NXT Energy Solutions Awarded $US13.4m Survey Contract by YPFB
VANCOUVER, BC / ACCESSWIRE / May 14, 2015 / NXT
Energy Solutions (TSX Venture: SFD, OTCQB: NSFDF) announced on Tuesday that
they have now signed on with Yacimientos Petrolíferos Fiscales
Bolivianos (YPFB), the national oil company of Bolivia to help identify
promising areas for oil and gas prospecting.
The company provides
an airborne solution to oil and gas prospecting companies through
Stress Field Detection SFD(R), a highly cost-efficient, green method of
surveying terrain from the sky for trapped fluid reservoirs of oil or
gas.
National oil companies have been a particular source of
business for the company, with other government contracts with PEMEX of
Mexico and PPL of Pakistan.
The new contract with Bolivia's YPFB
marks the company's single biggest contract to date, at US$13.4m. As
part of the deal, NXT Energy will receive 20% of the payment in advance
of the survey, which is expected in May.
Commenting on the announcement, President and Chief Executive Officer George Liszicasz said:
"We
are very proud to have received this significant contract with YPFB,
one of the major NOCs in South America. Given the large frontier areas
in Bolivia, we view this project as the first step in building a
strategic long-term partnership with YPFB and its subsidiaries, and are
looking forward to undertaking this exciting new project."
On
Thursday last week, the company held a conference call to update
stakeholders on progress. CEO Liszicasz pointed out that NOCs prevail
through the oil price dip, because they contribute to national budgets,
they are still commissioned to find new prospects.
While NOCs are
pursuing new prospects, fiscal efficiency still matters. Mackie
Research noted in comments back in February that SFD(R) can be between 10
and 30 times cheaper than seismic. The aerial survey isn't currently
intended to replace seismic, but it does add a highly accurate layer of
confirmation to data, allowing more effective decision-making.
As of the last conference call, the company reported having a strong financial standpoint with CAD$5m in the bank.
Shares are trading at $2.07, near all-time highs and has a market cap of $90m.
By Jonathan Nolan
SOURCE: Venture Cap News