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Cagey MX Oil to proceed with transaction for ‘near production’ project

The AIM oil junior wants a cash-generative asset to support its plans in Mexico

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The project, whatever and wherever it is, should achieve ‘first oil’ by December

MX Oil (LON:MXO) has told investors that now intends to imminently proceed with an acquisition of a new project, though it has yet to reveal key details.

The AIM quoted junior, formed last year to build a Mexican oil and gas business, described the new opportunity as “an indirect, non-operating minority interest in a substantial development stage project outside of the Americas.”

It is anticipated that the project, whatever and wherever it is, will achieve ‘first oil’ by December.

A competent persons report has now been completed for the project and, based upon the report’s findings, MX has decided to proceed with a transaction. Such a deal is, however, conditional and remains subject to contract.

Stefan Olivier, MX Oil’s chief executive, said: "The CPR confirms the highly attractive fundamentals of this near term producing asset, which if secured, may provide MX Oil with a near-term cash generative platform from which to develop concessions we are targeting in Mexico.

“With due diligence underway on targeted concessions in onshore Mexico, this is an exciting period for MX Oil as we look to secure our first assets and in the process generate substantial value for our shareholders."

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