If you’ve been following us at all, you’ll probably remember that we’ve been covering MMEX Resources Corp (OTCMKTS:MMEX). Now, if you’re new, MMEX Resources Corp shares were up more than 100% in one day recently, extending its more than 500% gain in a one-month period. Now, this was primarily due to an SEC Form 8K filing, but if you’ve never heard of MMEX before, you’ll probably need to know what the company does.
MMEX Resources is a developmental stage mining company that’s primarily focused on the exploration, extraction, distribution and refinery of oil, gas, and petroleum products. Additionally, the company engages in the distribution of electric power. MMEX Resources is also focused on the development, acquisition and financing of energy-related products in Peru, and other Latin American countries, as well as Texas.
Now that you have an idea with what the company does, let’s get right into the company’s recent SEC Form 8K filing. MMEX Resources Corp (OTCMKTS:MMEX) recently announced that it entered into a Master Services Agreement with Trinity Consultants. THe Master Services Agreement engages Trinity to file and process the required Texas Commission of Environmental Quality (TCEQ) and EPA Region 6 Prevention of Significant Deterioration/New Source Review Construction Permit and Title V Federal Operating Permit. Now, if the filing and processing is successful, this would provide MMEX with governmental permissions to build its proposed $450M, 50K barrels per day (bpd) capacity crude oil refinery in Pecos County, Texas.
However, keep in mind that there is no guarantee that the company would be successful in obtaining the required permits. Now, there are several status updates for the Pecos County Refinery Project development, and here’s what the company stated in its SEC Form 8K:
“(1) On February 20, 2017 the Company entered into a purchase and sale agreement (the “PSA”) for the Project location which consists of 500 contiguous acres located on the Texas Pacific Railroad, about 20 miles northeast of Ft. Stockton, Pecos County Texas in the southern part of the Permian Basin. The Company plans to commence the week of April 17, 2017, the survey on the land and other due diligence. The closing date on the land is on or before 180 days from the date of the PSA which was February 20, 2017.
(2) On March 25, 2017 the Company entered into an EPC Contract with KP Engineering, LP (“KPE”). KPE will perform a scoping study, to design and engineer the Refinery. The scoping study, once approved by the Company, will lead to a more detailed FEED study, which is a front- end engineering and design study. This will give the Company more detailed cost numbers and product slate output. The FEED Study is estimated to take another 90 days from the date the scoping study is approved. The EPC Contract provides that KPE will be the EPC contractor to construct the Project.”
The Form 8K went on to state,
“(3) On February 27, 2017 the Company entered into a confidential engagement letter with a consulting firm to assist the Company in designing the marketing and refined product distribution plan.
(5) The Company has entered into confidential discussions with a Permian Basin mid-stream crude oil and pipeline supplier to supply the 50,000 BPD of crude oil to the refinery and to build a gathering pipeline to the Refinery plant inlet.
(6) The Company has entered into confidential discussions with investment banks to become the financial advisor for raising the debt and equity for the Project.”
With this SEC Form 8K filing, the company indicated it could potentially receive governmental permissions needed to build its $450M refinery in Texas. Now, if you want to stay up to date on MMEX Resources, all you have to do is enter your email address to sign up to our free newsletter. Thereafter, we’ll send you any updates the company may have, such as SEC filings or material developments, on MMEX Resources.
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in MMEX stock, short or long.