Member Info for orslega

those Chinese again, this time moving in on Nigeria (no co-incidence at MXO then, lol) Oil price One or two things contributed yesterday as June Opec production was reported by Reuters to have risen slightly and against that the continuing concern about the prospects of a strike in Norway. Nigeria provided two pieces of news, firstly that there had been a cease fire between the Government and the rebels and secondly that in a visit to Beijing the Oil Minister had signed off on deals with Chinese companies worth about $80bn for oil and gas infrastructure. Having said all that some technical factors also affected the market, Brent expired at the close, there was a typical end of quarter and half sell-down for window dressing and of course with Independence Day on Monday it is a Bank Holiday to do lots of driving in….

.....the plan/model did not work out

Will have to agree to disagree. Simply explained. The plan/model did work out because of the dire state of oil market which followed the original deal with Geo - Geo we now know got caught out and could not raise the necessary; it is all very well saying, with benefit of hindsight, that they didn't choose the right partner - how many projects and the $billion have come unstuck in the last 18 months? Stating the obvious but that is the reality why the model did not work. Not rocket science really. But to be clear NCT did not fund anything on that deal. if oil had remained at $50 through the whole process, would the model have worked? I think it probably would have. But the collapse into $20s closed many avenues, even when things pick, too late lenders bruised heavily and closed shop. No one to blame really except the collapse of the markets.That is of course the risk of investing in oil companies and even more so AIM minnows. Right now though plenty of bargain basement opportunities in this sector. imo

Gaia JV - I will try and find out - not that much hangs on it......it's happening, that's the main thing : )

TOTAL ADMINISTRATIVE EXPENSES = $5,660,000 (approx. £4.2m) Of which $1.6M were for all staff (12 full-time) costs, the $4M balance was impairment and other professionals costs....

Mr M that bad the sp has crashed this morning, not...........it is more than priced in, isn't that is what the market is saying?

they introduced the parties, but at no cost to NCT - that's the point - it remains to be seen whether they will profit on it. MXO screwed up not NCT, who are an investor, no control. The model has not worked to date, agreed, but it is no correct too say, it did not work. Time will tell. Stating the obvious, MXO has to be worth at least 2p before the warrants feature. There is no risk being taken by anyone until the warrants are actually exercised, until then it is pretty academic. Just really depends on many different factors what a third party think the value to them might be worth at that time. I can imagine the Chinese MX investors might have some interest.

You haven't commented on the model - you said no free carry. That is not what I believe NCT are trying to achieve for its shareholders. Introductions, deal done, participation rights/warrants value enhanced, then total or partial exit (free carry). When MXO get to 2p + they are then worth money to NCT - for starters £300,000 for each 1p over 2p on MXO share price. It's like an option, they could exercise in conjunction with third part investor, and take their profit. They don't need to find the cash to exercise in that scenario. They skim the profit on top line over 2p. They are after all an investing company. imo

Your link says Eco Logic SA de CV But NCT did their joint venture with Gaia Ecologica S.A. DE C.V

the link was from the blog.....you saying the blog has got that wrong?

that NCT has $17.4M of tax losses carried forward at 31/12/2015...... so, as NCT turns the corner, we will have tax free earnings for some time, every little helps...

just picking up on labratt's point yesterday "The MXO example where NCT provided introductions, they still had to fund their share of the stake. ADL, again despite introductions they had to fund their share of the stake. No free carry's." NCT have not paid anything (yet) for their Participation Rts in MXO, nor have they paid anything to receive the 38M warrants; yes they have an exercise price on the warrants but they paid nothing for those. Both were awarded for the MX introductions. You say no free carry, that is premature. Yes if MXO do something in MXO, NCT has the automatic right to participate - that is the point, but they don't have to. From my understanding, and as discussed quite a bit here, as an investing company, the plan would be for NCT to farm out part of the Participation rights, such that they end up with cash which would fund their end. Hence free carry concept. As you know NCT have fully funded their ADL Participation Right - now what do you think may happen ADL announce the next development on TOE. I expect NCT to farm out and recover it's costs but retaining a reduced interest. But it could be they may not if it is attractive as some think. The point is this. NCT have by negotiating deals for both NCT and ADL, put themselves in a position where they have automatic rights, which would not otherwise be there. If NCT are able to scale up MXO/ADL model by a massive margin with another much bigger deal, would that add significant shareholder value? Go figure.

labratt - structure, funding etc - that was discussed yesterday, scroll back..... Do major players who might want to do business with NCT because of their relationships in Mexico equate to resources? Repeat, not all about funding. imo

For the linguists out there, Gaia website http://www.eegaia.com (see they are also into jigsaws, lol)

it is a 22 acre site per the blog https://northcoteenergyresearchblog.wordpress.com/remedial-plant/ (blog still says 700 ton daily capacity - the RNS update 20/4/ said "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"

Helpful, given the announcement yesterday that the RP has now commenced operations (and for the doubters, the Nomad would have insisted on evidence to that effect before the company could say precisely that), could it be that they are now starting to service these earlier contracts, worth around $800K from memory.... 20/4/2016 RNS "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."

from memory I think it is a 20 acre site....but this was an interesting point from RNS last July "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."

Agreed.

Helpful - I have no idea on that front.

enthusiasm = enth