11 Aug 2015 07:00
NORTHCOTE ENERGY LIMITED - First Revenue Generative Business in MexicoNORTHCOTE ENERGY LIMITED - First Revenue Generative Business in Mexico
PR Newswire
London, August 10
Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas
11 August 2015
Northcote Energy Ltd (‘Northcote’ or ‘the Company’)
First Revenue Generative Business in Mexico
Northcote is pleased to announce that Mayan Drilling Fluids (‘MDF’), its joint venture formed to develop a remediation facility in Comalcalco, Mexico, has entered into an agreement whereby it will perform remediation services with a potential value in the region of US$887,500. This work will be undertaken ahead of construction of the facility and utilise the remediation team that MDF already has in place.
MDF will operate as a sub-contractor and will be responsible for the remediation services on contaminated land at four different locations spanning approximately 7.4 hectares in total The services are to be completed over the next 3 to 4 months and will be performed using existing resources available to the joint venture The estimated revenues associated with completing the services at all four locations are estimated to be 14.3 million Pesos (US$887,500) Positive cashflow generated by the contract will make a substantial contribution towards the construction of the recently announced remediation facilityNorthcote Managing Director Randall J. Connally said, “This initial contract is an excellent first step for our Mexican joint venture and validates our belief in the market opportunity. The cashflows have the potential to make a significant contribution to the costs of completing our remediation plant. In addition, this work can be undertaken using the joint venture's existing resources without affecting our ability to complete our plant on schedule.
“While the plant we are building will serve to remediate drill cuttings, it will also provide a platform to take on remediation work in the greater area, much of which will have little or nothing to do with drilling activity. We will be going after these contracts, large and small, as part of our day to day business in Mexico. I would further highlight that in any land remediation contract, one of the largest cost items is the disposal of contaminated soil and rock. As a result, once complete, our plant will give us a competitive advantage by allowing us to process contaminated soil and rock and capturing this additional revenue in our plant and re-sell the soil and rock, thereby enhancing the already attractive margins of these contracts.”
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For further information visit www.northcoteenergy.com or contact the following:
| Randy Connally | Northcote Energy Ltd | +1 214 550 5082 |
| Ross Warner | Northcote Energy Ltd | +44 7760 487 769 |
| Dan Jorgensen | Northcote Energy Ltd | +44 20 7236 1177 |
| Roland Cornish | Beaumont Cornish Ltd | +44 20 7628 3396 |
| James Biddle | Beaumont Cornish Ltd | +44 20 7628 3396 |
| Elliot Hance | Beaufort Securities Ltd | +44 20 7382 8300 |
| Nick Bealer | Cornhill Capital Limited | +44 20 7710 9612 |
| Elisabeth Cowell | St Brides Partners Limited | +44 20 7236 1177 |
Notes:
Northcote Energy Limited is an entrepreneurial energy company with diverse interests in Mexico, Indonesia as well as legacy assets in Louisiana and Oklahoma. The Company combines a portfolio of US exploration and production assets in Louisiana and Oklahoma with the development of new business opportunities in the US and also in Mexico, such as its participation agreement with MX Oil PLC and agreement with Gaia Ecologica as well as Indonesia via a strategic relationship with CEB Resources.