LONDON (Alliance News) - MX Oil PLC Tuesday said it will make an investment in a development stage project outside of the Americas within three weeks, as it confirmed it has been formally listed as a participant in the Mexican onshore oil and gas licensing round.
The oil and gas company, which is focusing on Mexico's newly opened energy market after 76 years of state monopoly, said the company and its Mexican partner, Geo Estratos, have been listed as two of 16 participants in bid round one, phase three of the Mexican licensing round.
Back in May, MX Oil said it planned to target the available onshore and mature fields with estimated resources totalling 100 million barrels of oil equivalent.
"This is a highly exciting period for MX Oil. Not only is excellent progress being made in Mexico as we look to deliver on our objective to secure potentially transformative assets in the vast reopening Mexican energy sector, but also with regards to our due diligence on a near term, cash generative investment opportunity outside of the Americas," the company said.
MX Oil is currently considering a number of near-term, cash-generative investments in geographies outside of the Americas that could help fund its work programmes in Mexico, including an opportunity to acquire an indirect, non-operating, minority interest in a "substantial" development stage project with proven, flow-tested discoveries that remains unnamed.
MX Oil said Tuesday it has made "significant progress" with a "substantial" development stage project, and said it could make an investment in three weeks time after it receives the final competent persons report.
"Securing this near-term producing asset would generate significant cash flows, which would provide MX Oil with a strong platform from which to build a leading Mexican focused oil and gas company, and in the process generate significant value for our shareholders," said Chief Executive Stefan Olivier.
MX Oil shares were up 8.1% at 4.00 pence per share early Tuesday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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