Earnings Call: Q2 2021

Aug 16, 2021

Earnings release

Good day, ladies and gentlemen. My name is Faith, and I will be your conferencing operator today. At this time, I would like to welcome everyone to the NXT Energy Solutions 2021 Second Quarter End Operating and Financial Results Conference Call. All participants will be in listening only mode for the 1st part of the conference call with the ability to ask questions after the presentation by the company. So that all callers have an opportunity to ask their questions, we will limit each caller to one question and a follow-up question. I would now like to turn the meeting over to Mr. George Levikas, President and CEO of NXT Energy Solutions. Please go ahead, Mr. Levikas. Thank you, Fred. Welcome, and thank you, everyone, for joining us today for NXT Energy Solutions' 2nd order 2021 financial and operating results conference call. This is George Lisitas, and joining me Today's conference comes is Eugene Wojixin, Vice President of Finance and Chief Financial Officer Doctor. Siang Gui, Director of R&D Rashi Tipu, Director of Geosciences for Africa, Asia and Middle East And Enrique Mung, Director of Geofat Sciences for the Americas and Mohammed Saqib, Head of Interpretation and Project Engineer. The purpose of today's call is to briefly discuss the highlights of the release of NXT 2nd Quarter 2021 Financial and Operating Results. Following our update, we will Hopefully, we will open up the line for questions. Please note all statements made by the company and management during this call are subject to the reader's Advisory regarding forward looking information and non GAAP measures set forth in our Q2, 2021 press release And MD and A issued on August 12. All dollar amounts discussed in This conference call are in Canadian dollars unless otherwise stated. The complete financial and operating Results and consolidated financial statements for the Q2 of 2021 were published on August 12 And are available on Nxiv's website, SEDAR's website and soon will be available on Nxiv's website. Now over to Eugene for the financial review. Thank you, George, and welcome, everyone. As Dorek mentioned, our Q2 2021 financial statements and management discussion and analysis We filed on SEDAR's website on August 12 and will shortly be available on EDGAR. We are pleased with the quarter results, Especially with CAD729,000 of operating cash flow and net income of CAD1.53 million or CAD0.02 per share. From a financial perspective, the focus remained on supporting the execution of the business development effort and continuing to control and optimize costs. For the Q2, our financial results were as follows. Cash and short term investments were $3,780,000 at June 30, 2021, net working capital is $4,640,000 Operating activities provided $729,000 of cash during the quarter. Revenue was $3,140,000 in the 2nd quarter year to date. For the quarter, NXT recorded a net income of approximately CAD1.53 million or CAD0.02 per share based on CAD64.5 million weighted average common shares outstanding. This compares to a net loss of $1,480,000 in the Q2 of 2020 or $0.02 per share. For year to date, CNXG recorded a net loss of approximately $110,000 or $0.00 per share Based on 64,500,000 weighted average common shares outstanding, this compares to a net loss of CAD2.8 million during year to date 2020 or CAD0.04 For sure. Total operating expenses for the Q2 were 1 point $51,000,000 including survey costs. This includes noncash expenses of $500,000 related to amortization Stock based compensation expenses. Total operating expenses year to date were $3,120,000 including survey costs. This included noncash expenses of $900,000 related to amortization and stock based compensation expenses. General and administrative expenses decreased by $127,000 or 16% in the Q2 compared to 2020 for the following reasons. Salaries, benefits and consulting charges decreased $36,000 or 11% through the Canada Emergency Wage Subsidy. Board and professional fees and public company costs decreased $29,000 or 11% due to lower professional fees. Premises, administrative and overhead costs decreased to $107,000 for the quarter Higher by $45,000 or 22 percent due to employee share purchase plan, which commenced in the Q4 of 2020 It has approximately 75 percent employee participation. G and A expenses decreased $223,000 or 12% year to date 21 compared to 2020 for the following reasons. Forwarded professional fees and public company costs decreased $80,000 or 21% Due to lower professional fees, premises administrative overhead costs decreased $80,000 for the quarter or 21% Due to the receipt of the Canada Emergency Rent Subsidy, business development costs decreased $126,000 96 percent As travel restrictions continue due to the COVID-nineteen pandemic and stock based compensation was higher by $49,000 due to the employee share purchase and RSU plans. During the quarter, the company received $1,000,000 as cap loan with an interest rate of 4% for a 10 year term. To