24 Sep 2014 13:10
Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas
24 September 2014
Northcote Energy Ltd ('Northcote' or 'the Company')
Mexico Update
Northcote (AIM: NCT) notes today's announcement by MX Oil (AIM: MXO) with whom it has entered into an Agreement conferring Northcote the right to participate in potential business activities, alongside MX Oil, in the upstream oil and gas sector in Mexico. The Mexican energy sector is being reopened to the private sector to attract greater foreign investment and expertise to develop its substantial hydrocarbon reserves. Further details on the terms of the agreement can be found in the announcement dated 1 August 2014.
MX Oil's full release:
MX Oil plc, the AIM quoted oil and gas investment Company focused on the re-opening Mexican energy sector, is pleased to announce the incorporation of its Mexican joint venture company ("JVCo") with established local oil services provider, Geo Estratos ('Geo'). This update is in line with the Company's strategy to participate in Mexico's energy industry that is being re-opened to the private sector to attract greater foreign investment and expertise to develop its substantial hydrocarbon reserves.
The JVCo, Geo Estratos MXOil Exploracion y Produccion, Sociedad Anonima Promotora de Inversion de Capital Variable, is 51% owned by MX Oil and 49% owned by Geo. Following the incorporation of JVCo and pursuant to the joint venture arrangement, MX Oil will invest US$1 million into JVCo to fund its share of the costs associated with an investment in the region. JVCo has been granted a general permit to operate as a fully incorporated entity in Mexico that will allow it to participate in the E&P bidding rounds scheduled to begin during the second week of November.
Subject to securing a Production Sharing Agreement ("PSA"), the JVCo will look to obtain an operating licence to develop E&P activities in Mexico. MX Oil, along with its partner Geo, continues to be in discussions with Pemex, the state-owned national oil company, with regard to making an application for a PSA in respect of three assets in Mexico as announced on 1 August 2014. A further announcement on this will be provided in due course.
MX Oil's Chief Executive Officer Stefan Olivier said, "We regard the incorporation of the Mexican entity to participate in the upcoming rounds as an endorsement of MX Oil's credibility as an early mover in the country's vast reopening energy sector. In our view this is testament to the quality of both the team we have put in place at MX Oil as well as that of our partner Geo, a leading local oil services company with a proven track record in the Mexican energy sector. With the JV Company now established, MX Oil is well placed to develop oil and gas assets in Mexico with company-making potential. Discussions with both the Mexican authorities and state-owned Pemex are on-going and further updates will be provided in due course, as we look to build on the excellent progress we have made in such a short period of time."
**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.