AOGL.L Regulatory News (AOGL)

Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector:Oil & Gas 5 August 2013 Northcote Energy Ltd (`Northcote Energy' or `the Company') Frack Programme and Completion of Pipeline Project Northcote Energy (AIM: NCT), an onshore US oil and gas exploration andproduction company, is pleased to announce the completion of its pipelineproject and an update on its on-going fracture stimulation programme at itsflagship 51% owned Horizon project, located in Osage County, Oklahoma. * Mechanical issues at Big Hill #2 ("BH #2"), caused by excessive acid levels in the well bore following its fracture stimulation, have been addressed. Following the successful resolution of these issues the Big Hill #2 is back on test and results will be available in due course. Surface pressure readings of 250 psi compare favourably with the Big Hill #1 prior to its testing * Funds advanced to secure the frack of the next two wells - the next two fracks are fully funded and third frack is anticipated to commence in September 2013 with the fourth frack following shortly thereafter * Little Drum pipeline project completed to increase the salt water disposal capacity at the Little Drum Unit by utilising spare capacity at the Big Hill Unit, the highlights of this are as follows: * + Substantial increase in salt water disposal capacity by up to 150%, from maximum rate of 4,150 barrels of salt water disposed in 30 days prior to completion, allowing for a proportionate increase in oil and natural gas production levels from the Little Drum Unit + The pipeline can now support salt water disposal volumes of in excess of 10,000 barrels per day + The additional salt water disposal capacity at the Little Drum Unit has already made a positive contribution to production rates but will also support the fracture stimulation of these wells as Northcote will have ample capacity to handle the higher water volumes associated with expected post-frack production rates Northcote Energy Managing Director Randall Connally said, "Following thesuccessful frack results at the Big Hill #1 well it became apparent that we hadlive hydrochloric acid coming into the Big Hill #2 at levels that would haveruined submersible pumping units and tubing. We therefore began a process ofcirculating fresh water into the wellbore to dilute the acid to acceptablelevels. We have now re-initiated flow of this well and look forward toannouncing results to the market in due course. "While this process was underway we focused our efforts on completing theLittle Drum salt water disposal pipeline both to increase production ratesprior to stimulation of these wells, but also to support the increased watervolumes that will result from fracture stimulation of these wells as part ofour on-going work programme. With this in mind, we are also excited to havescheduled the first of the next two fracks at our Horizon project and willannounce further information once the details are finalised. The pipelineproject also had the benefit of increasing existing production and we expectthis investment will be paid for from the increased liquids production, whichis in line with our strategy to apply low cost high impact work programmes toincrease production and provide a platform for future growth." **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 fracing, 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.