In our last review of MMEX Resources Corp on June 5, 2017 we made an argument that the Company may not be as bad as it seemed in the recent past. At the center of the controversy is the question of whether or not MMEX Resources can deliver on its objective of building a $450 million crude oil refinery in the Permian Basin near Fort Stockton, Texas. Some recent press releases have shed some positive light on the Company.For those readers that are not familiar with the Company, MMEX Resources Corporation used to be focused on the exploration, extraction and distribution of coal, but on April 12, 2016 the company changed its business activity to the exploration, extraction, refining, distribution of oil, gas, petroleum products and electric power. The name of the company was also changed from MMEX Mining Corporation to MMEX Resources Corporation.MMEX Resources Corp is making progress on the Permian Basin refinery project. On July 31, 2017, the Company announced the closing of a purchase of 126 acres in Pecos County, Texas for the construction of its Phase I 10,000 barrel-per-day (BPD) crude distillation unit near Fort Stockton, Texas.The 126-acre land site will house MMEX’s Phase I 10,000 BPD crude distillation unit which will have a total footprint of 15 acres and be a companion to the Phase II $450M, 50,000 BPD refinery announced in March. MMEX intends to file necessary permits for the initial unit immediately and expects to be able to obtain full permitting on the initial unit within 45 days of filing.As part of the land sale agreement, MMEX also intends to purchase an adjacent 350 acres for the construction of the Phase II 50,000 BPD refinery, which will have a footprint of 250 acres, no later than January 2018. When both land purchases are complete, the combined land site for both refineries will consist of 476 total acres with room for storage and expansion.On June 26, 2017, MMEX Resources Corp announced a strategic relationship with VFuels, a full-service design, engineering, and fabrication firm that specializes in the delivery of modular crude oil refineries, gas flare elimination processes, modular flow stations, and other modular process equipment. Under the agreement, VFuels will oversee the engineering, design and construction of the initial 10,000 BPD distillation unit, effective immediately.KP Engineering, who was announced as the EPC partner for the full-scale $450M unit earlier this year, will continue to oversee engineering and construction of the larger unit so that progress for both units can take place concurrently. The 10,000 BPD refinery project will be an initial unit for the $450M, 50,000 BPD Pecos County refinery project.On the financing front, MMEX Resources Corp announced on June 13, 2017, an agreement with Crown Bridge Partners, LLC for an issuance of up to $3 million of equity securities, as well as plans to build a 10,000 barrel-per-day (BPD) crude distillation unit near Fort Stockton, Texas as an initial unit for the $450M, 50,000 BPD Pecos County refinery project.In other related news the Texas Department of Transportation’s (TxDOT) plans to use a $7 million federal grant from The U.S. Department of Transportation to strengthen existing rail infrastructure in Permian Basin. As announced on August 4, the funds are expected to help rebuild the Presidio-Ojinaga International Rail Bridge and 72 miles of track on the South Orient Rail Line that run from the Mexico border to near Coleman, Texas owned by the state of Texas but maintained and operated by Texas Pacifico Transportation, Ltd. under a lease with TxDOT. Jack W. Hanks, President and CEO of MMEX Resources Corp., commented:
“TxDOT’s planned re-completion of the bridge at Presidio-Ojinaga and improvements of the rail line from Alpine, Texas to Presidio are a major step for exporters and importers of all commercial goods from Western Mexico out of and into the West Texas Permian Basin area. We located our proposed refinery site on the railroad in Pecos County, Texas precisely for this reason.”
On our last review of MMEX, the stock was trading at $.0090. It has since traded up slightly to as high as $.0168. The stock is currently trading at $.0141. The latest quarterly financial reports for the period ending April 30, 2017 continue to show no revenues, and a Net Loss. The balance sheet is very heavy on the liabilities side. Current market capitalization stands at $12.86 million, on 1.45 Billion shares outstanding as of August 25, 2017.Investor confidence in MMEX Resources Corp is far from being restored. However, the company is headed in the right direction. Once the Permian Basin refinery project begins gets closer to fruition (permitting, financing, construction), investor's faith will then fully be restored and the skeptics will have been proven wrong. We will be updating our subscribers as soon as we know more. For the latest updates on MMEX, sign up below!Image courtesy of Linda MacPhee-Cobb via FlickrDisclosure: We have no position in MMEX and have not been compensated for this article.
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