LONDON (Alliance News) - Oil and gas investment company MX Oil PLC on Friday said it has agreed terms on the sale of its investment in the Aje field offshore Nigeria to GEC Petroleum Development Co Ltd.
Under the terms of the agreement GEC will have the right to acquire MX Oil's indirect investment in the Aje Field for a total of USD18.0 million.
Initially, up to USD3.5 million will be advanced to MX Oil in three stages, with the first payment expected in March.
GEC will then have the right to buy the investment, which MX Oil said is most likely to happen when initial oil production at the project starts.
"We are delighted that we have now been able to finalise agreement for the sale of our investment in the Aje Field with GPDC which already has substantial assets within the region. I look forward to updating the market as the sale progresses and the Aje Field nears production," said MX Oil Chief Executive Stefan Olivier.
MX Oil shares were up 12% on Friday morning to 1.4 pence, one of the best performers in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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