NXT Tech. Adopted for Nigerian Exploration EffortVery good news for NXT, which deploys its proprietary, hi-tech airborne exploration technology to reduce risk for producers seeking big targets. Hope they are successful in obtaining new contracts soon. When the oil price returns, this enviro-friendly technology should be in great demand.
From NXT News Release of March 30, 2020:
"On March 26, 2020, NXT received a $466,000 USD payment under its $8.9 million USD Nigerian SFD® survey contract, bringing total payments to date to $8.4 million USD. The contracted holdback amount of approximately $0.5 million USD is expected be paid to the Company upon the conclusion of negotiations for additional work under the current contract framework.
The Department of Petroleum Resources (the "DPR"), a department under the Federal Republic of Nigeria's Ministry of Petroleum Resources responsible for the sustainable development of Nigeria's oil and gas resources, provided written confirmation of their recommendation in favour of NXT's SFD® technology based on the recent survey results, noting specifically "in line with federal government aspiration to increase its Oil and Gas reserves base at a considerable reduced cost, risk and optimize exploration cycle, the Stress Field Detection SFD® technology is hereby adopted and recommended to be deployed as an independent data exploration tool for hydrocarbon exploration to identify and rank prospect-level leads to focus exploration efforts in the Nigerian Oil and Gas industry".
Mr. Liszicasz commented, "The DPR recommendation in support of our SFD® survey method is significant and reflects the value NXT and PE Energy delivered. We expect that recommendation from the Federal Republic of Nigeria, a regional leader in technological innovation, to resonate broadly throughout the African oil and gas industry. We completed the 5,000 km line survey in record time and recommended eight primary anomalies in April 2019. Drilling commenced at a location where one anomaly coincided with a seismic prospect, and the well was successfully completed in late 2019. Preliminary results demonstrate that when two independent tools (seismic and SFD®) operating on different physical principles recommend the same areas as prospective, the commercial success rate increases considerably. NXT expects to announce these results in the near future.
We are very pleased with our business development progress in Nigeria, other parts of Africa, Latin America and Asia. We will continue to provide updates on our progress as warranted."
For further information on the Nigerian SFD® survey, please refer to the Company's news releases dated March 28, 2019, July 3, 2019, July 30, 2019 and March 26, 2020.