Member Info for orslega

Yes, RC is still there, whether he is control is another matter, I suspect not as the Chairman has commented in the last two RNSs. Part of the transition imo He is still fielding shareholders questions where he is able to comment.

20/4/2016: Under the supervision of Gaia, the following steps have been completed at the site of the Facility in recent months: Completion of construction pad for the rock and soil processing equipment and further improvements required to support the intended remediation and recycling operations; Acquired and installed a scale on site to weigh oil cuttings brought to the site - this equipment will be used on a continuous 24 hours per day, 7 days per week basis; Have ordered equipment for final completion of facility The existing on-site structure has been re-modelled as the operations office and a dormitory area for use by workers has been built to accommodate the demanding operational tempo of the facility on commissioning; Operational safety and environmental training initiated for key members of the local team to provide for a best-in-class safe and environmentally friendly operation; and, Key water handling and treatment permit obtained in February 2016 by the CONAGUA (National Commission of Water) necessary for commissioning the plant will also allow MDF to move forward with service contracts previously announced in 2015. 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

yes, JVs will be in play once commissioning is complete; imo RC said that completion on the Mayan plant was so important as that would open many more doors for NCT (there was also local government following/support which meant the project could not fail) ......he was always one step ahead of himself, but he also talked about another RP project close to another MX port...will need to check my notes cannot remember where atm but he said the design/modelling of Mayan could easily be replicated/upscaled when the time was right....there are very good margins on the RP model which will mean decent cashflow back to NCT to recover the $1M they have spent as part of NCT investment.....

well you missed out on a very good and informed post...this was addressed to Tragic.....it is very relevant to our discussion; have a read and see the commercial points being made by Helpful... "I am quite convinced there is no point in explaining anything to you but nonetheless here goes: NCT is not the sole investor in Shoats Creek: it has two partners RRR and GCW. RRR and GCW are investors in some of the wells but not all. Currently NCT, RRR and GCW cannot sell gas; NCT now has an agreement but they need the piping in place and the tap in hooked up. The estimated cost of the work is less than $450k. Why would NCT stump up the whole of the $450k and allow RRR and GCW free use of the system to sell their gas? NCT have said that LM14 is going to be hooked up and RRR have confirmed that currently LM20 is not going to be hooked up. If NCT funds the whole of the $450k it will just hook up LM14, RC#1 and RC#2 and the other workovers that it owns. Because the oil price has softened, the stabilised production at LM20 is lower and the gas price has gone up, selling the gas has become more important. What happens next is down to commercial negotiation: Q1 how soon do RRR and GCW want LM19, LM20, LM21 and LM22 hooked up and what is it worth to them? Answer is, a lot Q2 if they are going to fund either all or part of the $450k do they want exposure to the oil and gas from the workovers? What is it worth to them? Answer based on LM14 is, a lot. NCT has just proved that LM14 is worth a lot to it and that it makes sense just to hook up its workovers. The ball is now in RRR's and GCW's half of the court. RRR has said it will update the market shortly. Today's RNS by NCT was NCT playing hard ball and making it quite clear it was worth going ahead purely for LM14 to which RRR and GCW have no exposure. You should be worried about RRR not NCT. Randy was too nice. IMHO DYOR

....who is the President of SCDI? That has no bearing on the matter? It is not as cast in stone as you seem to imply. imo

no mention of SCDI - so you saying SCDI as operator has no say then? Think again.

"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 above is out of date - 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" Why would they have increased production capacity? Contract demand? ps 90 days since 20/4/2016 has been and gone.......we must be close on that update...

big timber, re offshore - indeed, that was always the stated plan (fancy a JV with a barge service company) from RNS "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."

From SC update RNS - so they have said, it is all about getting a better understanding of the field. Has the location of LM22 been decided? It looks like still a moving target - but if workovers are providing better data surely the project partners will want to ensure that they have the best location to spend $800,000+. If I were sharing that cost I'd like the best available data. If that means workovers where NCT get the edge, all the better for negotiating. Must keep in mind that SCDI is the operator and they are in ones in control. "Finally, it is worth mentioning that a certain number of the recompletion projects, LM#19 for instance, were undertaken in part to obtain additional information about reservoir quality in different parts of the field, to be used in planning the location of future wells - including LM#22."

