MX Oil and partner Geo Estratos to bid on five concessions in Mexico licensing round

AIM-listed oil and gas investment company MX Oil said that along with its partner Geo Estratos it plans to bid for five concessions in Mexico’s first licensing round.

MX said it has submitted its pre-qualification filing with the National Hydrocarbons Commission regarding its participation in the third phase of Bid Round 1.

In this third phase, a total of 25 land contract areas in the states of Chiapas, Nuevo Leon, Tabasco, Tamaulipas and Veracruz will be awarded to companies that satisfy the pre-qualification requirements and win the subsequent tender process.

In addition, MX Oil said it has completed its due diligence on five land contract areas and plans to bid for all five of the concessions. It is expected concessions will be awarded in December 2015.

Chief executive Stefan Olivier said: "Along with our partner Geo, we have carried out comprehensive due diligence on five blocks and we like what we see. As a result, we intend to lodge bids for all five concessions which match our investment criteria: onshore conventional fields with existing discoveries requiring development, as well as mature fields in need of secondary interventions to enhance hydrocarbon recovery rates.

“These are not exploration licences but lower risk development projects with company-making potential, and importantly they have fast and visible routes to cash flow generation, even at current oil prices.”

At 1123 BST, MX shares were up 2.9% at 2.42p.