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Mexico's Alpha announces stock plans following energy reform

23 Oct 2014
Alfa SAB, the Mexican company has announced plans to issue new stock to raise capital, following Mexico’s new energy laws that have opened up the private sector.

The company intends to draw on its experience in shale gas, conventional exploration and production and power generation and capitalise on the opportunities created by Mexico’s energy reform.

Alfa has been producing shale oil and gas in Texas for several years and in 2014 has been raising its holdings in Pacific Rubiales, the Canadian-based oil company, to nearly 20%.

The possible amount raised has been estimated at $1 billion.

The country’s new energy laws also give private power generators greater flexibility for selling electricity directly to large and medium-sized users, and Alfa is also interested in expanding its electricity operations, as well as its oil projects.