Update and issue of equity and warrants

MX Oil / Ticker: MXO / Index: AIM / Sector: Oil & Gas

14 March 2016

MX Oil plc ("MX Oil" or the "Company")

Update and issue of equity and warrants

MX Oil, the AIM quoted oil and gas investing company, is pleased to announce that it has today raised £2,500,000 before expenses via a placing (the "Placing") of 333,333,333 ordinary shares at a price of 0.75 pence per share (the "Placing Shares") together with the issue of 66,666,667 warrants over ordinary shares at 1 pence to the Company's broker and certain other parties. The Placing was oversubscribed and the proceeds will be used to make what is expected to be the final payment in connection with the Company's investment in Nigeria prior to the commencement of oil production.

As previously announced, the first payment due from GEC Petroleum Development Company Limited ("GPDC") with regard to its proposed purchase of the Company's Nigerian investment is expected on or around 14 March 2016 and a further announcement will be made shortly with regard to the receipt of these funds. Given the immediacy of the final funding round for the Company's Nigerian investment prior to first oil, the Company believed that it was prudent to have its own funds in place to ensure that this timetable could be met and so decided to proceed with the Placing.

In terms of the progress being made in Mexico, the Company is currently discussing the possibility of assigning three of its four Mexican interests to its joint venture partner, Geo Estratos, in return for an increased interest in one licence, Tecolutla, which it considers to provide the most attractive investment opportunity, and a cash payment to the Company. The Company will provide a further update in due course.

Application will be made for the Placing Shares to be admitted to trading on AIM ("Admission") and it is expected that Admission will become effective on or around 18 March 2016. The Placing Shares will rank pari passu with the existing ordinary shares of the Company (the "Ordinary Shares"). 

Following the Placing, the Company will have 799,940,073 Ordinary Shares in issue, each share carrying the right to one vote. The Company does not hold any Ordinary Shares in treasury. The above figure of 799,940,073 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

MX Oil's Chief Executive Officer, Stefan Olivier said, "We felt that it made sense to avoid any timing risk with regard to the funding of our Nigerian investment prior to it commencing production by ensuring that we had our own funds in place in order to make this payment. We will update the market shortly with regard to the funds expected from GPDC and also on the progress being made in Mexico."

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