Member Info for orslega

yes re Shoats Creek, what about another low-cut/low risk/high impact workover announcement?; that is the clear plan to get immediate revenues flowing.......LM21/22 will happen but imo not until we have a lot more production - in the gas department....

so, 1 year on from the announcement below - some new faces might be interested in the original business plan for the RP - only change is the capacity of the plant has been increased by 20% to 840 tons per day and Pemex have signed up... Northcote is pleased to announce that, alongside its Joint Venture partner Gaia Ecologica S.A. DE C.V ('Gaia Ecologica'), it has formed the joint venture entity, Mayan Drilling Fluids SAPI de CV ('the JVCo') through which the development of the Tabasco remediation facility ('the Facility') will be undertaken. This agreement follows the successful purchase of the 22 acre property, which will host the joint ventures first facility in the State of Tabasco, Mexico. The Facility will recycle oil cuttings and provide other oil field services to both onshore and offshore wells. Highlights · Formation of JVCo and the commencement of operations in Tabasco is in line with the Company's strategy to invest in cash generative opportunities in the Mexican energy sector · Gaia has a long track record of providing services in Mexico to the oil & gas industry sector, including oil field waste remediation, making it the ideal partner due to its ability to manage operations from the initial build and commissioning through to full scale operations · Phase 1 will see the JVCo build and commission the Facility within 6 months, at an estimated cost of less than $1million · The Facility will be capable of operating 24/7, handling in excess of 700 tonnes per day, with the potential to expand significantly as demand increases over time · The JVCo partners contemplate that the Facility will operate a pricing model in line with similar plants in South Texas where prices can range from $60 to $100 per ton of waste processed, demonstrating significant revenue potential · Northcote is the funding partner, owning 51% equity in the JVCO, and Gaia is the operating partner, owning the remaining 49% · Northcote will fund 100% of the up-front expenditures associated with the implementation of Mayan's business plan and shall be entitled to 85% of distributable cash flow until pay-out plus a 9.0% internal rate of return on its investment o Following pay-out profits shall be distributed based on the relative ownership. · Juan Osmon, President of Gaia, will serve as President of Mayan Drilling Fluids with Randall Connally serving as Northcote's representative on the board Northcote Managing Director Randall J. Connally said, "We are very excited to be pushing forward with implementation of this business opportunity. In this environment of low oil prices I really like the fact that this plant will serve to increase and diversify Northcote's revenue not only because the revenue is not directly linked to oil price but also because the platform can remediate waste from a wide range of sources not just oil and gas. Additionally, we are plea

The problem I see is that whilst the plant has the capacity to do 850 tons a day, Pemex could more than fill that capacity. Where do the other operators go, given that they will want a look in on the first eco RP plant (Rules materially changed in March 2015 which means that strict controls are now in place). That imo can only mean that NCT/JV will be not long be looking to expand the plant to meet demand, something RC said was a known possibility. He has also said they had other strategic RP locations and it would be straight forward to replicate. Big business and high margins indeed! What today's RNS also does not say is that if things go to plan that $1M which NCT invested in the plant will be coming back sooner that peeps think.

In commercial terms there are two immediate and very important benefits of letter of intent with Pemex, imo: 1. It will allows NCT/Gaia JV open dialogue with Mexican banks re: financing for working capital and expansion in Mexico; 2. The new plant will set the standard for disposal in the area which will give the joint venture an opening with all other operators in the area.

RC/AA put this deal together, for sure. Credit where credit is due. The new guy might have helped cement it.

helpful - the initial signing points to much more with Pemex imo; it is the door opener without one shadow of a doubt.

buy at full ask on the bell : )

Helpful/Stuy- today is a biggy but I am also expecting something much bigger. As I have said many times imo MX oil services related, US >MX> It's getting very interesting how news is coming out but not from the CEO..........I would be guessing but I suspect the new CEO might be wanting to save the best until he gets the official handover..."I'm the CEO and what do you think of this deal?!"...that's the way I would want to start my new role if it were me!

RC always said that RP was essential in opening up MX opportunities - first plant inaugural ceremony we saw attracted many government officials as well as Pemex. Pemex want to be the first to be associated with it. How many companies with a £3M market cap have signed with the likes of Pemex? Excellent news. Do MXO get a chance to look in under the reciprocal participation rights? - could be that agreement related to oil E & P deals only, that would make sense

Start with the smaller players first : ) PEMEX is the Mexican state-owned petroleum company, which was created in 1938 following the nationalisation of all private, foreign, and domestic companies.  PEMEX is ranked 98 in the Global Fortune 500 of companies, generating over US$70 billion in revenue and with some US$102.83 billion in assets in 2014

The Facility is strategically and centrally located among existing onshore oil and gas fields in the state of Tabasco.  The Facility has excellent access to infrastructure including two key highways and a major port which supports all offshore oil and gas activity in the southern portion of the Gulf of Mexico.  In addition, there is substantial refining and industrial activity nearby which has the potential to diversify the Facility’s revenue streams.

" The Facility when commissioned will be the first investment by a foreign company in Tabasco to come on line following Mexico’s energy reform."

Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas 3 August 2016 Northcote Energy Limited (‘Northcote’ or ‘the Company’) Letter of Intent Signed with PEMEX- Mexican National Oil Company Northcote Energy Limited is pleased to announce its 51% owned subsidiary Mayan Drilling Fluids SAPI de CV (‘MDF’), has signed a Letter of Intent (‘LOI’) with PEMEX, Mexico’s national oil company, to provide a range of waste remediation services, including the recycling of oil cuttings generated by activity on oil fields operated by PEMEX at MDF’s facility in Comalcalco, Mexico (‘the Facility’).  The LOI is in line with Northcote’s strategy to capitalise on the deregulation of Mexico’s oil and gas industry to build a Mexican focused energy services and development company.  MDF is a joint venture company between Northcote and its local Mexican partner Gaia Ecologica S.A. DE C.V. The LOI sets out the basis under which MDF will provide PEMEX with the following services: Remediate and restore dams, grounds and polluted water bodies which have been contaminated by oil related activities, andManage urban solid waste and hazardous residuals generated by the active installations on oil fields belonging to PEMEX. Progression from LOI to a legally binding contract is subject to the completion and full commissioning of the Facility and all appropriate permits being in place.  A water handling and treatment permit (a key requirement for the commissioning of the Facility) was obtained in February 2016 from CONAGUA (the Mexican National Commission of Water).   It is intended that once the Facility is fully commissioned it will operate continuously, with a processing capacity of up to 845 tonnes per day.  On the basis of the Company’s knowledge of similar plants in South Texas, it believes that the Facility will have the potential to generate significant revenue. For the time being the Comalcalco facility is generating some contribution towards its costs, by offering public scale (weight measurement) services to local trucking companies. Northcote Chairman Ross Warner said, “We have always said that the opening up of Mexico’s oil and gas sector represents a once in a generation opportunity to companies operating in that sector.  Today’s LOI with PEMEX demonstrates that Northcote is becoming increasingly well positioned to take advantage of some of those potential opportunities.  Once our Facility is fully operational we believe it will contribute profits and revenue streams, to complement the Company’s existing business which is building up our production base at the Shoats Creek field in Louisiana.  More fundamentally, if successful, we believe it will provide us with an excellent reference point from which to iden

Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas 3 August 2016 Northcote Energy Limited (‘Northcote’ or ‘the Company’) Letter of Intent Signed with PEMEX- Mexican National Oil Company Northcote Energy Limited is pleased to announce its 51% owned subsidiary Mayan Drilling Fluids SAPI de CV (‘MDF’), has signed a Letter of Intent (‘LOI’) with PEMEX, Mexico’s national oil company, to provide a range of waste remediation services, including the recycling of oil cuttings generated by activity on oil fields operated by PEMEX at MDF’s facility in Comalcalco, Mexico (‘the Facility’).  The LOI is in line with Northcote’s strategy to capitalise on the deregulation of Mexico’s oil and gas industry to build a Mexican focused energy services and development company.  MDF is a joint venture company between Northcote and its local Mexican partner Gaia Ecologica S.A. DE C.V. The LOI sets out the basis under which MDF will provide PEMEX with the following services: Remediate and restore dams, grounds and polluted water bodies which have been contaminated by oil related activities, andManage urban solid waste and hazardous residuals generated by the active installations on oil fields belonging to PEMEX. Progression from LOI to a legally binding contract is subject to the completion and full commissioning of the Facility and all appropriate permits being in place.  A water handling and treatment permit (a key requirement for the commissioning of the Facility) was obtained in February 2016 from CONAGUA (the Mexican National Commission of Water).   It is intended that once the Facility is fully commissioned it will operate continuously, with a processing capacity of up to 845 tonnes per day.  On the basis of the Company’s knowledge of similar plants in South Texas, it believes that the Facility will have the potential to generate significant revenue. For the time being the Comalcalco facility is generating some contribution towards its costs, by offering public scale (weight measurement) services to local trucking companies. Northcote Chairman Ross Warner said, “We have always said that the opening up of Mexico’s oil and gas sector represents a once in a generation opportunity to companies operating in that sector.  Today’s LOI with PEMEX demonstrates that Northcote is becoming increasingly well positioned to take advantage of some of those potential opportunities.  Once our Facility is fully operational we believe it will contribute profits and revenue streams, to complement the Company’s existing business which is building up our production base at the Shoats Creek field in Louisiana.  More fundamentally, if successful, we believe it will provide us with an excellent reference point from which to iden

"Well I think we will be in a better position to judge him shortly. " big smiles : ) And absolutely spot on. Not only Shoats Creek imo

I can see you're going to be very disappointed labrat, sell up before it's too late... Your clear frustration repeated again I see. I cannot answer those questions on a public board...I've told you before....but you keep repeating your requests.....no go...

no one has said it was the best thing since sliced bread - RC has always said (for shareholders who bothered to talk to their CEO) that there will come a point when a company needs new leadership and when that time arrives, he will step down, pass the reigns to someone else who has the skill set to take it to the next level...simple and not unusual strategy and there is nothing secret about his CV (although it has now been removed from a public place, have no idea why) - I sense you display frustration because you don't have all the answers.....hence the flippant skip comment I guess.... Now if you'd asked the right questions at the right time........you might better informed, and that from my experience is the way the world works... Be patient, you've been around for a long time. When you have the full facts then you can be as flippant as you want, lol

yes, natural gas futures point to some lucrative jam today for NCT - starting with LM14 about to get hooked up; then other gaseous zones being targeted as we've been told. The model worked on $2 gas (ask the right questions), so $3 means 50% to the top line jam. Not difficult to see why gas is now the priority, even more so as oil prices have slipped. http://seekingalpha.com/article/3993538-natural-gas-rejects-higher-price-first-time

bigtimber - can you just get on with finishing off those gas tie ins, lol

There has been no breach of any confidentiality; like you I have asked questions and been given answers - even you have said yourself you cannot post those answers on a public board. Likewise. I have been asking further questions about Shoats Creek after last weeks RNS; I am getting answers but I cannot post them here because of LSE rules. But all looking very good : )