Northcote has an option to take 20% of any MX Oil interest in Mexico under a ten-year agreement signed in 2014.
MX Oil was awarded the Tecolutla, Ponton, La Laja and Paso de Oro licences in Veracruz.
After formal notification by MX, Northcote has 20 business days to decide whether to take up any of the developments. It will pay a pro-rata share of costs on those.
Northcote also holds 38.8mln warrants in MX Oil, which were triggered by the licence awards.
Randall Connally, Northcote’s managing director said he was elated by the successful outcome for MX Oil.
"MX Oil was our first foray into Mexico, followed by the Mayan Drilling Fluids plant.
“Our long term commitment to Mexico remains as strong today as it ever has been.
“While short term the immediate cash flow from the ongoing work at Shoats Creek is a powerful driver for our company, this development crystalizes value for us with respect to our efforts in Mexico."