UK 15:34 Friday, 23 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
What constitutes a “fair and reasonable” related transaction? This is the question shareholders in MX Oil (MXO) should be asking themselves after discovering on Monday that their company has agreed to pay Cornhill Asset Management a $1.8million bonus for sourcing the 5% stake in the OML 113 licence, offshore Nigeria. The $1.8million, contingent on two relatively minor conditions, is an extremely generous reward to Cornhill and its shareholders for an investment made less than six weeks ago. There are further difficult questions to answer about this transaction so I contacted Andrew Frangos, CEO of Cornhill Asset Management and Chairman of MX Oil, to see what he had to say.
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Comments
DUCK AND DIVE
Thanks for another very well researched piece. MXO were off my radar before and won’t be on my watchlist now.
turbograndad
Too many conflicts of interest in this one, lost my interest, thanks Ben.
Gary Newman
Lot will come down to oil price, given a $45 break-even price on Aje – if we see a return to higher prices then can see value, if not then the NPV10 of the project for MXO isn’t going to be anywhere near as impressive (think the figure given in the RNS for that was based on $70 oil).
Will be interesting to see who took up the 4.5p shares, and also where the additional finance to get to first oil comes from and on what terms.
Malcolm Gliksten
more fools both of you…