Northcote Energy said it continues to review the terms of awards for potential Mexican opportunities with MX Oil.
Northcote has the option of a 20% stake in MX Oil’s four land contract areas it was awarded in Veracruz, alongside local partner Geo Estratos, during the third phase of the Bid Round 1 Licensing Round.
All four LCAs, namely Tecolutla, Ponton, La Laja and Paso de Oro, are located in the prolific Tampico-Misantla Basin, which has to date produced around six billion barrels of oil and currently produces approximately 70,000 barrels of oil per day.
Per the terms of the participation agreement MX Oil will formally notify Northcote that it has procured a bid and Northcote will then have 20 business days to elect to participate in the project.
In a statement, it said: “Northcote continues to review the terms of the awards and information provided by MX Oil and will notify the market of its election in due course.”
MX Oil’s chief executive Stefan Olivier, said: “Drilling and seismic techniques and technologies have progressed significantly since these fields were first discovered and developed, as evidenced by the transformation of the US energy sector in recent years.
“By applying advanced technology and techniques such as 3-D seismic surveying and drilling horizontal wells, there is a clearly defined and low risk route to increase the reserves and production profiles of all four fields.
“We now have the key elements in place to build a leading Mexican focused oil and gas investing company.”