summarize some of the key financial points, we ended the quarter with $3,780,000 of cash and short term investments And a net working capital balance of $4,640,000 Net income for the quarter is $1,530,000 And net loss was $110,000 year to date. Cash provided by operations was $729,000 for the quarter, And we used $154,000 year to date. Our main focus continues to be on the execution of NXT's commercial opportunities. I would now like to hand the call back over to George to further discuss our business update and forward plans. Thank you. Thank you, Eugene. First, I want to convey my sincere hope that everyone is well and continues to stay healthy At this time, before I continue with the business development update, I would like to say a few words About NXP's position in light of the global energy changes as I see it. I want our shareholders to note The transition of our company into other energy sectors is coinciding with our transformation The application of SFD is fast, and we are constantly considering expanding opportunities That can provide increasing return to our shareholders. Therefore, our objective is to expand interviews into these new spaces And capitalize on the opportunities not only as a service provider, but as a participant via special purpose vehicle Where the reward can include royalty, bonus, equity and participation rights. Eugene mentioned that we recorded revenues of $3,780,000 and had a total cash inflows of $730,000 from operations, which shows a modest but initial result of our business development efforts. Revenues generated were from the sales of pre existing SFD data. Now continuing with the business update, I would like to also announce I mean, I'm also pleased to announce that the addition Mr. Jerry Sheehan, a highly rewarded energy explorationist to our Board of Directors on July 1, 2021. Mr. Sheehan has worked extensively in international oil and gas exploration, development and production for over 30 plus years. He has a broad technical and business development experience in Africa, South Asia and Europe, which he will bring into NXT. As the company seeks new markets for its proven SME tool. In the short period of time, He has joined NXT's Board. Jerry has already made his presence felt. If you'd like to know more about Jerry's background, please refer To the June 23 press release. On the technology development, I would like to note that the SMB technology has been Exclusively deployed today in the upstream hydrocarbon sector for the identification of potential hydrocarbon traps and reservoir. Recently, as you know, we have announced that the company is receiving advisory services and funding for up to $50,000 From the National Research Council of Canada Industrial Research Assistance Program or IRAP. To support this research and development of the XRD technology for geothermal applications. The IRAP funding follows an earlier announcement of the acquisition of the SMB Chill Thermal Technology Lines. The company now inbox on an exciting new chapter in transitioning itself as a multiple application solution provider for both the Oil and Gas and Geothermal Industries. The objective of IRR funding is to test, identify And analyze the desired elements of the SMD sensor response over known geothermal areas With the ultimate goal of developing and providing NXT with a clean geophysical service branch for renewable power initiatives in Canada and abroad. We are extremely pleased to have the support of IRAP To advance the application of SFD for exploring geothermal energy resources. We consider this As the first step in establishing a long term relationship with IRAP. Continuing on the Africa business development, NXT's most promising opportunity for significant revenue is tied with our recent success in Nigeria's Frontier Basin. We are very pleased that the country has this morning espoused into law the petroleum industry built to overhaul It's oil and gas industry. A significant portion of the capital will be allocated for exploration and producing oil and gas For the large population in the interior, because of that, Nigeria is our priority, and we believe our business with the NOC, Which is MMPC, the National Company and other international explorers will thrive for many years to come. We are excited about the continued positive development in other African countries as well. We recognize that Africa is one of the most important continents for sustained hydrocarbon and geothermal application. The utilization of SFD will mitigate overall exploration risk, provide time and cost effective solutions Now let us turn our attention to Latin America. We are equally focused on Latin America projects, where we have seen increased interest in SFD application. A number of SFD recommendations have been treated successfully over the years in Mexico, Bolivia, Colombia and Argentina. We anticipate these successes will lead to new contract opportunities In Latin America, with respect to the Middle East and Asia and executing