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LM20 is of no real significance given our revenue interest now; LM14 however is very different; hyperthectically and taking LM20 as base since you raise it - test V production; so if LM14 performs at half the production based on the announced test, what revenue does that equate to NCT, given the workover and gas tie infrastructure costs already sunk? Back of envelope, gas alone $6,500 per day x 52% (revenue interest) = $3,380 per day; reduce test rate by 50% for sustained production - that is over $600K pa gross to NCT on gas alone from LM14; that would be even on a substantially reduced production rate, so a very significant contribution to overheads. Not insignificant even if someone is pessimistic. The big prize is no doubt gas and they have said precisely that i.e. they are going after gaseous zones, see last RNS. I thought you said NCT were very upbeat last week after e-mailing NCT but unable to say exactly what was said?
Stabilised production rates are required for lm14 as lm20 proved test rates are a poor indicator of actual performance.
"The company is a some way from having cash flow to cover company overheads even with the workovers at Shoats Creek" Any more updates from the company on LM14 testing/near term tie in? That might just help....a lot : )
RC took over $200000 in cash in 2015 as part of his $283000 remuneration package. He received 2 payments of �20000 in shares towards his salary in 2015, so perhaps his statement of not drawing a wage needs some clarification. The company is a some way from having cash flow to cover company overheads even with the workovers at Shoats Creek and the RP plant when finally finished.
Nice map. En la Ronda 2.1 se licitarán 15 áreas contractuales para exploración en #AguasSomeras del Golfo de México. #Ronda2 https://t.co/H8fQOTkziF The RP is well placed to service some of those. Who would have thought?
Nice map. En la Ronda 2.1 se licitarán 15 áreas contractuales para exploración en #AguasSomeras del Golfo de México. #Ronda2 https://t.co/H8fQOTkziF
This Nct news flow is like a Mike Tyson combo straight in your face.
Positivity even : )
I definately reckon so - be nice to see some positively : )
If you read Orslega's previous posts he said he was going to filter you for your repetative and constant negativity, so no point asking him questions. He was responding to Blingybird - at this rate you'll be talking to yourself just like it is for you on the RRR board!
So good morning all, would I be correct in a two week time scale for a nice bounce from our current sp level?
Appreciate the RNS links there Orslega. I am confused however, Those RNSs talk about quarterly tranches of remuneration and state �20,000 in the quarters, That would suggest a total yearly remuneration of �80,000. Why then does the recent Final Report show the Total Remuneration for RC as $283,000 (approx �215,000) ?
blingybird, just had a quick look, you are quite right, the 2015 accounts confirms RC did exchange services tor shares in the company. As did other directors. "The loan note to Randall Connally at 31 December 2015 was converted into equity subsequent to the year-end. " There was also an announcement on 6/10/2015 - other directors were also taking shares in lieu of salary - money where mouth is : ) 6 October 2015 Northcote Energy Ltd (�Northcote� or �the Company�) Consulting and Directors Shares; Issue of Equity; Total Voting Rights Further to the announcement dated 12 February 2015, the Directors have received their second quarterly tranche of their 2015 contracted remuneration in Ordinary Shares, being 22,222,222 Ordinary Shares (�20,000) in respect of Randall Connally, 22,222,222 Ordinary Shares (�20,000) in respect of Ross Warner 13,333,333 Ordinary Shares (�12,000) in respect of Charles Wood, together the �Settlement Shares�. Accordingly, following the issue of all the Settlement Shares, the holdings of these Directors will be as follows: Plus also previously on 12/2/2015, RNS In conjunction with the Placing, the Directors have agreed to subscribe for a total of 192,963,335 new Ordinary Shares ('the Settlement Shares') in exchange for converting (a) existing indebtedness from the Company being �55,000 due to Randall Connally in respect of an unsecured short-term loan, �50,000 to Daniel Jorgensen in respect of accrued director's fees and �16,667 to Ross Warner in respect of accrued director's fees; and (b) the first quarterly tranche of their 2015 contracted remuneration in shares at the Placing Price, being 22,222,222 (�20,000) in respect of Randall Connally, 22,222,222 (�20,000) in respect of Ross Warner and (c) a proportion of their 2015 contracted remuneration in shares at the Placing Price, being 13,333,333 (�12,000) in respect of Charles Wood. The Company has agreed to issue the director's 2015 remuneration in full for Ross Warner and Randall Connally and, in part for Charles Wood, in Shares at the Placing Price. These Shares will be issued quarterly in advance with the first tranche being issued in conjunction with the Placing. So yes, more "money where mouth is". Enjoy the weather the cold beers. Cheers
Orslega mentioned before that he believed RC was taking shares in lieu of salary but was then somewhat surprised when the Final Report came out which states the remuneration of each of the Key Management. Just search for the word "remuneration" in that final report and you will find the figures. If I have missed some statement in that Final Report that states that the remueration was not taken in cash but in shares instead, then please highlight it. With that Final Report still in mind, I would like to ask you to explain the statement you made earlier which was: "having now a significant holding and having topped up recently feel comfortable that the company is positioned for cash flow to cover costs at shoats creek and company overheads and drills " The Total Administrative Expenses in the consolidated report is shown as $5.6m of which $4.3m was "Other Administrative Expenses". There are other outgoings of course but if we just consider those Administrative Expenses alone, the $5.6m (or $4.3m if you prefer) can you explain how you reach the conclusion that the company has cash flow to cover that amount? Perhaps you are really speculating that at some point in the future, you personally think that there will exist cash flow to match those levels of Admin and all the other expenditures. I hope you are right, but the cynic in me thinks it will take time to reach that point and in the meantime more share issues will likely appear.
