Adm Energy Regulatory News (ADME)

27 September 2018

"MX Oil" or the "Company"

Half-yearly report for the six months to 30 June 2018

MX Oil plc, an AIM quoted oil and gas investing company, is pleased to announce its unaudited half-year results for the six months to 30 June 2018.

Highlights

· Oil is being produced at a stable rate from two wells in the Aje Field, part of OML 113, in which the Company has an investment

· An updated CPR has been prepared showing a significant increase in reserves

· The renewal of the OML 113 licence for another 20 years has been approved by the Minister of Petroleum Resources

· The plan for the next phase of the Aje Field expansion is being developed

Chairman's statement

Introduction

During the first six months of 2018, MX Oil plc has continued to pursue its strategy as an oil and gas investing company. Currently, the Company is principally focused on developing its investment in Nigeria. During the first six months of 2018, the Company made a total comprehensive loss of £1,147,000 (2017: £800,000). 

Review of activities

During the first six months of 2018, the Company has continued to make good progress with regard to its investment in OML 113. The two wells in the Aje Field within the OML 113 licence area have continued to produce, at a relatively stable rate of around 3,300 bopd (165 bopd net to MX Oil).

As part of the oil production process, new data about the underlying reservoir and related geology has been collected. Consequently, the partners in the licence commissioned the preparation of an updated Competent Person's Report ("CPR") in order to take into account this new data and to provide a more accurate update of the future potential of the field.

In February 2018, the Company announced that it had raised £500,000 to assist with the further development of the Aje project.

In May 2018, the details of the revised CPR were announced. The revised CPR is an update to the CPR prepared previously in July 2014 and incorporates all the developments and new data generated by the project since that date. The level of reserves reported in this latest CPR represents a significant increase compared to the previous report and highlights the future potential of the Aje Field.

In August 2018, the Company announced that it had received consent from the Minister of Petroleum Resources for the renewal of the OML 113 licence for another term of 20 years. The renewal is subject to the satisfaction of certain conditions, including a commitment to develop the gas potential of the licence.

Outlook 

Now that the Company has received the updated CPR, work is currently underway on modelling the potential for new oil wells in both the Turonian and Cenomanian. Subject to the outcome of this modelling work, the Company expects to see further development drilling in 2019.

N Lee 

Non-Executive Chairman

For further information please visit www.mxoil.co.uk or contact:

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2018

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2018

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2017

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2017

NOTES TO THE HALF-YEARLY REPORT

1. The financial information set out in this interim report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The group's statutory financial statements for the period ended 31 December 2017, prepared under International Financial Reporting Standards (IFRS), have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The interim financial information has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) and on the same basis and using the same accounting policies as used in the financial statements for the year ended 31 December 2017. The interim financial statements have not been audited or reviewed in accordance with the International Standard on Review Engagement 2410 issued by the Auditing Practices Board.

The financial statements have been prepared on a going concern basis under the historical cost convention. The Directors believe that the going concern basis is appropriate for the preparation of the financial statements as the Company is in a position to meet all its liabilities as they fall due.

2. Other gains and losses

3. Earnings per share

The basic loss per share is calculated by dividing the loss attributable to equity shareholders by the weighted average number of shares in issue.

4. No interim dividend will be paid.

5. Copies of the interim report can be obtained from: The Company Secretary, MX Oil plc, 17th Floor, 110 Bishopsgate, London, EC2N 4AY and are available to view and download from the Company's website: www.mxoil.com.