AOGL.L Regulatory News (AOGL)

NORTHCOTE ENERGY LIMITED - Notes Andalas Energy & Power Update

PR Newswire

London, March 8

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

08 March 2016

Northcote Energy Ltd

(‘Northcote’ or ‘the Company’)

Notes Andalas Energy & Power Update

Northcote notes the announcement today from Andalas Energy and Power Plc (‘Andalas’) regarding its conditional farm-in agreement to acquire a 30% working interest for the Tuba Obi East (‘TOE’) Technical Assistance Contract (‘TAC’) (‘the Concession’) which is located in the South Sumatran basin approximately 30km north-west of Jambi city in Jambi province, Sumatra (the “Farm-In”). Andalas believes that 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 energy generation exists. The Farm-In constitutes a reverse takeover pursuant to the Aim Rules and, accordingly, the farm-in agreement is subject to the approval of Andalas’ shareholders in general meeting.

Pursuant to the terms of its participation right, Northcote has the right to participate in any project alongside Andalas at a level that is equal to 12.5% of Andalas’ participation, or 3.75% net interest in TOE if Northcote were to elect to participate, until 30 April 2020. Northcote will have 20 business days (from the date that Northcote receives written notification from Andalas that it intends to proceed with its investment) to notify it of its intention to participate in the concession. Northcote is yet to receive this written notification. Should Northcote elect to participate in the Farm-In it would be expected to fund its proportional share of the farm-in costs, estimated at a total gross amount of US$1,575,000 constituting US$1,075,000 in respect of the work programme and a further US$500,000 if the concession is renewed beyond its expiry date of 15 May 2017 as well as reimburse Andalas for its share of the direct third part costs incurred in connection with this investment decision.

Northcote Managing Director Randall J. Connally said, "We are very excited about the progress Andalas is making in Indonesia and its focus on natural gas projects which given the strong domestic market provide excellent potential for revenue diversification. Pursuant to our agreement with Andalas, Northcote will have twenty business days from the date we are notified of details regarding the project to make a decision as to our participation. Therefore we will notify the market in due course."

**ENDS**

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 as well as Indonesia via a strategic relationship with Andalas Energy and Power Plc.