engaged in continued discussions With interesting parties, prospects are developing progressively in spite of the COVID-nineteen pandemic, which is currently ramping With respect to the GT opportunities, I would like to say that I'm pleased There are a number of companies already that would consider using SMD GT, the geothermal is GT. And we are hopeful to have our 1st geothermal project announced this year. In summary, hydrocarbon survey opportunities continue to progress well in our core areas in Africa, Mexico, Asia And South America. In addition, we are in discussions with multiple geothermal companies about providing SAP services. For these reasons, we are optimistic about the second half of twenty twenty one, and we will remain focused A couple of notes about the upcoming Sidoti conference. Pleased to note that Eugene and I will be presenting At the Sidoti August Michael Kapp Conference Wednesday, August 18, which is tomorrow, 11:30 a. M. Eastern Standard Time, 8:30 a. M. Pacific Standard Time. Please refer to the press release issued on August 11 for instructions on how to view the presentation. In conclusion, on behalf of our Board of Directors and the entire team at NXT, I want to thank you, All our shareholders for their continued support. We wish you the best of health to you and your families. I now ask the operator, Faith, to open the line for questioning. Thank you, sir. So that all callers have an opportunity to answer your question, we will limit each caller to one question and a follow-up question. Your first question comes from the line of Thomas Wood from Woodlands. Your line is open. Hey, guys. You said you had any calls. Just wanted to say, first off, I really appreciate all you guys have been doing. It's been a really tough year. I've been a long time investor, like nearly a decade. And I feel like everybody on this call, the story we're all telling ourselves about NXT is it's this amazing game changing technology, I think we've all bought into that. But I think also over the last few years, it's just felt like we've faced a ton of skepticism. And I'm excited for all the things that are up and coming. I'm super excited about the geothermal front. I'm wondering from, I guess, I'd call it a marketing standpoint, if you guys are In terms of the story that you're able to tell here, like do we have a test that we could be doing that would be Proving the technology in a more undeniable way. Is there some sort of independent body that could be verifying stuff that we're doing? Because right now, it just feels like for the last years, we've been facing all Skepticism and I don't want the great work that you guys are doing trying to get all these contracts to then be second guessed by the industry leaders. We are a tech company, I guess the question is How are we proving our disruption in a way that's easy and undeniable and digestible? That will be it. Thanks. Thank you, Thomas. I think that the your comments are valid and thank you. From the marketing perspective, what we found over the last couple of years that it's becoming easier. There are papers and we are very happy to share that with any of our investors as well Probably some of them we should post also on the website. We always telling me that we will do so. That now proves that this technology, this type of technology can be constructed, built And we have never shied away just regarding the best thing from a test. And Thomas, Every single national company and every oil company has jobs. We had done 2 tests actually in Nigeria. 1 was an onshore test and one was an offshore test. And in both cases, 2 different Divisions of the national company were involved and we were not on the airplane either. So the technology was independently tested onshore and offshore and we did it with flying colors. That's why we got the contract. That's why we are looking forward now for a long term, many years to come, A contract opportunity in Nigeria where we are going to be working potentially with the super majors and majors As well. So if you know anybody that I'm totally open Where we can do a test, we offered it to the industry. We offered it to a super major as well And they said that they don't understand the technology. Therefore, the test is not important to them. But if you do know Anybody that's a third party that would test the tool, they are willing to do a 1,000 line kilometer test Anywhere in the world, okay, as long as they have their G and G information And maybe Enrique or Ashil, you guys can add to this. They are the geologists, the geophysicist With respect to this question, I think he was referring to the geothermal testing, which is also being considered. That was So the marketing for the new branch of Yes, I'd say for either. I mean, just to specify No, I think we have brought in very important people from universities To review the technology and we had no problem. So on to Great. Yes, I guess the fundamental question is just Saying that we love the technology. We're