MMEX Resources Corp (OTCMKTS: MMEX) has been moving up steadily in recent days off its $0.0015 lows on significant volume created by a loyal shareholder base which has been bidding this one higher. MMEX has a history of big moves making a huge run in early 2017.
The Company announced a 100 for 1 reverse stock split Friday after the close effective on October 19, 2018 assuming approval from FINRA is received. So it’s still more than a month away.
MMEX Resources Corp (OTCMKTS: MMEX) bills itself as a development stage company formed to engage in the exploration, extraction, refining and distribution of oil, gas, petroleum products and electric power. MMEX focuses on the acquisition, development and financing of oil, gas, refining and electric power projects in Texas, Peru, and other countries in Latin America.
The Company is trying to develop a new oil refinery in Pecos County in the West Texas Permian Basin, US, the first new oil refinery to be built in the Country for more than 40 years. The refinery is set to occupy a 476-acre site, situated 20mi (32.1km) north-east of Fort Stockton, Texas.
The refinery will be developed in two phases, with phase one set to comprise the construction of a crude distillation unit for producing diesel, naphtha and residuals. The distillation system will have a production capacity of around 10,000 barrels per day (bpd). The Company received environmental approval from the Texas Commission on Environmental Quality in August 2017.MMEX purchased the 126 acres of land required for phase one in July 2017.
Phase two of the project will involve the development of a large-scale refinery with a capacity of 50,000 barrels per day, which could be expanded to 100,000 barrels per day at a later date. It will be capable of producing a range of transportation specification fuels such as diesel, gasoline, and jet fuels.
MMEX plans to acquire an additional 350 acres of land for the refinery site in January 2018. The entire 476-acre site will feature designated space for storage and possible further expansion. The Company estimates the oil refinery will cost $450 million to build. They also plan to purchase an additional 250 acres of buffer land around the refinery for the installation of state-of-the-art emissions technologies, which are expected to reduce the environmental impact.
In July the Company announced it intends to develop a solar power project to provide electric power to its planned 10,000 barrel-per-day (BPD) crude distillation unit and its full-scale crude oil refinery in Pecos County near Fort Stockton, Texas.
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MMEX CEO Jack W. Hanks stated “We are pleased to announce an add-on of solar power to our business plan. We have formed MMEX Solar Resources, LLC and filed the trademark (above) to develop a solar power project to potentially supply solar power renewable energy to our refinery projects in Phases 1 and 2. We already own 126 acres in our site, and with an approximate industry configuration of four acres to build out one megawatt (MW) of solar power, we have ample space to start an initial solar phase alongside of our CDU Phases 1(a) and (b) construction. In addition, we have entered into preliminary discussions to lease additional acreage allowing us to develop an additional 75 MW to 100 MW of solar power. Our planned refinery complex will utilize about two MW of power in Phase1(a) and (b) and about 35-50 MW in Phase 2. We believe the remainder of the power can be sold into the grid.”
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Currently trading at a $11 million market valuation MMEX has just $18k in the treasury and significant debt with $2.5 million in current liabilities which continues to result in dilution. The Company also has no revenues to date. MMEX does have an exciting project in the new oil refinery they are trying to develop in Pecos County, Texas and they have already purchased the 126 acres of land required for phase one as well as received environmental approval from the Texas Commission on Environmental Quality. Reverse splits on the OTCBB generally go one of two ways; if the Company has nothing going on and it’s just about toxic debt and dilution RS usually ends badly. If the Company has real projects and a real future RS can help it gain credibility and up-list to a higher exchange. Monday will be interesting indeed. We will be updating on MMEX when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with MMEX.
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Disclosure: we hold no position in MMEX either long or short and we have not been compensated for this article.