Ann: MXO Funding Update - Nigerian Investment, page-2

MX Oil plc (“MX Oil” or the “Company”)
Sale of investment in Aje Field offshore Nigeria
MX Oil plc, the AIM quoted oil and gas investing company, is pleased to announce that it has
now agreed terms for the sale of its investment in the Aje Field offshore Nigeria to GEC
Petroleum Development Company Limited (“GPDC”). GPDC is a Nigerian company actively
exploring and developing oil and gas resources in the Niger Delta and Anambra basins. GPDC
operates two licences offshore (OPLs 2009 and 2010) and two licences onshore (OPLs 907 and
917), along with OML 149 in joint venture partnership with Eni/Nigerian AGIP and Seven
Energy. GPDC holds significant interests in these assets and has 2P Reserves (net) of 16mmboe
and 2C Resources (net) of 139mmboe. GPDC has total estimated gas resources of 6.4TCF and
oil resources of some 1.3 billion barrels. It is the wholly owned exploration and production
subsidiary of Global Energy Company Limited (“GEC”), an energy resources and infrastructure
group focused on Africa. GEC has been established for over 23 years.
Further to the announcement of 2 February 2016, under the terms of this agreement, GPDC has
the right to acquire the Company’s indirect investment in the Aje Field for a total consideration
of US$18 million. Initially up to US$3.5 million will be advanced to the Company in three
stages, with the first payment of US$2 million expected on or around 14 March 2016. These
funds will be used to finance the remaining cash calls expected to be required for the investment
in order to bring the underlying asset into production.
GPDC will then have the right to acquire the investment, which is most likely to be when initial
oil production commences. On exercise of this acquisition right, the Company will receive one
payment of US$5.75 million and then a second payment of US$5.75 million six months later.
The balance of US$3 million will then be paid in three annual US$1 million instalments from the
date of the exercise of the acquisition right, although these payments may be accelerated in the
event that the oil price exceeds US$45 per barrel for a three month period.
For more information please contact:
Max Cozijn, Chairman
Ken Charsinsky, E&P Advisor Jacka Resources Limited Tel: +61 8 9481 0389
[email protected]