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

7 July 2015

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

Gaia Ecologica JV Update

Northcote (AIM: NCT) is pleased to announce a positive update in respect to activities undertaken through its Joint Venture in Mexico with Gaia Ecologica S.A. DE C.V ('Gaia Ecologica').

- Successfully secured a 22 acre property for the development of its first scalable environmental waste remediation facility ('the Facility') in the State of Tabasco, Mexico

o The Facility will recycle oil cuttings and provide other oil field services to both onshore and offshore wells

o Ideally located in an area where there is considerable activity being undertaken by Pemex, the state-owned oil and gas company and is closer to the port and major onshore oilfields than alternative facilities

o Supporting the higher levels of future drilling activity expected as a result of the reopening of the vast Mexican energy sector to foreign investment

o In line with the original JV framework, Northcote has advanced US$125,000 to Gaia Ecologica, pursuant to a promissory note and letter of intent to develop the Facility

o Permitting applications with the State of Tabasco to be submitted shortly

- Ceremony held, attended by senior state officials of the State of Tabasco, Mexico, to celebrate the securement of the site

- The Company anticipates updating the market as the development of the Facility progresses

Northcote Managing Director Randall J. Connally said, "This is the first exciting step towards building what we believe will become a substantial, revenue generative business focused on supporting the increased activity in Mexico's energy sector which is expected over the coming years. We are delighted to be aligned with Gaia Ecologica which brings 17 years of experience in the environmental remediation and drilling fluids businesses in Mexico to the table. We plan to deliver an integrated service which will ultimately provide oil cutting and waste water recycling, provision of oil based drilling mud and other services. The opportunity in Mexico is vast and as foreign investment increases, we are excited to be delivering on our strategy to develop services which will be critical to support increased drilling activity and further we are exploring the possibility of entering directly into the process of securing concessions directly, along with our partner Gaia. We look forward to providing updates on our progress in due course." 

Northcote Vice President - Mexico, Abraham Achar, said, "Having assessed a range of potential sites for this facility, we are confident that this location fits a number of our requirements and considering its prime location, is worth this small initial expenditure. The 22 acre property benefits from being located right at the heart of an area currently subject to considerable activity by PEMEX and is much closer to the port and major onshore oilfields than alternative facilities. This will substantially reduce operators' transportation costs in disposing of waste, thereby making our proposed services more attractive to potential customers. Furthermore, the process we will implement offers significant environmental benefits versus current disposal methods used in Mexico and is in line with the direction that Mexico is taking from a regulatory standpoint."

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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.