excited about it. I think there are a lot of papers and research and I think there are these tests that you guys are doing. And I'm just wondering if there's ways that we can get that, I don't know, like a simpler story. And am I just be talking in marketing language so that it's Like you said, they don't understand the technology. Is there something so simple that we could put in front of people that like these guys did this, that would wow the world? And again, that's not a challenge. That's an encouragement because I'm excited by what's happened. So everybody, every major Oil and Gas Company tested the technology independently. Okay. So whether it is Pemex For Dan in Colombia, PRA did it and also the national company, GRG report is out there. They did it many years ago. It's all on the website as well, those ones. And maybe I just very slowly, I discard one of the tests Or maybe you can discuss the Shell Chevron 3 d test offshore in Nigeria Yes. So this is Rashid. Rashid is here. So George mentioned earlier like in Nigeria, We were tested by 2 different government authorities. 1 is like definitely the survey we were doing for The company, they initially planned for offshore, but they give us onshore areas right before we fly. The other one was on the offshore area. There nobody knows, we give them independent results for the test. And when we integrated with their geoscientist team, then we learned there were 2 super major companies there requesting for Drilling permission based on the seismic prospect. So SFD recommended those seismic prospect as independently Very fine, those seismic prospect, which was not known to the 2 prospects and 2 supermajor were looking for a provision And we completed that test in a while fly in like 3 hours and now Next day, they were requesting us to present the results. So it's like within 24 hours, we gave them a So that's something and that's why we got the approval from Nigerian authorities. That's all. They said this is the SFD is the only unconventional technology will be used to explore in frontier exploration and also Before drilling any well, we should use this technology. So I hope that answers your question. And if you want to talk about it more and you are interested in the papers or maybe you have some very good suggestions Regarding the marketing or any other aspects of the technology, please give me a call. Thanks, George. Appreciate how you guys are doing. Thank you so much. Your next question is from Michael Moore from Moore Capital. Your line is open. Yes. Hi. It's nice to see some decent working capital on the balance sheet and get some momentum out. I I just wondered, it's been a couple of years since you've been a Director of Sales. Is there any game plan here to Get a director of sales to make sure that all the leads and all the things that are happening are followed up on. And in particular, I'm wondering if Jerry Sheenan, who you said has business development experience in Africa, Asia, Europe, if he can help in this endeavor of Getting the technology out there a little better. Thank you, Mike. Thank you for your support. This is George. I just talked to Jerry yesterday. He's preparing a whole list of countries in Africa That we are going to be talking to and I can't go ahead of myself, but there are a number of countries That he has in mind and he has very good connections in those countries that we are considering As an opportunity that includes a number of the sub Sahara So we are very positive and very pleased with his involvement because everybody knows him. So it's a very, very good thing for NXT. He has a tremendous respect there. As you know, he was Heading Tullow's exploration and his The Jubilee field that is about 300,000,000 barrels offshore, it's he's doing. That's how Talo took off and he brought a number of new discoveries to that company And we are very, very pleased to have him to work with us. Okay. Thank you. Your next question is from Tucker Anderson from Above All Advisors. Your line is open. Hi George. How are you? Hi, Tucker. How are you? Fine. I hope you and your family have been safe during all the COVID. I'm fully vaccinated. Sometimes that hasn't stopped people from catching yet, but I'm glad you're Sounds like our patience is getting closer to being rewarded. My question was your comment on geothermal in Africa. I was not aware that Africa was really active market for geothermal. Are there projects there currently? Or it's just is this a case of there's enough potential, so SFP would be very helpful in identifying the projects? Yes. We are currently in negotiations and talks with a Very powerful funding capital excuse me, a funding firm, an investment banking firm That has several projects in Africa, including Kenya and Mozambique. And so we are establishing this relationship right now. They sought us out. The technical people know Rashid. I don't think I know anybody who doesn't know Rashid In the geoscience world or Enrique for that matter. So we are