Back now my friend and touring beautiful Isle of white in a vw California camper Cold one in the globe pub cowes Day like this our lovely country beats marbella hands down
bigtimber, precisely; as part of the Mexico Energy reform the regulations dealing with O&G waste were materially re-written. My understanding from a while back is that under the then new Mexico government regs passed in March 2015, the Mayan plant is intended to one the first treatment plants in Mexico to satisfy the treatment criteria of dirt tainted with oily chemicals generated from the discharges from field exploration, drilling, production, well treatment and well completion activities. Maybe not immediately but certainly part of the plans for the site capabilities. Catch up later.
"My limited view which I have voiced does agree that shoats creek was never going to be the big draw and randy was happy to give up a little there for a cash flow and future funded drill program" blingybird - agreed. But the last recent RNS for Shoats Creek, although poorly written it gave us some very upbeat news about testing on LM14 gas; we are waiting to hear more but the with a revenue interest of around 53% on LM14, that could be a big figure for NCT share. RNS: "Lutcher Moore #14, (“LM#14) (Frio formation, Northcote 70% WI), now tested 40 bopd and 2.5 million cubic feet (gross) of natural gas production over 24 hours;" That equates (for LM14 gas only) 2.5 MMcf = 2500 Mcf * US$2.50 per Mcf = $6,250 per day = $2.3M x 52% revenue interest $1.18M (gross) to NCT. And more gaseous targets identified per RNS. Low cost workovers at Shoats Creek are beginning to show that a low risk, low cost high impact strategy is starting to pay off. And very nicely if tests = production.
re AGM, yes no news yet; I am guessing that there are some board changes a foot (widely rumoured) which are probably being finalised; once that has happened I expect an AGM date to be announced as that will need shareholders to vote accordingly. imo
"Interesting that capacity has been increased from 700 to 845 tons a day [ is this confirmed blingybird; Yes, the increased processing capacity was confirmed in the 20/4/2016 RNS "Upon completion, the Facility will commence operations on a 24 hour per day, 7 day per week basis, with a processing capacity of 845 tons per day which represents an increase of approximately 20% from the 700 tons per day originally contemplated (please see RNS dated 29 July 2015)."
If I may also add I can totally understand the view of some posters being disillusioned with no news updates and share dilution capital raising but having now a significant holding and having topped up recently feel comfortable that the company is positioned for cash flow to cover costs at shoats creek and company overheads and drills to increase there with wti increasing slowly and having turned the corner Mr magic you state in previous posts that randy and the board took remuneration of I believe a $1,000,000 plus was this cash or share allocation ??? As my last conversation with randy was that he has not drawn a wage from the company If I'm wrong I apologise
Thanks to both orslega and big timber on their precise and in depth and unbiased info and insight into the Mexico position and rp plant My limited view which I have voiced does agree that shoats creek was never going to be the big draw and randy was happy to give up a little there for a cash flow and future funded drill program but the winning ticket is Mexico with the opening up oil reform and service industry rather than oil production Interesting that capacity has been increased from 700 to 845 tons a day [ is this confirmed ] I hope this is due to increased interest and pending contracts News well overdue and to come soon As always DYOR Again waiting to hear about any agm ??????
