ADM ENERGY PLC

Regulatory Filings • Sep 12, 2014

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RNS Number : 5946R

MX Oil PLC

12 September 2014

MX Oil / Ticker: MXO / Index: AIM / Sector: Oil & Gas

12 September 2014

MX Oil plc ('MX Oil' or the 'Company')

Disposal of Investments and Update on Issue of Equity

MX Oil plc, the AIM quoted oil and gas investment company focused on the re-opening Mexican energy sector, announces it has disposed of certain investments totalling approximately £400,000, in order to reinvest the funds pursuing its investment interests in Mexico. Mexico's energy industry is being reopened to the private sector to attract greater foreign investment and expertise to develop its substantial hydrocarbon reserves.

MX Oil is in the process of incorporating its joint venture company ('JVco') with Geo Estratos. Pursuant to the joint venture arrangement, the Company intends to invest US$1m of debt into JVco to fund its share of the costs associated with an investment in the region. This will comprise 100% of the sale proceeds plus additional cash from balance sheet.  The Company is currently in discussions with Pemex, the state owned national oil company, with regards to making an application for a Production Sharing Agreement ('PSA') and licences in respect of the three assets in Mexico as announced on 1 August 2014.  The Company expects to make its investment shortly and a further announcement will be provided in due course.

MX Oil's Chief Executive Officer Stefan Olivier said, "Combined with our recent oversubscribed placing of £2 million, the proceeds from the disposal of some of our investments for a small profit will be put to good use as we look to secure our position as an early mover in the vast Mexican energy sector. We are highly encouraged by the progress we have made to date which has seen us secure a JV with a well-connected local partner with a proven track record in the Mexican energy sector, and recently enter constructive discussions with both the Mexican authorities and state-owned Pemex with a view to securing our first concessions, each of which has company-making potential. The review of the available opportunities is proceeding apace, and as a result we have decided to proceed with the incorporation and funding of the JV company. I look forward to providing further updates on our progress during this exciting time for MX Oil."

Further re: Issue of Equity

Further to the announcement of 1 August 2014 regarding a placing and issue of equity, the Board of MX Oil advises that the shares that were due for admission on 6 August will be admitted to trading on 16 September 2014.  The delay occurred due to an administrative oversight.

The total issued share capital of the Company following admission of these shares will be 201,332,190 ordinary shares of 1p.

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For further information please visit www.mxoil.co.uk or contact:

MX Oil PLC Stefan Olivier, CEO	+44  20 7710 9618
Cairn Financial Advisers LLP (Nominated Adviser) Jo Turner/Liam Murray	+44 20 7148 7900
Hybridan LLP (Lead Broker) Claire Louise Noyce Niall Pearson	+44 20 3713 4581
Cornhill Capital (co-Broker) Nick Bealer St Brides Media & Finance Ltd (Financial PR) Lottie Brocklehurst Frank Buhagiar	+44 20 7710 9612 +44 20 7236 1177

This information is provided by RNS

The company news service from the London Stock Exchange

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