MX Oil has raised £3.4million in a share placing of 341.2 million shares at a price of 1 pence each, ensuring it has enough cash to retain its investment in its Nigerian operation.
MX Oil said the placing is to ensure it has appropriate funding to retain its investment in block OML 113, offshore Nigeria, as well as funding its other activities and reducing its debt.
The company said production of oil has now commenced at the Aje Field on block OML 113, and with the oil price continuing to increase, retaining the investment is continuing to become more attractive.
Chief executive Stefan Olivier said: “I am pleased that investors are gaining confidence in the value of our Nigerian investment and the company’s potential.
With oil production having commenced offshore Nigeria and, against the background of an increasing oil price, it may make sense for the company to retain its investment in the Aje Field and the share placing provides the flexibility to do so, said Oliver.
Recommended for you
