Northcote is pleased to announce the incorporation of a Mexican subsidiary, Northcote Mexico S de RL de CV ('Northcote Mexico'), which is to serve as the primary operating company for its projects and ventures in Mexico. This update is in line with Northcote's strategy to pursue business development opportunities within Mexico's vast energy sector which has recently been reopened to international operators. Mexico is one of three areas of interest for Northcote, alongside its existing onshore US asset base and opportunities it is reviewing in tandem with its partners in the Indonesian oil and gas sector.
As announced on 30 March 2015, the Company has established a joint venture with Gaia Ecologica S.A. DE C.V ('Gaia Ecologica') to secure contracts and business opportunities ranging from oil field services, environmental remediation, waste water treatment to oil and gas development concessions and production sharing agreements in Mexico. The partners are reviewing a number of potential investments, the most advanced of which is the construction of a plant to remediate rock, water and other waste generated in the drilling and workover of oil wells.
Abraham Achar said: "This is an important first step in the roll-out of Northcote's strategy in Mexico, as it provides us with the appropriate corporate structure through which we can secure and execute the various potential initiatives we are currently evaluating in the country. We are highly encouraged by the progress made to date and we anticipate having further news on our strategy and projects in the near future, as we look to expose our shareholders to the huge opportunity that the reopening of the Mexican energy sector offers."
