acreage on these large conventional fields which boast some of the lowest breakeven oil prices in the world. Behind the scenes we have been working hard to ensure that once the tender process commences, we are able to hit the ground running so that we are well positioned to secure company-making oil and gas assets and deliver on our objective to build a leading Mexican focused oil and gas company," said Chief Executive Stefan Olivier.
MX Oil shares were up 8.8% at 2.53 pence per share early Wednesday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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