positioning ourselves For the geothermal activities also in Nigeria, there's a tremendous interest. So Yes. The answer is yes to your question. Good luck and congratulations on the working capital, as Mike said. Thank you so much. Thank you, Your next question is from David Appelman, a Private Investor. Your line is open. Hi, George. How are you doing? Hi. How are you? Not too bad. My question is, When is being done to get the information to the brokerage community and to get more Investors involved internationally with the company. Is there a marketing plan or is somebody in charge I'm doing that at this time. What the company is after right now is liquidity in the market. And I'd like to know what's being done to increase the knowledge base of the brokerage community. That's exactly what this conference that we just attended to is going to It's accomplished to start the whole process. And as we are going to generate more revenues and more contracts, we are just going to expand it So North America and then Europe and Asia at the same time. So I agree with you that The market our market, our stock is a little bit depressed, but The truth is that you cannot just inflate the share price. We want to deliver the goods and I think that we are on the right track now to do so. And Since I can't say everything on a conference call because it will be selective disclosure, But as we are making these announcements, these new opportunities, new contracts, you will see a significant increase in market share value. Your next question is from Peter Mork from Mork Capital Management. Your line is open. Hey, guys. Again, congrats on the revenue, the working capital and the earnings. That was great. A lot of optimism you're expressing for the kind of the back half of this year that we're already into. I was wondering if you could on a couple of different fronts give us some of the key milestones that we should be looking at as investors. And specifically on work in Africa, work in LatAm and Geothermal, if you could and I don't know if one person wants to answer that or but just what your next call is going to be in, let's call it, mid November. What are some of the keys that we should be looking for to show that this optimism that you're expressing is coming to fruition? Thanks. Yes. Hi, Peter. Rashid is here. So as you heard what you all were talking about, petroleum industry bill. The main objective for that petroleum industry bill for Nigeria is to promote exploration and exploitation For oil and gas in Nigeria. So what we are looking at now is A multi year project opportunities within Nigeria, especially since we are approved And tested technology in Nigeria and not only this will help in Nigeria, it will also help in us to getting the projects Outside Nigeria, other African countries. So we are seeing really very positive news for us In terms of business development in the region. Correct. Yes. So then how about like I would just say like Latin America and also the geothermal, What are some of the key markets we should be looking for there? Hey, Steve. So for Latin America, if you take a look at what's going on in Ecuador and Bolivia, we have been in video conference because It's really exciting what is happening there. They are decimating big funds for exploration, which is what's not happening in the past 2 or 3 years. So Bolivia, for example, is investing $1,400,000,000 on exploration and similarly Ecuador is investing $2,000,000,000 in exploration. And the goal is, at least for Equa or Petromasonas is to duplicate their production in the short term. Also, we are working in alliances with people in Mexico And in Latin America, that has allowed us to have a broader view of other new contacts in different countries. So this means that there are major service companies that we may be announcing alliances in the future. These companies have foot on the ground on many other countries that we will soon be reporting Great. And then just tying in the geothermal, I mean, one, Kind of following up on Thomas' question just to lead that off. You guys got this funding to prove out The technology or developed sensors, I guess, how does SFD specifically fit into this As a geothermal application in terms of exploration, maybe a little color on that? And is there some sort of like tests that could be So we could see a paper up on the website or whatnot proving that it works as you've done with the Oil and Gas. And again, just kind of tying it back to some of the milestones where we should be looking forward to know that there's something there. Well, we have a good start with we have 2 people who told us that ahead of us That this tool could be used for geothermal. One is a professor from Waterloo University and the other one is an experienced Geothermal expert both said we can use this, but we are more cautious than that and say, well, we Before using it directly, we like to take a look ourselves because they were very much ahead of us. But now, we can give you some