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The Progression of MMEX and the Permian Basin Refinery Project
Announcement of the MMEX Refinery Creates a Buzz
Since MMEX Resources Corporation (OTCMKTS:MMEX) announced in early March that it planned to build a refinery in the Permian Basin it has drawn a lot of attention. In a recent Q&A with MMEX CEO Jack Hanks, he shared a bit about the progress of the project and how he feels about the buzz it has created.
"The response to date regarding plans for the Pecos County refinery has been incredibly positive. MMEX is regularly receiving inquiries from potential MMEX shareholders, local and industry news publications and community and industry leaders in the Permian Basin inquiring about the Pecos County refinery project and its progress."
Mr. Hanks also stated, "We believe that it’s crucial to work closely alongside local community leaders and keep local residents informed throughout all stages of the project." and backed that on May 17th by announcing the opening of the new MMEX office in downtown Ft. Stockton, TX.
Hanks is also scheduled to speak at the 9th Annual Southwest Energy Summit June 13th, 2017 at 1:30pm on the development status of the Pecos County Refinery project.
MMEX Sets Up Shop in Ft. Stockton, TX
Land Survey Completed
MMEX Focuses on Land Closure and Permitting
Building a facility such as a refinery requires coordination of a lot of moving parts. With many irons in the fire, folks have been curious on the next big step MMEX is focused on taking.
"In addition to actively securing financing for the project on an ongoing basis, MMEX is focused on closing the land purchase for the site and continuing the application process for environmental permits required for the refinery to be built. MMEX announced a strategic relationship with Trinity Consultants, Inc., an international environmental consulting firm that specializes in industrial air quality issues, to spearhead the permitting process."
In regards to the land Hanks also stated, "Since the purchase sale agreement for the Pecos County Refinery land site was executed in February 2017, MMEX has been performing necessary due diligence to finalize the purchase of the land site. This includes the land survey, which was conducted in late April 2017. MMEX expects to announce the closing of the land purchase early this summer."
Financing a $450 Million Dollar Refinery
Construction projects happen in phases beginning with a basic idea and progressing step by step from there thus the costs incurred by the project happen in phases as well. In the beginning the steps, though important, are relatively small in comparison to the much larger ones taken down the road and so are the costs associated with them. Nonetheless, they all have a cost and the larger ones down the road have a big one.
The $450 million dollar price tag on the Pecos County Refinery has many people wanting to know more about the project's financing and how MMEX intends to pay for it.
While the recent secured financing is to cover short term expenses and immediate needs related to the project, Hanks could not disclose information on potential investors or pending opportunities for the future. He did say however, "MMEX Resources Corp. does not anticipate any issues securing financing for the project, as the MMEX management team successfully sought financing for several multi-million dollar gas processing, pipelines, power plants, refinery and oil and gas operations in Peru and the United States over the last 30 years."
MMEX Refinery Site Location
MMEX is 100% Focused on the Pecos County Refinery
With all the changes and potential changes to regulation as well as national interest in growing American businesses tied in with the seemingly endless potential of the Permian Basin, I asked Mr. Hanks about what else MMEX may have on it's radar beyond the refinery.
"MMEX Resources Corp. is 100 percent focused on the Pecos County refinery project at this time. Potential opportunities for expansion and future projects will be considered once the Pecos County refinery is complete."
So though for now the company is maintaining focus on the task at hand, future expansion is not being ruled out.
To stay up to date with the progress and latest publicly available information on the Pecos County Refinery project, Mr. Hanks encourages people to visit the "Milestones" section of the MMEX website.
About the Pecos County Refinery Project
The refinery is to be a state of the art, 250 acre facility with a 250 acre buffer operating out of the Permian Basin and process 50,000 barrels a day of crude oil once the necessary permits and financing are obtained. It's location would take advantage of being close to existing storage, railroads, pipelines, and feed supply. It's intended to refine and supply refined goods both locally and internationally. The refinery projects to create 400 temporary jobs and 100 permanent jobs when complete.
MMEX Gets Local Support for Refinery
The following constitutes a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, which could cause the actual results to differ materially from those described in the forward looking statements. These risks include but are not limited to general business conditions, the requirement to obtain financing to pursue our business plan, our history of operating losses and other risks detailed from time to time in the Company's SEC reports. MMEX and the author, undertakes no obligation to update forward-looking statements.
© 2017 Dan Robbins