Don't you think the 4 parties, NCT/SCDI/GCW/RRR might think their unspent "committed" LM21/22 monies might be better spent now on workovers given what they now see at LM14? (Assuming SCDI/NCT are happy to negotiate) After all they have many more workover targets identified; as previously mentioned in the RNS when they worked over LM19, the data from that is helping positioning LM22 drill. Surely more of these workovers gives a better picture of the SC field; and based on that plans change. That has been demonstrated already. RC has actually positioned NCT very well here. See Helpful's post yesterday, it explains it very well. Short n curlies.

You are assuming that LM21/22 proceed near term; with permits still not applied (nothing on Sonris) do you not consider that plans may have changed in favour of very cost effective workovers? Not saying LM21/22 won't happen but it looks very much (as cash is tight) that they will not be priority. About cashflow right now and directing investment where NCT can get immediate and potential very good returns, i.e. LM14. "Northcote's net share of costs associated with these activities is approximately US$500,000 - including the impact of carried interests, the net cash requirement falls to approximately US$300,000, all of which will be funded from existing cash resources" I am also hearing that LM14 has caused quite a stir in SC gas interests. NCT holding 52% revenue interest put them in a very strong position if someone wanted to negotiate. Who says NCT will be picking up their (significantly less) proportion of $450K cost? The RNS didn't say that, all it said was the estimated cost. "It is estimated the total cost of this initial work will be less than US$450,000. Gas sales are expected to commence after completion of this work." Wonder how much cash is being generated right now at the Remediation Plant? Plenty of ways to skin it, imo

all buys so far, 2 V 1 a few taking position maybe for news next week, imo

peters - I am not expecting it to be quiet very much longer; there will be plenty to discuss very soon imo SC news yesterday was material and when the rest of the jigsaw is revealed even more so; just my opinion of course....but there is plenty to see even without enquiring of the company.

https://northcoteenergyresearchblog.wordpress.com See still down, a bigger update (in addition to SC gas news) is being worked on imo (although not an official blog, RC has referenced the blog before as a very good source of information and research for all things NCT). In the past the blog has always been taken down for updating. I believe it will up and running next week i.e. I expect news : )

Northcote agrees gas sales deal at Shoats Creek Share Gas is a bonus for Northcote at Shoats Creek Northcote Energy Limited (LON:NCT OTCMKTS:NRHCF)) expects to increase production from its Shoats Creek operation in Louisiana by 450% through a new gas sales deal. The agreement, with Enerfin Field Services, runs for three years and will see the Lutcher Moore#14 well tied into new gas lines. http://www.proactiveinvestors.co.uk/companies/news/128757/northcote-agrees-gas-sales-deal-at-shoats-creek-128757.html

And just for clarification, by my calculations RC current shareholding is below 3% - in keeping the company alive this last 6 months he also has taken a dilution in his % shareholding, like his fellow shareholders.

Briarbank - if RC had gone it would have to have been announced. He is still a director today but I think we are in the transition of handover. These things take time particularly if it has been planned for a while which I believe is the case. imo

Peckham - you're correct - 3% is irrelevant as he is still a director of the company. Any sales or buys need reporting.

Blingybird / think you're spot on / he's not offloading as NCT is on the verge of major change. Not forgetting he's invested over $300K in NCT and down more than anyone here. He like most need a serious about turn. I recall a conversation I had a while back and he made it clear that if someone could grow the opportunities he has created better than he could he would step aside. I suspect that point may have been reached - RC in my book is foremost a deal maker, putting the building blocks in place and recognising the qualities of others who might be better equipped to take the business streams to the next level. A great quality in an entrepreneur to recognise that. Let's see what transpires.

Literally zero volume relative to current shares in issue in these last few weeks / see what happens soon when news breaks - ie full operational update on a number of fronts, interesting will more than an understatement imo