Aje Participating Interest - Title Update

5 June 2019

MX OIL PLC

("MXO" or the "Company")

Aje Participating Interest - Title Update

MX Oil plc, an oil and gas investing company quoted on AIM, announced on 4 February 2019 that consent had been received from the Ministry of Petroleum Resources ("MPR") for the renewal of the OML 113 licence, which is part of the Aje Field, for another term of 20 years.

The Company had acquired an indirect interest in OML 113 when it purchased Jacka Resources Nigeria Holdings Limited ("Jacka"), a wholly owned subsidiary of Jacka Resources Limited, which was announced on 10 August 2016. Following receipt of consent from the MPR, the Company sought and has subsequently completed the assignment of its 5% revenue interest in OML 113 from Jacka to the Company.

Ministerial approval for the indirect acquisition of the interest was conditional upon the payment of the assignment fee, being $550,000, of which the Company had already paid $137,000. The Company has now settled the balance of the assignment fee. 

As disclosed on 15 April 2019, subject to normal operating conditions and oil prices and production costs remaining stable, it is anticipated that the project debt on Aje Field should be repaid after the 12th lifting (expected in Q4 2019). The Company also advised that the Aje investment is anticipated to generate material free cash flow for the Company assuming continued stable production and no change to capital or operational expenditure at project level in Q1 2020. The costs of the assignment had been included in the Company's estimate and accordingly there is no change to the Company's expectations for the timing of either event as a result of the conclusion of the assignment.

Shareholders are reminded that should the price of oil or the production rate from Aje decrease materially or should there be unanticipated costs, or interruptions in operations, then it may take longer than anticipated to repay the project level debt and, in turn, take longer for the investment to produce positive cash flow for the Company and hence move to profitability.

MX Oil's Chief Executive Officer Stefan Olivier said:

"I am delighted to announce that we have now formally completed the consent process with the Federal Government of Nigeria and this formalises the legal title in our Aje asset."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 and the person who arranged for release of this announcement on behalf of the Company was Stefan Olivier, Chief Executive Officer of the Company. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

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