specifics. Well, Peter, I think We can go with the schedule of ARAP, so we can conduct some test flight over known area. And then we can see in what aspect our sensor can be modified and also in what aspect Our data processing technology can be improved. So It is an ongoing process, and we are confident we should be able to achieve what we want to achieve. Are those test flights going to be in the next like before year end, in the next month? Like what's kind of the timing on that? Yes. I am just So what we're going to do is that we are already we already started the process. We already got Approval from IRAP, we are already doing it. We're going to be working with their specialists. They are introducing us to Laboratories, nodal fabrication, all sorts of things that are going to be happening here To build better and better sensors, we're working with the universities. So what's going to happen is that Once we are going to use the original SFD sensors to do the test lines, okay? First, very shortly, I think that it's going to happen in September. In Alberta, there are several Sites you know that we can fly over and test the technology. Once that is done, we're going to start The modifications, the finalizing the modifications for the new sensor because there are certain aspects that are shared. So you know that there are a number of common elements in fluid deposition and geothermal setting. So the deployment of SMD, material thermostatting will allow the clients to focus on the most favorable subsurface conditions, Which is basically ferocity connected mainly with permeability and you want to have a large area that is permeable So that you can use the you can optimize your geothermal activities. It's very, very important that you have a large area because otherwise your temperature would be You use that very, very quickly and the water will be cooled and then your geothermal site has to be closed. So SFD is an ideal technology to find this identify the subsurface conditions for heat And fluid circulation. And that will increase the chance of success and reduce the overall time and cost And also you do it in an environmentally friendly manner. So the Testing is going to take place in September. And once we modify it, we're going to come down also to the U. S. We're going to fly down. There are a number of sites there. 1 of them is 1,000 megawatts, largest in the world. So we're going to be flying over those areas as well. And we are going to land in Los Angeles, probably or San Francisco. And with the plane and the technology and anybody wants to come and see us, we're probably going to have a Function for our investors down there. So that is the plan actually. Also, Eugene, I mean, and we can mention that we have been blessed by the professors And Waterloo University, these guys are specialists in stress and so on. So we are on the right track. There is less and less resistance towards The technology and the technical capabilities of ours. So also, we are working with Very reputable geothermal companies now who are looking at us to help them identify This geothermal site, not just 1 or 2 projects, but ongoing projects and so on. So we have 3 of those right now and we are we believe that we are going to be able to execute one of them this year And hopefully, that's just going to open up a new chapter in our Lars, and we should put the results on the website. I totally agree with you because These are very, very important steps in the company's life and its future. Thanks so much guys. That was great. And again, appreciate the really like seeing the revenue and the strong quarter. It really showed your earnings potential. So thanks a lot. Thank you. Thank you, Peter. Let's just push over. Your next after you're from Stan Trillin from Morgan Stanley. Your line is open. Hi, George. Hi. One of the things that comes across to me is and this is something that's Concerning for a while is that you have so many irons in the fire, And you have a limited capital base to handle all of these opportunities. So what I would really like to know is, do you have a Specific plan of direct focus 1, 2, 3 on which items you're going after And what type of priority? Yes. Actually In the speech or during this conference call I mentioned, number one focus was Nigeria Because of the long term contract opportunity there, and I'm not talking about $5,000,000 here, Long term, significant numbers. Also the number 2 was Mexico And some of the new relationship that we are establishing with a service company That is taking us basically to this taking us I have to be very careful how I word it. But joined us in our quest for getting the contracts done In a number of Latin American countries and then we are focusing on the geothermal. The geothermal activities, 2 or 3 countries. We're never going to have a problem Acquiring the data, okay? And now that we have this new mapping algorithms developed, We are going to be able to do this much, much faster as long as we are conducting