26 Aug 2014 07:00
Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas
26 August 2014
Northcote Energy Ltd ('Northcote' or 'the Company')
Completes Shoats Creek Acquisition
Northcote (AIM: NCT) is pleased to announce that it has completed the acquisition of its interest in the 1,670 gross acre producing Shoats Creek Project ('Shoats Creek' or 'the Project') in Beauregard Parish, Louisiana, US. Northcote is now the operator of this project, which further strengthens the Company's portfolio beyond its operations in Oklahoma, where the Company has work ongoing across its properties, with the main focus being on the non-operated Zink Ranch Project.
Northcote CEO Randy Connally said, "We are very pleased with the approval of our transaction with Aminex. It sees us take operatorship of this important project where we plan to undertake active development at the Shoats Creek field in Louisiana, a prolific oil producing area. This is a highly exciting prospect with significant potential, where we have already identified a range of opportunities to increase production substantially from the development of multiple payzones over the coming weeks, months and years. As operator we are planning to hit the ground running and we believe that we will shortly be able to demonstrate to shareholders the extent of the opportunity acquired at Shoats Creek."
The completion of the transaction follows its approval by Aminex plc shareholders ('Aminex') at a General Meeting held by Aminex in London on Friday 22nd August 2014.
In line with the announcement dated 9 May 2014, the acquisition was structured so that Northcote acquired a 70% interest from Springer Oil & Gas, LLC, ('Springer Oil & Gas') a private US oil and gas company that is buying Aminex USA, Inc. This is being satisfied through the issue of 22,875,817 ordinary shares ('the consideration shares') valued at US$350,000 at 0.9p per share. In addition Northcote is committed to making production payments of US$10.00 per barrel, effective 1 January 2015, up to a maximum of US$3.15 million.
Simultaneously Northcote has farmed-down a 35% interest in Shoats Creek to North American Petroleum plc ('NAP') in return for a cash consideration of US$175,000. NAP has assumed its proportionate share of working interest and production payment commitments in the Project. Accordingly, Northcote retains a 35% interest in, and is operator of Shoats Creek. The acquisition of the interest in Shoats Creek has an effective date of 1 May 2014.
About Shoats Creek
The Shoats Creek interest field consists of interests in the Northcote operated leases, which include the Cockfield and Frio zones and an interest in an Area of Mutual Interest (AMI), known as the Wilcox Unit, which is operated by Indigo Minerals LLC. The following table shows Northcote's interest in the Shoats Creek Field:
Lease | Operator | Gross Acreage | WI % | NRI % |
Shoats leases | Northcote | 1,670 | 35.0 | 26.425 |
Wilcox Unit AMI | Indigo Minerals LLC | 960 | 17.5 | 13.125 |
Share Capital
Following admission of the consideration shares the Company's issued share capital will consist of 1,260,942,474 Ordinary Shares (`Enlarged Share Capital'). The consideration shares represent approximately 1.81 per cent. of the Enlarged Share Capital. Application has been made for the consideration shares to be admitted to trading on AIM ("Admission") and this is expected to occur on or before 31 August 2014.
**ENDS**
For further information visit www.northcoteenergy.com or contact the following:
Randy Connally | Northcote Energy Ltd | +1 214 675 7579 |
Ross Warner | Northcote Energy Ltd | +44 7760 487 769 |
Dan Jorgensen | Northcote Energy Ltd | +44 20 7024 8391 |
Roland Cornish | Beaumont Cornish Ltd | +44 20 7628 3396 |
Jerry Keen | Shore Capital Stockbrokers Limited | +44 20 7408 4090 |
Bidhi Bhoma | Shore Capital Stockbrokers Limited | +44 20 7408 4090 |
Stefan Olivier | Cornhill Capital Limited | +44 20 7710 9618 |
Hugo de Salis | St Brides Media and Finance Ltd | +44 20 7236 1177 |
Elisabeth Cowell | St Brides Media and Finance Ltd | +44 20 7236 1177 |
All of the technical information, including information in relation to reserves and resources that is contained in this announcement has been reviewed internally by the Company's Technical Director, Mr. Kevin Green. Mr. Kevin Green is a Petroleum Geologist who is a suitably qualified person with over 30 years' experience in assessing hydrocarbon reserves and has reviewed the release and consents to the inclusion of the technical information.
Notes:
Northcote Energy Ltd is a producing oil & gas company with a portfolio of US exploration and production assets principally focused in Osage County, Oklahoma. The Company has substantial acreage in the US where its primary focus is on the Pennsylvanian and Mississippi Lime formations. Northcote is currently undertaking a continuous 2014 work programme which includes recompletions, new wells, fracks and workover programmes in order to grow Northcote's production and reserves.