MX Oil gains permission from Grenada to explore boundary between Trinidad, Tobago

20th Dec 2016 08:04

(ShareCast News) - Oil and gas investor MX Oil signed a memorandum of understanding with the Grenadian government to explore in the maritime boundary between Trinidad and Tobago.The company agreed to invest in the exploration and development of hydrocarbons in a subterranean area which adjoins the two islands.It covers the underexplored prospective territory in the Grenada Tobago basin acreage, which is adjacent to the Venezuelan and Trinidadian Patao-Poinsettia gas trend.The memorandum is pre-text to negotiate a more detailed production sharing agreement, likely in the first half of next year, which will cover a tenure and work programme and, if preliminary work proves encouraging, further exploration.MX Oil stressed that the memorandum of understanding does not guarantee a production sharing agreement.Chief executive Stefan Olivier, said: "We are very pleased that we have now signed a memorandum of understanding with the government of Grenada. We believe that this agreement provides us with the scope for an early entry in an exciting but underdeveloped region underpinned by the strong support of the Grenadian government."Shares in MX Oil were down 2.33% to 1.05p at 0836 GMT.