28 Aug 2013 07:00
NORTHCOTE ENERGY LIMITED - Acquisition of Producing Leases in TexasNORTHCOTE ENERGY LIMITED - Acquisition of Producing Leases in Texas
PR Newswire
London, August 27
Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas 28 August 2013 Northcote Energy Limited (`Northcote' or the `Company') Acquisition of producing leases in Texas Northcote Energy, an onshore US oil and gas exploration and production company,is pleased to announce that it has entered into an agreement to acquire up to a25% working interest (`WI') in certain producing leases at the South WeslacoField, Hidalgo County, Texas from Aminex PLC (`Aminex'), a fully listed oil andgas company (`the Acquisition'). South Weslaco is a non-operated, predominantly gas focussed property with fourcurrently producing wells, which hold over 6,000 acres by production.Northcote's interest in the producing wells will be a 12.5% WI in one producingwell and 25% WI in the remaining three wells. During the six month periodending 30 June 2013, the net interest produced 29 BOEPD and generated averagerevenues of over US$16,000 per month. The effective date for the Acquisition will be 1 September 2013 and theconsideration being paid consists of US$150,000 in cash and 12,348,372 newordinary shares of no par value in the Company (`Ordinary Shares'), whichequates to approximately $450,000 (at yesterday's closing price of 1.5 penceper share). Application will be made for the new Ordinary Shares, which willrank pari passu with the existing shares in issue, to be admitted to trading onAIM upon completion of the Acquisition. The new Ordinary Shares will be subjectto a 12 month conditional lock-in. Post completion of the Acquisition, it is intended that one third (circa 8.3%WI) of the acquired interest in South Weslaco will be assigned to NorthcoteDrilling Partners LP for US$150,000 cash. Northcote Chief Executive Randy Connally said, "This acquisition does not alterour focus on growing our production from our Mississippi Lime assets inOklahoma; but the opportunity to acquire an accretive interest in a set ofestablished assets, located in an area of South Texas that we like and whichholds significant acreage for several decades to come, was too good to passup." **ENDS** For further information and the full Admission document visitwww.northcoteenergy.com, see below or contact the following: Randy Connally Northcote Energy Ltd +01 214 675 7579 Ross Warner Northcote Energy Ltd +44 7760 487 769 Dan Jorgensen Northcote Energy Ltd +44 (0) 20 7024 8391 Roland Cornish Beaumont Cornish Ltd +44 (0) 20 7628 3396 Jerry Keen Shore Capital Stockbrokers +44 (0) 20 7408 4090 Limited Bidhi Bhoma Shore Capital Stockbrokers +44 (0) 20 7408 4090 Limited Hugo de Salis St Brides Media and Finance +44 (0) 20 7236 1177 Ltd Elisabeth Cowell St Brides Media and Finance +44 (0) 20 7236 1177 Ltd Notes: Northcote Energy Ltd is a revenue generative US onshore oil and gas productioncompany focussed on the rapidly emerging Mississippi Lime formation inOklahoma. The Company participates with leading operators, including MidstatesPetroleum and Chesapeake Energy, in low risk development plays where advancedtechniques, such as horizontal drilling and fracking, are used to unlock knownoil accumulations and dramatically improve recovery rates. Management isfocused on increasing production through a multi-well drilling and frackingcampaign in 2013.