great surveys. So we are very, very positive and very hopeful That we can produce significant revenue without any change in the current So those are the 3 main components I would like to mention to you. Stan? Hello? Here we go to question presenters. Your next question would be from Nessa Ilk, an individual investor. Your line is open. Hi, George. Hi, everyone. Quick question, which is really a follow-up to what Dave was asking as Stan and to some extent, Peter. Now especially with respect to the last question, if you have the contracts in Nigeria signed and Subli, one more contract in South America. Would it be reasonable to expect that you will be listing On the NASDAQ, since you're a technology company, this, I think, would help market The company to institutional investors. And what are the benchmarks, if so, that we need to see in terms of the price So stock price and in terms of the contract volume such that, that can be expected to happen? Nisha, it's Eugene. Obviously, we're always looking at that opportunity. The benchmarks are relatively high, but it's going to come down to us executing, as you said, on contracts. And we believe once we've executed on 2 or 3 contracts that We should be able to go down that path. It will take about 3 months. It will take about 3 months. Yes. So that's from the $4 per share and signing of the after signing of the contracts, of course, obviously, and starting to execute And that's 3 more months after that, right? Yes. Okay. Thanks, guys. We would like to do it in Asia as fast as possible. I mean, it is a priority for us to be listed on a very serious market. Okay. Thanks, guys. Thank you, Nishu. We do have a follow-up question from Stan Schilling from Morgan Stanley. Your line is open. I don't know what happened. I either my line got dropped or my voice got shot. Thank you and thank you for the information on Nigeria. We've been talking about multiple contracts and I just want to know What is getting in the way of the announcement of the potential contracts? Is it the government? Is it politics? Is it intermediaries? I'm just curious about the mystical curtain that's been put up. That's a very good question actually Stan. The issue is here that we are used to dealing with North American companies and even if they function or operate in other countries, Things are much, much easier. Like if you recall, some contracts we concluded in North America in 2 weeks And we were flying in next week. So it's the way the people Operator, and in 3rd world countries, it's even harder. The bureaucracy is enormous. Everything is hand delivered, signed, 15 people have to sign one single contract. It's the same in Mexico, the same in Nigeria. And we just I mean, If you take a look, this bill that was just now done has been on the table for almost 2 years. And now finally, they are allocating 30% of all production revenue To the interior or the frontier exploration programs, and as I mentioned, SSD is the number one tool now in Nigeria. We knew that it's happening, it's going to happen, it's going to happen, but unfortunately, you cannot control national companies, How they operate or government people, how they negotiate and do things. It's as you I think you mentioned it well, it is bureaucracy in a sense that Everybody has to be happy, satisfied, then you can move the paper to the next payroll and so on and so forth, the next Branch of government. And in Nigeria, you have the national company, You have the Frontier Exploration people, You have several branches of the National Company, IPFL, MPDC and so on and so forth. Then you have the NPD, Which is the major tender board, then you have the ministry and on and on and on. But now we're in. So we are just waiting for them to give us the green light. That's all. Okay. And how far along are we With Mexico, because Mexico, we actually had a contract with them that I guess just that Expired. I don't know if it was expired or what happened. But is it a whole new Do we have to go through all of the pains and tribulations that we went through before? Or is it more streamlined there? It's more streamlined. I will take that last word that you said. This is Pemex, we are very optimistic with Pemex. We have an alliance with a service company that has It's doing services with them. 1 of the 3 companies are doing services with them. So That's unique. And they are the ones that have branches in the whole Latin American world and we are meeting with them. We are about to in conversations, we can say to be like the brothers. And they are they will facilitate. I will tell us, they did the job and I have done the footwork in Mexico and that We are still in the system with Pemex. The lack of activity was justifiable. There's no claim or nothing wrong with the service that Pemex did. And in fact, the last question I did was I sent a list of the discoveries That they have had inside our recommendations in Mexico, that goes from 2016 to 2020. So it's more than 5 or 6 Fields and