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Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas

13 July 2015

Northcote Energy Ltd ('Northcote' or 'the Company')

Divestment of Interest in South Weslaco Gas Unit

Northcote (AIM: NCT) announces that it has transferred its entire interest in the South Weslaco Gas Field, Hidalgo County, Texas ("South Weslaco") to Springer Energy Partners, LP ('Springer Energy'). Springer Energy is a US based partnership in which Northcote has been granted a 48% equity stake in exchange for the asset transfer. The divestment is in line with the Company's strategy to focus on its core US properties including the producing Shoat's Creek Field in Louisiana, as well as its existing opportunities in Mexico and Indonesia.

Northcote has sold its entire interest in South Weslaco for US$350,000 which is to be settled through the issue of partnership units in Springer Energy and a $10,000 cash contribution to Northcote's costs. Springer now has assets totalling $750,000, with private US investors having contributed US$350,000 in cash in exchange for partnership units. The cash is expected to be invested in Oil & Gas drilling activity, with its first investment being a 7% interest in the ongoing Shoats Creek new drilling programme.

Going forward, Springer Energy may accept additional investment at the sole discretion of Northcote and its partners, which may dilute Northcote's 48% interest in the enlarged partnership. Northcote will act as Administrative General Partner and, in such capacity, will earn an additional fee for administering Springer Energy and will retain an interest in the profitability of Springer Energy over and above its aforementioned 48% interest.

South Weslaco has historically contributed approximately 70.8 Mcf per day or, on a 6:1 basis, 11.8 BOE/d net to Northcote, and is the third Northcote asset in the ongoing planned asset disposal programme. As at 31 December 2014 South Weslaco was valued at $350,000 in Northcote's Balance Sheet

Northcote Chief Executive Randy Connally said, "This transaction allows us to use a non-core asset to structure a vehicle that will continue to deliver a stream of cash flow from South Weslaco and give us access to upside from the investments made by Springer Energy."

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For further information visit www.northcoteenergy.com or contact the following:

Notes:

Northcote Energy Limited is an entrepreneurial energy company with diverse interests. The Company combines a portfolio of US exploration and production assets in Louisiana and Oklahoma with the development of new business opportunities in the US and also in Mexico, such as its participation agreement with MX Oil PLC and agreement with Gaia Ecologica as well as Indonesia via a strategic relationship with CEB Resources.