MX Oil, the AIM quoted oil and gas investing company, is pleased to provide an update in respect of the four Land Contract Areas (the "LCAs") it was awarded, alongside its local partner Geo Estratos ("Geo"), during the third phase of the Bid Round 1 Licensing Round for onshore conventional concessions in Mexico. The four LCAs awarded to the MX Oil/Geo JV, namely Tecolutla, La Laja, Ponton, and Paso de Oro, are all located in the prolific Tampico-Misantla Basin which has, to date, produced around six billion barrels of oil and currently produces approximately 70,000 barrels of oil per day.
The National Hydrocarbon Commission ("CNH") anticipates signing contracts with the companies awarded LCAs during the second quarter of 2016. In advance of this, CNH has requested draft documentation be provided in order to monitor progress. These documents include: a Joint Operating Agreement setting out the terms under which the Joint Venture partners will work together; a Provisional Plan which describes the operational plans for the execution of the first year's committed work programme, together with plans for maintaining any existing production; and proposed funding for the guarantees to support the committed work programme. On 2 February 2016, the Company, along with its partner Geo, provided the draft documents to CNH, who have confirmed receipt, and so the MX Oil/Geo JV have complied with CNH's requests. Further work will be needed by the Company and Geo to finalise these documents and it is anticipated that further drafts will be requested by CNH prior to approval being granted and contracts being signed.
MX Oil's Chief Executive Officer Stefan Olivier said, "We are pleased to report that we have satisfied our initial obligations in connection with our four LCAs. As previously announced, the LCAs include previously discovered but underexploited conventional fields as well as other already identified exploration targets, all of which have enormous potential for development. I look forward to providing further updates in due course."
