Northcote Energy completes raising for Mexico project

Northcote Energy said it had completed its £0.5m capital raising through a placing of 1.6m shares to complete the Mayan Drilling Fluids remediation plant in Mexico “while retaining adequate working capital and flexibility to consider other strategic opportunities available to the company”.

Northcote owns 51% of Mayan Drilling Fluids (MDF), a joint venture company it formed with local Mexican partner Gaia Ecologica to provide recycling and remediation services in Mexico.

MDF is currently focused on constructing a facility in Comalcalco, Mexico which will provide waste recycling and remediation services to local industry including the recycling of oil cuttings and the provision of other oil field services to the reopening energy sector, Northcote said.

Having slowed plant development in Autumn 2015 until the Lutcher Moore #20 well at Shoats Creek was completed, Northcote and Gaia are now moving forward to complete the facility.

Approximately $0.38m (£0.26m) will be immediately funded by the company for purposes of fully completing and commissioning the plant within 90 days.

“Upon completion, the facility will commence operations on a 24 hour per day, seven 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,” Northcote said in a statement.