MMEX Resources Corporation is a development stage company that was initiated to engage in the exploration, extraction, refining as well as the distribution of electric power, petroleum products, gas as well as oil. The company’s primary focus is on acquiring, developing and financing electric power, oil and gas projects in Peru, Texas and other Latin American countries. On 16th of October 2017, the company made a press release announcing its 10,000 barrel per day ground-breaking event that was headed by the CEO and president of the company Jack W. Hanks. At that point, MMEX had recently received approval from the Texas Commission on Environmental Quality to construct the 10,000 barrel per day crude distillation unit close to Fort Stockton. There were applauses about the ground-breaking of the project that was to build the first refinery in the United States of America in over 40 years.
The late Friday afternoon ground-breaking ceremony was carried out at the crude distillation unit of the company’s future. The site is located northeast of Fort Stockton. Close to 100 people including investors held the event, public officials as well as other Very Important Persons. The 10,000 barrel per day crude distillation unit was to be in commercial operation by December 2018. The project has already started, and the CEO is confident that MMEX Resources will achieve its goals. The general contractor for the project was VFuels LLC which is based in Houston. Hanks in his remarks affirmed that “most of the construction will be held at fabrication plants in Odessa and Houston”. He also stated that the units would be rolled out on site as well as assembled on site throughout 12 months. Additionally, upon completion, the crude distillation unit would be in a position to produce the gasoline ingredient naphtha, fuel oils and a particular form of diesel that would contain a lot of sulfur.
The sulfur would, in turn, be used in vehicles, but it also has other applications. MMEX had the plan of selling naphtha and the fuel oil to refineries and other facilities that are located along the Texas Gulf Coast. Hydraulic fracturing oil wells would also use the sulfur-heavy diesel. There was a second phase of the project which required permission from the Texas Commission on Environmental Quality to build a refinery. As earlier on mentioned in the article permission was duly granted. Hanks went ahead and stated that supply and demand were falling into expectations and possibly exceeding them. He added by ascertaining that there is a lot of activity and leasing going on. The CEO added that “it makes a lot of sense to construct the U.S’s first refinery in the Permian Basin as it combines vast proven deposits and costs less.”
Hanks had spent so much time in Latin America but felt the need to return to the United States and examine the Permian. The confluence of massive production in the Permian is what influenced the location in Pecos County as well as transportation and land availability. Hanks is still actively involved in projects around Central and South America where a 172-megawatt natural gas power plant exists in Peru. In July 2018, MMEX declared its intention to develop a solar power project. The company, later on, made public its partnership with Texas Solar Power Association a trade organization that constitutes companies that work towards developing solar products in Texas. Hanks shed light on why his company decided to power the oil refinery alongside a renewable energy source. He stated that there were vast resources in Pecos County in the Permian Basin, the most robust oil field, sufficient sun as well as solar power metrics. He affirmed that it made sense to MMEX as compared to buying power from the grid.
According to Hank strategy is vital towards the successful completion of any project. The first step he states is hiring procurement and engineering contractor. He affirms that the contractor would work with the Texas Solar Power Association in the creation of a solar plan. The company aims to develop the distillation unit as well as a solar project simultaneously. The first phase would be in commercial operation in 12 to 15 months. According to Hanks the solar power generated would power MMEX Resources Corp facilities and would potentially power the nearing cities. The CEO asserts that many stakeholders have shown so much interest in buying solar power. MMEX resources are said to have taken a big step to the realization of that Pecos County refinery project.
The project was announced in March 2017, and by November, the same year, Hanks admitted that the company had accomplished a great deal in getting funds and putting in place starategies to actualize its vision. The distillation unit can be viewed as a significant milestone to the more massive refinery project. Hanks continued by stating that the two are distinct projects that required separate application procedures. He, therefore, acclaimed that the process would be more complicated than the application for the distillation unit. The refinery would produce a wide range of slate fuels which include diesel, propane, jet fuels and gasoline. The company had earlier announced plans for 50,000 barrel per day but doubled to 100,000 barrels per day later that year. This was done with the aim of creating more job opportunities, enhancing the tax base for Fort Stockton at a little more incremental cost.
Hanks hopes that it will be 400-plus construction and technical jobs at the top. Consequently, it would accelerate other jobs including catering, housing, and transportation. So, possibly the posts would shoot beyond the given 400. With a large-scale refinery, it is a sizeable tax base for Pecos County; the investment is a $1 billion investment. It is confirmed to have been plenty of crude supply from the Basin of Permia, and it said to have a ready market. The second project was granted a three-year window period for total completion. The two facilities will be accessible by truck, rail and ultimately pipeline. “We are pleased to announce an add-on of solar power to our business plan. We have formed MMEX Solar Resources, LLC to develop a solar power project to supply solar power renewable energy to our refinery project in Phases 1 and 2”, added Hanks.
The site for the two facilities connects to roads that head to interstate 10 and Interstate 20. Additionally, they are at the heart of Texas Pacifico railroad that leads towards interconnections at Dallas-Fort worth and Gulf Coast. Hanks also stated that there is the potential for exports of the refinery’s products to Mexico. This is because the Texas Pacifico is connected with Ferromax at Presidio that grants access to western Mexico markets. Before the ground-breaking event, Hanks announced that the company would be traded on the OTC venture market. The CEO affirms that this is the most significant milestone for the project. Having been listed on the OTCQB, the company is capacitated to offer more governance and transparency to the shareholders. More than 10,000 companies are said to be on its exchange. The OTC market, therefore, aid in the identification of risk by classification of its securities in three categories by their performances and practices. The venture market is labeled to be for development stage companies and those that intend to be entrepreneurial with strong transparency and baseline.