MX Oil, a company involved in developing the Aje field, offshore Nigeria, has raised raised £2,500,000 before expenses via a placing of shares.
The company placed 333,333,333 ordinary shares at a price of 0.75 pence per share together with the issue of 66,666,667 warrants over ordinary shares at 1 pence to the Company’s broker and certain other parties.
“The placing was oversubscribed and the proceeds will be used to make what is expected to be the final payment in connection with the company’s investment in Nigeria prior to the commencement of oil production,” MX Oil said in a statement.
The Aje field is expected to start production later this month upon the arrival of the Front Puffin FPSO. According to Marine Traffic, the FPSO is expected to arrive to its offshore Nigeria location on Wednesday, March 16.
MX Oil explained the move by saying that the first payment due from GEC Petroleum Development Company Limited (“GPDC”) with regard to its proposed purchase of the Company’s Nigerian investment is expected on or around March 14, 2016, and given the immediacy of the final funding round for the company’s Nigerian investment prior to first oil, the “company believed that it was prudent to have its own funds in place to ensure that this timetable could be met and so decided to proceed with the Placing.”
MX Oil’s Chief Executive Officer, Stefan Olivier said, “We felt that it made sense to avoid any timing risk with regard to the funding of our Nigerian investment prior to it commencing production by ensuring that we had our own funds in place in order to make this payment.”
Offshore Energy Today Staff