MX Oil and Geo Estratos Express Formal Interest in Mexico's Bid Round One
MX Oil announced Tuesday that the company, along with its local partner Geo Estratos, has been formally listed as an interested party in phase three of Mexico’s Bid Round One by the Comission Nacional de Hydrocarburos.
As a result, MX Oil and Geo are expected to access the relevant data rooms imminently in order to undertake due diligence on concessions of interest. Overall production from the twenty-six onshore conventional fields being sold as part of Mexico’s Bid Round One is estimated to stand at 35,000 barrels per day, while natural gas production could total 225 million cubic feet per day, according to officials from the CNH.
MX Oil's Chief Executive Officer Stefan Olivier commented in a company statement:
"This is a highly exciting period for MX Oil. Not only is excellent progress being made in Mexico as we look to deliver on our objective to secure potentially transformative assets in the vast reopening Mexican energy sector, but also with regards to our due diligence on a near term, cash generative investment opportunity outside of the Americas. Our due diligence on both our Mexican and non-Mexican target assets is highly encouraging and we are very well placed to capitalize on both."
Significant progress has been made with regards to the potential investment in a project outside of Mexico, according to the company, and details of this transaction are expected to be announced within the next few weeks. The latest development in Mexico’s Bid Round One follows the trend predicted by Research Director of Latin America Upstream Oil and Gas Ivan Cima, who claimed that smaller private exploration and production firms would likely be the main bidders on the fields.
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