MX Oil PLC Market update - Nigeria investment (1198G)
May 24 2017 - 7:07AM
UK Regulatory
TIDMMXO
RNS Number : 1198G
MX Oil PLC
24 May 2017
MX Oil / Ticker: MXO / Index: AIM / Sector: Oil & Gas
MX Oil plc ("MX Oil" or the "Company")
24 May 2017
Market update - Nigeria investment
In 2016, the production of oil commenced from the Aje Field
within block OML 113, offshore Nigeria, in which the Company has an
investment. The Aje-4 well, the first well to go into production,
has continued to produce since the date of first production. After
an initial period of decline associated with rising water cut,
production has now stabilised. As previously announced, production
from the Aje-5 well has been limited and has required subsurface
intervention. This intervention is in the process of being
completed and will include re-connection to the subsea tree. A
further update will be provided in due course. To date, the Company
has completed its share of the payments required to get to this
stage of the project's development.
As has previously been announced, the Aje Field is believed to
hold significant resources of gas. The partnership has been
progressing the field development plan for the development of the
gas and has also held discussions with various potential gas
off-takers. The partners in the Aje Field are therefore currently
considering whether it would be more appropriate for the next stage
of the field development to focus on gas production rather than
drilling additional oil wells. It is expected that a CPR will be
updated shortly with a focus on the gas using the new data obtained
from the recent operational work on the Aje 5 well. Previously, it
was anticipated that a further well, Aje 6, would be drilled in the
short term to increase oil production from the field, however,
until the partners have concluded as to the most appropriate next
steps, the drilling of this well will be deferred.
CEO, Stefan Oliver said:
"Given the potential scale of the gas opportunity versus the
risk and reward of drilling additional oil wells, it makes sense
for the partners to consider and reflect on what the next stage of
the development should be. This discussion is currently ongoing and
I look forward to updating the market in due course as the thinking
develops."
Enquiries:
MX Oil PLC +44 20 7571
Stefan Olivier, CEO 0473
Cairn Financial Advisers LLP
(Nominated Adviser) +44 20 7213
Jo Turner/James Caithie 0880
Cornhill Capital
(Broker) +44 20 7710
Nick Bealer 9612
This information is provided by RNS
The company news service from the London Stock Exchange
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