Plans to reopen Mexico’s flagging oil industry to the private sector have been approved, giving shares in AIM-listed MX Oil (LON:MXO) a lift.
Mexican senators gave the bill the green light and are now discussing the other supporting bills.
Once these are approved, the president will be able to give his final seal of approval to the overhaul.
The reforms are aimed at changing the fortunes of Mexico’s oil industry, which has suffered from falling production over the past decade.
Shares in MX Oil, which recently changed its name from Astar Minerals with a new focus on oil exploration in Mexico, were up 5% on the news to 3.7p.
Chief executive Stefan Olivier said in a stock exchange statement: “The timing of these transformational reforms in Mexico could not come at a better time for MX Oil.
“Having just announced the signing of a JV with a highly established Mexican partner, Geo Estratos, appointed two extensively experienced directors to our board, and raised £2 million, we are in an ideal position to focus our efforts on unlocking the massive potential that the re-opening Mexican energy sector has to offer.”