production and good activity that we recommended as early as 2012. So similar to that, we have good results in Bolivia, discovery that came in, in 2020. And a new one in 2021, we have So they are aware of this. The only thing is that they are very slow. But we are pushing our We're in, and we have creative ways of making this contract work as soon as we possibly can. Okay, great. The last question has to do with geothermal and then I'm done. You can shoot me after that. Drew had mentioned that you think you can execute some further contracts With a U. S. Company on geothermal, just one question. I don't want to know who it is, but it will be a name That is recognizable to the people in the geothermal industry. Yes. We have Canadian companies that are they are very recognizable. They all have doctorates and everything. So the company, he means. No, no, no. The company. Also recognizable. So they have a history of worldwide Geothermal plants that have been found and they have a whole number of people in Who are experts in geothermal science basically and geology And they have built, I think in one country they did about 300 megawatts altogether, 30 megawatts, 20 megawatts, 15 megawatts plant that have been put together. So and they are here in Alberta now as well. And there are 2 Alberta companies. We have 1 overseas company, 2 overseas companies, 1 in South America and 1 in the Middle East. So as soon as we are ready, and that's what Doctor. Gui is trying to do. As soon as we are ready, he says we are ready, then we are off to the races. The only good thing about Geofem is that they have the government support. Yes. That's pharma. Yes. These companies here in Canada, they all have just think about it that the IRAP And NRCan, which is the National Research Council and so on, That we are dealing with that approved the technology. They also approved them for financing, for matching funds and we are talking about $25,000,000 $50,000,000 $100,000,000 each. So we are in good Situation as far as geothermal is concerned. And as Peter said, we will do the test. We'll do the test in Alberta. We'll do the testing in California. We know the sites. We know what we need to do. They are going to be working with us. I read on this And we are going to present our results properly to them and also to the technical people and the professors. And then Hopefully, we are going to be approved for the next funding and the next funding and the next funding and next funding. Okay. Thank you, guys. Keep plugging. Keep plugging. I appreciate it. Thank you so much, Stan. Thank you. Your last question is from the line of Tucker Anderson from Above All Advisors. Your line is open. Hi, George. Thanks for keeping all of us on the line and answering the questions. It occurred to me that one of the things that's Changed pretty dramatically in the last 6 months is the price of oil. And to the extent that COVID not only sort of interrupted the bureaucracy And there are other things on their mind. There was also a question about the long term demand. And the price of oil going up obviously has changed Economics of a lot of these projects. And is that a factor in that maybe they're more likely to be a shorter timeline to approval or not? Absolutely. Absolutely. I mean, they didn't even want to talk to us until the oil went over $40 So it's correct. It's just we just don't want any excuses In a sense, we don't want to have the oil prices and IQs because the national companies cannot stop drilling, okay? So their production is vital to the country. It's usually 40% on average of the GDP in developing countries. So Bolivia depends on it, Guatemala depends on it, Ecuador depends on it, Algeria, Nigeria, all these Countries, they all need to have significant oil revenues. And if they don't have it, the country goes into depression. So economically, so that's why it is so important what you said is that, yes, the oil price is a Major factor, but hopefully now it's going to be a positive thing for us because we can find it faster Than anybody else. So and that's the key. And our success rate is actually improved. So we are doing extremely well in that regard as well. Yes, I would think everybody would want to shorten the development cycle as much Possible. And some of the questions about the depression of demand due to COVID, it now looks like it's recovering. So good luck. Thank you so much, Thank you. There are no further questions at this time. Let me turn the call over to George for closing remarks. In that case, I would like to thank everybody for participating in our conference call, Wishing everybody safety and good health. And we are going to be Online hopefully very soon with you again and thank you for your questions. I think this was a good call in terms of Getting some revenues in and also that the interest is And the support is still there from you and we love you all. Thank you so much. This concludes today's conference call. Thank you for participating. You may now disconnect.