MMEX Resources Corp (OTCMKTS:MMEX)
Shares of MMEX Resources Corp (OTCMKTS:MMEX) traded lower after the company announced it had received permits for the construction of a 10,000 barrel per day crude distillation facility in Texas. The stock was down by 19.32% in Friday’s trading session to end the week at $0.0167 a share.
MMEX Resources Corp (OTCMKTS:MMEX) continues to trade in a downtrend after retreating from this year’s highs of $0.06 per share. The stock is currently trading in a $0.01 – $0.02 trading range having struggled to rise above $0.03 a share mark, a key resistance level.
The development stage company specializes in the exploration, extraction, refining, and distribution of oil, gas, and associated petroleum products. It appears the stock’s sentiments on Wall Street have taken a hit on oil prices struggling to rise above the $50 a barrel mark as uncertainty continues to grip the energy industry.
Amidst the uncertainty in the industry, MMEX Resources Corp (OTCMKTS:MMEX) continues to invest in projects it believes will have a positive impact on its long term growth prospects. In July, the company confirmed the acquisition of 126 acres of land in Pecos County, where it intends to construct the 10,000 barrel-per-day (bpd) crude distillation facility.
MMEX Resources Corp (OTCMKTS:MMEX) plans to acquire an adjacent 350 acres of land where it will construct its Phase II 50,000 bpd refinery. The refinery site is strategically located, which should allow the company to take advantage of the existing railway as well as roadway and pipeline infrastructure.
“The closing of our Phase I land site is a major milestone for the Pecos County refinery project and a catalyst for significant milestones to come […].We’re eager to begin construction on this exciting project and start bringing new jobs to the region,” said CEO Jack W. Hanks.
Construction of the crude distillation facility is to start anytime and slated for completion after 15 months. The company expects the facility to have a significant economic impact on Pecos County during the construction phase and when it becomes fully operational.
The new facility marks yet another milestone in MMEX Resources Corp (OTCMKTS:MMEX) push to reinvigorate its growth prospects. In June, the company reached an agreement that paved way for it to gain access to $3 million in new financing. Part of the funds is to be used to pay down the company’s debt, cater for the construction of the new facility while also financing working capital operations.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.