MX Oil has signed a non-binding memorandum of understanding (MoU) with the Government of Grenada with regard to making an investment in the exploration and development of hydrocarbons in a subterranean area adjoining the maritime boundary with Trinidad and Tobago.
The area covered by the MOU includes underexplored prospective Grenada Tobago Basin acreage adjacent to the Venezuelan/Trinidadian Patao – Poinsettia gas trend.
The intention of the MOU is to form the basis for the negotiation of a more detailed Production Sharing Agreement (“PSA”) which, if signed, is likely to occur during the first half of 2017.
It is expected that the PSA will cover matters including, but not limited to, tenure and work programme including 2D seismic and, subject to these results proving encouraging, further exploratory phases including 3D seismic data acquisition.
The signing of the MOU does not guarantee that the Company will be successful in securing a PSA and the Company will update the market in due course in the event of any significant development.
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