NCT.L Share News (NCT)

Northcote Energy has acquired a 37.5% working interest in the Alta Loma Field, a 444 gross acre property in Texas, which is operated by Activa Resources. Alta currently procudes 30.7 barrels of oil equivalent per day (boepd), or 8.6 boepd, from one producing well. Northcote paid a consideration of $50,000 and has also agreed to a pay a contingent consideration of $100,000, which will be paid on the successful drilling of a new well before 17 July 2015, provided it has initial production of more than 300 boepd. The group expects Activa to propose a new well within 12 months. Chief executive Randall Connally said: "As we build our production base on our core properties, adding high impact upside through the drill bit is a key part of creating the upside potential our shareholders expect. "This acquisition gives Northcote such a prospect which offsets the Sunny Ernst 1-2 which has been a very profitable well with cumulative production to date of over 71,900 barrels of oil and 2.2bn cubic feet of natural gas."NR