MX Oil Undervalued Bagger Company

PUBLISHED: Aug 02 2015 @ 03:05 | Comments (0) | More info about Chrisoil

The floor in MX Oil (LSE:MXO) share price seems clear with the fall in oil prices from $60 to $52 now is the time to buy. The company is drilling two production wells with potential to uplift oip numbers on its West African Aje field with very low all in costs and a significant rerating is on the cards to £45m cap company.

The exclusive news Chris Oil has contacted a leading geo oil expert on West Africa, it seems Aje field geophysical map is very interesting which in laymens terms means the accumulation could exceed the structure as a larger stratigraphic trap. We look forward to the initial production and second production drilling results to prove these new OIP numbers.

Recent news about Afren should not worry investors, so far the company still meets all cash calls for this project with relatively short path to production. If Afren defaults on payments regarding its share MX Oil would see its revenue share increase to 6.5% WITHOUT having to buy the additional stake should Afren default capex. This option was fully costed in at the time of raising as highlighted by Hybridan report notes 22 July 2015.

Apart from a potential giant reserves upgrade from the new 3d due soon in block 113 resulting in rumoured giant oip numbers from Lek Oil Ogo potential extending into MXO block, from the biggest oil discovery offshore in the last three years, i feel the other seven exploration derisked prospects will be highlighted in more detail.

However inital production of the Aje field is now set to start in December 2015 on 11,000bopd gross 5% interest to MXO given its current market cap the companies on target for 200% growth. Remember the warrants are 6p 12 and 18p which the company has set itself the aim to achieve this year.

Added to the potential Mexican low cost massive onshore production assets thrown in for free with big news this year one wonders why investors are not adding to MXO. However Andy Frangos CEO knows a bargain buying an additional £87,500 at 3.9p certainly shows confidence in the companies short term company making news events. Indeed Chris Oil is now looking to top up as one of the largest shareholders.

I will be on my regular slot on Tip Tv London discussing MX Oil (LSE:MXO) with Zak Mir 10.00am Thursday 6th 2015.

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Until the next time more ramblings from the castle can be seen @chrisoil

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