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
