27 Apr 2016 17:19
NORTHCOTE ENERGY LIMITED - Elects to Acquire Interest in Andalas’ ConcessionNORTHCOTE ENERGY LIMITED - Elects to Acquire Interest in Andalas’ Concession
PR Newswire
London, April 27
Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas
27 April 2016
Northcote Energy Ltd (‘Northcote’ or ‘the Company’)
Elects to Acquire a 3.75% Interest in Andalas’ Concession in Indonesia
Northcote (AIM: NCT) is pleased to announce that it has exercised its right to acquire a 3.75% working interest in the Tuba Obi East Technical Assistance Contract (‘TOE’), which is located in the South Sumatran basin approximately 30km north-west of Jambi city in Jambi province, Sumatra. This is in line with Northcote’s Participation Agreement with Andalas Energy & Power Plc (‘Andalas’), which is farming into a 30% interest in TOE. Further information regarding the Participation Agreement can be found in the press release dated 5 June 2015.
Highlights
In line with the Company’s strategy to create a diversified oil and gas company with investments across the oil and gas value chain TOE is the entry point for Andalas into the attractive Indonesian gas and power sector and any future gas production from the concession may support either: Gas export with the project located close to a major export route; or Gas-to-power being located in an area where a significant shortfall in power generation exists Andalas will undertake a work programme comprising technical studies and the drilling and testing of one well which would be put into production on success Wells drilled historically have tested gas in the key South Sumatra hydrocarbon bearing formations, namely, the Air Benakat Formation (‘ABF’) and the Talang Akar Formation (‘TAF’) Andalas’ technical analysis indicates that this reservoir zone contains potentially substantial gas resources that can be proven via the drilling and flow testing of the proposed TOE-2 well Northcote to fund its proportional share of the costs, estimated at a total gross amount of US$200,000, for which it is fully fundedNorthcote Managing Director Randall Connally said, "Indonesia is a prolific oil and gas region, and I am delighted to have secured Northcote’s entry into the country’s highly attractive gas and gas to power markets through the acquisition of a 3.75% WI in TOE. The presence of gas at TOE is proven and considering the solid infrastructure in the region, we believe this Concession represents an excellent opportunity to generate value for Northcote’s shareholders. Andalas is planning to drill a new well in the near term, and subject to the results, this could signal the start of an exciting development campaign. Combined with our plans to drill two back to back wells at the producing Shoats Creek field in Louisiana and with the construction of our waste remediation facility in Mexico fully funded and underway, the next few months will not be short of high impact newsflow.”
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For further information visit www.northcoteenergy.com or contact the following:
| Randy Connally | Northcote Energy Ltd | +1 214 550 5082 |
| Ross Warner | Northcote Energy Ltd | +44 7760 487 769 |
| Roland Cornish | Beaumont Cornish Ltd | +44 20 7628 3396 |
| James Biddle | Beaumont Cornish Ltd | +44 20 7628 3396 |
| Elliot Hance | Beaufort Securities Ltd | +44 20 7382 8300 |
| Nick Bealer | Cornhill Capital Limited | +44 20 7710 9612 |
| Elisabeth Cowell | St Brides Partners Limited | +44 20 7236 1177 |
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.