PERMITTING STARTED!>On April 13, 2017, MMEX Resources Corporation (the “Company”) entered into a Master Services Agreement with Trinity Consultants, Inc. (“ Trinity”) engaging Trinity to file and process the necessary Texas Commission of Environmental Quality (TCEQ) and EPA Region 6 Prevention of Significant Deterioration (PSD) /New Source Review (NSR) Construction Permit and Title V Federal Operating Permit which, if successful, would give MMEX the governmental permissions to build its proposed $450 million, 50,000 barrels per day capacity crude oil refinery in Pecos County, Texas (the “ Refinery Transaction” or the “Project”).
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(4) On April 13, 2017 the Company entered into the agreement with Trinity described above.
The Company has received several requests from its stockholders for additional information regarding the status of the Pecos County Refinery Project development and accordingly discloses the following information:
(1) On February 20, 2017 the Company entered into a purchase and sale agreement (the “PSA”) for the Project location which consists of 500 contiguous acres located on the Texas Pacific Railroad, about 20 miles northeast of Ft. Stockton, Pecos County Texas in the southern part of the Permian Basin. The Company plans to commence the week of April 17, 2017, the survey on the land and other due diligence. The closing date on the land is on or before 180 days from the date of the PSA which was February 20, 2017.
(2) On March 25, 2017 the Company entered into an EPC Contract with KP Engineering, LP (“KPE”). KPE will perform a scoping study, to design and engineer the Refinery. The scoping study, once approved by the Company, will lead to a more detailed FEED study, which is a front- end engineering and design study. This will give the Company more detailed cost numbers and product slate output. The FEED Study is estimated to take another 90 days from the date the scoping study is approved. The EPC Contract provides that KPE will be the EPC contractor to construct the Project.
(3) On February 27, 2017 the Company entered into a confidential engagement letter with a consulting firm to assist the Company in designing the marketing and refined product distribution plan.
(4) On April 13, 2017 the Company entered into the agreement with Trinity described above.
(5) The Company has entered into confidential discussions with a Permian Basin mid-stream crude oil and pipeline supplier to supply the 50,000 BPD of crude oil to the refinery and to build a gathering pipeline to the Refinery plant inlet.
(6) The Company has entered into confidential discussions with investment banks to become the financial advisor for raising the debt and equity for the Project.
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