LONDON (ShareCast) - AIM-listed oil and gas exploration group Astar Minerals has signed a joint venture agreement with Nogal Holdings to expand its mining presence in Mexico.

The agreement is in line with the group strategy to explore oil and gas investment opportunities in Mexico’s energy division which is expected to be reopened to the private sector.

The group will hold a 51% interest in any developments secured through the joint venture and will be responsible for raising capital to fund exploration development.

Nogal holds a 49% stake in the joint venture and has been appointed as the operator of the relevant concession. A management committee comprised of two representatives from both groups will be set up to oversee the partnership.

Astra’s Chief Executive Officer Stefan Olivier said: "In Nogal, we have found a well-connected and experienced partner with whom Astar can participate in the reopening Mexican energy sector.

"The size of the opportunity is clear: Mexico is already a top 10 global oil producer and has huge quantities of untapped conventional and unconventional reserves. To develop these vast reserves requires foreign capital and expertise."

As of 13:43 Astra's share price had risen 53.85% to 1.45p.

WS

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE