London-listed oil minor MX Oil is hoping to raise about US$6.26 million through issuing new shares to fund the work on the Aje field offshore Nigeria.
Production started from Aje, in block OML 113, last year, but has been limited by the performance of the Aje-5 well, which requires subsurface intervention to remedy a mechanical problem.
The required intervention work has now started and a further well, Aje 6, is to be drilled to increase Aje production. The cash raised by MX Oil will help fund these activities.
Aje is in the western part of Nigeria, 24km offshore, in the Dahomey Basin and is operated by Yinka Folawiyo Petroleum Co.
It is tied into the Front Puffin floating production, storage and offloading vessel (FPSO).