MX Oil hands local partner majority stake in 3 Mexican fields

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Friday, March 18, 2016

London-listed firm MX Oil has signed an agreement with its Mexican partner Geo Estratos to assign the latter a 55% working interest in three onshore blocks for a total of US$1.8mn.

The three areas are La Laja, Ponton, and Paso de Oro, all located in the Mexico's prolific Tampico-Misantla basin, which has produced around 6Bb of oil to date and currently produces approximately 70,000b/d.

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The agreement also includes an increase in MX Oil's working interest in the Tecolutla field, in the same basin, from 55% to 66.6%, MX Oil said in a filing sent to the London Stock Exchange.

All four areas were awarded to MX Oil and Geo Estratos in the December 15 on shore auction.

Geo will fully finance its pro rata share of the cost of the development of the asset, MX Oil added.

MX Oil will have the option to become the operator of Tecolutla, subject to the appropriate regulatory approvals and process.

The transaction will enable MX Oil to more than recover the investment made to date in securing assets in Mexico, while increasing its position in what it believes to be the most attractive asset, the company said.

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