Logically though, Juan Osman and Abraham Achar will be the Mayan Drilling guys doing the ground work for contracts for the RP; Gaia after all are the specialist local operational partner for the plant (NCT being the financier); Gaia have a good reputation and plenty of offshore/onshore experience as set out in their website, plus some very big clients , Halliburton et al - now finalised, the Mayan Drilling plant should place the JV in a very good position to pick up referral work from Gaia client base : ) http://www.ecologica.mx/en/clients/
Offshore - worth highlighting the original 29/7/2015 RNS - note the comments re longer term offshore; could see a JV with a barge provider, that would work..... About the Facility Focused on minimising upfront cash requirements, and to ensure that the Facility fits industry demand for its services, the JVCo has a development plan that will mean the site should start generating cash flow immediately upon commissioning.� The Facility is designed to be easily scalable should Tabasco county see the increase in drilling activity that is anticipated by management.� Furthermore the products and services offered by the Facility can be expanded to include handling waste from off-shore drilling platforms and eventually be expanded to recycle the hydrocarbons and water recovered in the remediation process to manufacture drilling fluids and drilling muds. Mayan Drilling Fluids will be engaged in environmental remediation services, which will include, but not be limited to, the remediation of oil based mud drill cuttings.� The Facility's initial capacity will be in excess of 700 tons per day with the potential to expand as demand increases over time.� The pricing model being implemented by Mayan Drilling Fluids contemplates pricing in-line with similar plants in South Texas where prices range from $60 to $100 per ton. Geographically the Facility's location in the city of Comalcalco is in the heart of on-shore oil and gas activity between the city of Villahermosa, Mexico and the nearby port facility.� It is anticipated that the location will give Mayan Drilling Fluids a competitive advantage by reducing the distance that oil and gas operators will need to transport their waste for remediation.� Longer term the proximity to the port facility will allow for potential addition of barge service to treat cuttings from offshore platforms in the shallow water Gulf of Mexico and the Company contemplated recycling oil for use in manufacture of oil based drilling mud. Additionally, the Facility's location allows for efficient use of capital as Mayan Drilling Fluids will not have to own large acreage to hold remediated rock and dirt.� Output not sold to support major road and construction projects is expected to be sold as fill for quarries in the vicinity in line with the government's specifications.� The JVCo is on track to secure all necessary permits during the construction phase.
bigtimber, there is no doubt that offshore activity is on Mayan remediation radar; last RNS Mayan update. 20/4/2016, specifically highlights that opportunity: "Strong Business Case for the Facility It is Northcote’s belief that, despite a lower oil price environment, the energy reform in Mexico is on track and that recent developments continue to support the business case for and will greatly benefit the MDF facilities in Tabasco given the following factors: Strategically and centrally located facility with access to two key highways in the heart of onshore oil & gas fields, blocks to be awarded pursuant the recent bid round and state run blocks; Proximity to key port supporting all offshore oil and gas activity in the southern portion of the Gulf of Mexico; Substantial nearby refining and industrial activity to diversify revenue streams; High demand for remediated solids for road construction and fill-in of numerous quarry mines in immediate area; Mexico is generally recognised as one of the lowest production cost oil regions in the world Excellent potential for the Facility to support remediation requirements in the downstream sector (refining, marketing and distribution of petroleum products) as well; Having previously been segregated from international competition and compliance with environmental protection and other industry standards within the refining and retail fuel distribution market, the introduction of PEMEX to international competition has already created a push for: improving environmental standards; mandating greater environmental and financial accountability improving the retail fuel distribution segment to operate line with international standards" The capacity of the plant has been increased from 700 tons per day to 845 tons per day (indicating demand), with the possibility of expanding further if needed. Based on announcements the plant will have started commissioning around now - the intention is that it be operational 24/7 so best ensure no snagging issues. The company have stated that they identified many different types revenue streams from the plant and I guessing at this juncture Juan Osmon, President of Mayan Drilling (and President of Gaia, NCT JV partner) will be having plenty of discussions locally - whether they are in a position to manage offshore waste haulage from the outset, who knows. I suspect initial contracts will be based on onshore local demand, but in due course certainly a big opportunity to break into. I would like to think that through NCT controlling interest in Mayan Drilling, that can represent shareholders interest in serious waste haulage business but no doubt there will be other JV opportunities once the plant is fully operational.
As usual more words of wisdom ..............not. Due to your authoritive insight ( as you say so much but says nothing) - where do you think the share price will be in 10 trading days from now? Ballpark will do. I have asked you this question twice in July and you duck it everytime - from your relentless negativity I guess you might suggest a lower than current price? Go on commit yourself for a change !! ? Thanks in advance...