Clinch resources press release
Pemex Employs New Exploration Technology
TSX - Toronto Stock Exchange · United States
SOURCE: [Resource News Report] - Royal Dutch Shell (RDS-A-NYSE), Exon Mobile (XOM-NYSE) and BP (BP-NYSE) had combined 2011 sales of $1.3 trillion and net income of only $88 billion – a modest 7% profit margin.
Soaring exploration costs are threatening the oil industry’s bottom line.
Image: http://www.resourcenewsreport.com/wp-content/uploads/2012/09/rnr12.jpg
The cost of discovering each new barrel of oil has risen 300% over the last decade as old oil fields run dry and oil companies are forced into geologically challenging areas with deeper reservoirs.
State-owned Mexican oil giant Pemex (2.5 million barrels per day) has been searching for cost-cutting exploration technology as it moves from the shallow waters of the southern Gulf into deeper and potentially more profitable waters.
On September 12, 2012 Pemex signed a $4.7 million deal with NXT Energy Solutions (SFD-TSX.V) (NSFDF – OTCBB) inventers of a proprietary “disruptive” Airborne Survey Technology which radically reduces the cost and time of oil exploration.
SFD (Stress Field Detection) technology finds trapped reservoirs at stage I of the exploration cycle. SFD has already contributed to discoveries in Canada, USA and Colombia. They have a Backlog of contracts for 2012.
Even before the Pemex deal, SFD had a bullish balance sheet that suggested rapid adoption of their technology.
Image: http://www.resourcenewsreport.com/wp-content/uploads/2012/09/rnr21.jpg
Pemex is the world’s 4th largest oil producer. It paid 876 billion pesos in taxes last year, funding 30% of the federal Mexican budget. Pemex has about 14 billion barrels of reserves. Unlocking these reserves is vital to the future of Mexico. Pemex would not be interested in Beta testing an unproven technology.
Stress Field Detection works with tectonic movements. Stress can be in the form of compression, tensile, or shear stress causing distortions in the gravitational field.
Fluid trapping reservoirs will affect the stress around them impacting the direction/orientation of the gravitational field. Aircraft borne sensors detect orientation changes in the horizontal gravity field.
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Investment Highlights:
• NXT receives initial contract with PEMEX, the National Oil Company of Mexico • PEMEX project to be completed by Q4, 2012 • NXT is on track for record revenue year • NXT to commence previously announced South Asia US $2.67 million contract in September
NXT has commenced SFD® data acquisition and interpretation operations in Mexico.
PEMEX’s award of the contract was based on an extensive period of technical review, commercial review and validation and a test flight of NXT’s patent pending technology. The SFD® project covers large offshore and onshore areas. SFD® data acquisition will be completed in September, with delivery of NXT’s recommendations in December, 2012.
“Adding this premiere client from an untapped market builds upon our growth strategy, stated George Liszicasz, NXT’s President and CEO, “Within a 12 month period we will have conducted survey operations in Colombia, Argentina, Guatemala and now Mexico.”
NXT is actively pursuing new client prospects in Brazil, Colombia, Ecuador, Paraguay, Peru and Belize. The company intends to mobilize to South Asia to commence flying its previously awarded $2.67 million survey following completion of the data acquisition phase of the PEMEX project. Both projects are expected to be completed and delivered in Q4 2012, giving NXT another record year in revenue.
The annual global geophysical exploration spend is currently around $12 billion.
For NXT, the Pemex deal is a game changer – like a tech start-up signing on with Google. SFD-TSX.V is up 8% to $1.02 at 12 p.m. Eastern Standard Time.