Oil producer MX Oil (LON:MXO) saw shares take a hit on Friday, after reported larger than expected pre-tax losses.

A rise in operating costs offset rising revenue, with pre-tax losses hitting £3.4 million over the full year. This is compared to losses of £1.3 million in 2016.

The AIM-quoted oil producer, who are focused largely on Nigeria, said they were currently checking out the potential of new oil wells, as well as renewing an existing licence for a further twenty years.

“Subject to the outcome of this modelling work and the renewal of the OML 113 licence, the company expects to see further development drilling in 2019, with a view to progression to a full-scale oil and gas integrated project thereafter”, the group said.

Shares in MX Oil are currently trading down 1.53 percent at 0.42 (0857GMT).