MX Oil makes Mexico's bid shortlist for new onshore licences

MX and partner Geo Estratos notified by Mexico's oil National Hydrocarbons Commission (CNH) that they have qualified to participate in the third phase of the Bid Round 1 Licensing round for conventional onshore concessions, which are expected to be awarded on 15 December.

MX and Geo intend to bid for multiple concessions in the tender, which will see 25 contract areas in the states of Chiapas, Nuevo Leon, Tabasco, Tamaulipas and Veracruz awarded.

Using Geo's comprehensive proprietary database, MX chief executive Stefan Olivier said the team was aiming to secure lower-risk development projects that had "company-making potential, even at current oil prices".

He said he firmly believed the company was well placed to submit highly competitive bids for multiple licences.

As part of the country's plan to encourage private investment and boost oil production, Mexico put 14 offshore exploration blocks in the Gulf of Mexico up for auction in the summer, but only two of the blocks were sold.

The AIM-listed company has also reached an advanced stage in discussions to secure debt funding to allow it to meet all of its investment requirements offshore Nigeria, where it remains on-track for first oil early next year after in October completing the first of two production wells at its Aje discovery.

Olivier added: "With drilling operations reportedly now complete and production on course to commence offshore Nigeria in early 2016 and discussions to secure debt funding at an advanced stage, this is a highly exciting period for MX Oil, one in which we are focused on building a leading oil and gas investment company."

Shares in MXO were down 0.8% at 2.53p at 1050 GMT on Wednesday.