AOGL.L Regulatory News (AOGL)

Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas 9 October 2013 Northcote Energy Ltd (`Northcote' or `the Company') Raises £1.75 million through Placing Northcote (AIM: NCT), an onshore US oil and gas exploration and productioncompany, is pleased to announce that it has raised £1.75 million (beforeexpenses) through a placing arranged by Shore Capital Stockbrokers Limited of159,090,910 new ordinary shares (`Ordinary Shares') of no par value in thecapital of the Company (`the Placing Shares') with new and existingshareholders in the Company at a price of 1.1 pence per Placing Share (`thePlacing'). Details of the Placing The Company is raising £1.75 million (before expenses) to advance its strategyto increase its production and reserves in Oklahoma. Having already reached its2013 production target of 100 BOEPD in July 2013, five months ahead ofschedule, the Company is targeting 250 BOEPD by 31 July 2014. In addition,Northcote is focussed on increasing its net acreage position, which currentlystands at 2,895 net mineral acres to 5,000 by the year end. The Company has a number of initiatives underway to achieve its mid-2014production target of 250 BOEPD, including the fully funded Autumn 2013 frackcampaign and the drilling of a Missippian well at the Mathis project and partof the placing proceeds will be used to advance Northcote's work programmes inOklahoma. In addition the Company has been offered a number of attractive acquisitionopportunities in Oklahoma, many of which fit the Company's investment criteriaof being available at a fair valuation, whilst having significant ability toadd production and increase value. The Company is in discussions in relation tosome of these opportunities which may or may not lead to an acquisition beingmade. The Company expects to deploy a portion of the net proceeds of thePlacing for such acquisitions should they be made. The Board is confident that the successful implementation of these coreinitiatives, alongside the results from on-going well completions across theCompany's portfolio, will enable the Company to meet its stated objectives. The Placing Shares would represent approximately 13.83 per cent. of theCompany's currently issued share capital as enlarged by the Placing Shares. ThePlacing Price is at a discount of approximately 12 per cent. to the closingmiddle market price on 8 October 2013, being the last practicable date prior tothe publication of the announcement. The Placing is conditional, inter alia, onadmission of the Placing Shares to trading on AIM. It is expected thatadmission of the Placing Shares to trading on AIM will be split into twotranches with 90,909,091 Placing Shares expected to be admitted to trading at8.00 a.m. on 10 October 2013 and the remaining 68,181,819 Placing Sharesexpected to be admitted to trading at 8.00 a.m on 16 October 2013. The PlacingShares will rank pari passu in all respects with the Company's existingOrdinary Shares. Share Capital Following the issue of the Placing Shares as described above, the issued sharecapital of the Company will consist of 1,150,503,626 Ordinary Shares. No shareswere held in treasury at the date of this announcement. The total currentvoting rights in the Company is therefore 1,150,503,626. The above figure (1,150,503,626 Ordinary Shares) is the figure which may beused by shareholders at the denominator for the calculation by which they willdetermine if they are required to notify their interest in, or a change totheir interest in, the Company. Northcote's Chief Executive Officer Randy Connally said, "We are determined tomaintain the strong momentum we have established to date, which has alreadyseen us achieve our net production target of 100 BOEPD and more than double thevalue of our proven reserves to US$76.7 million since January 2013, as we homein on our 250 BOEPD target in the next nine months. Our overall objective is tosubstantially grow our cash flows and ultimately, the value for shareholdersand we believe that this placing will allow us complete accretive acquisitionsas well as to accelerate other operational initiatives and we look forward toupdating the market at the appropriate time." **ENDS** For further information visit www.northcoteenergy.com 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 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 Stefan Olivier Cornhill Capital Limited +44 (0) 20 7710 9618 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.