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NORTHCOTE ENERGY LIMITED - Shoats Creek Update

PR Newswire

London, June 8

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

8 June 2016

 Northcote Energy Ltd

(‘Northcote’ or ‘the Company’)

Shoats Creek Update

Northcote Energy Limited is pleased to provide an update on progress regarding its 2016 work programme at the Shoats Creek Field in Beauregard Parish, Louisiana.

Re-entry and recompletion of the Lutcher Moore #19 (‘LM#19’)

Northcote has undertaken a re-entry and recompletion of the Lutcher Moore #19 (‘LM#19’) targeting production from the Frio formation. Originally drilled to 12,000 feet to test the Wilcox formation, the well logs indicate at least 10 feet of net pay in the Frio formation. The the well is on trend with Frio production at Shoats Creek and shows in surrounding wells suggesting low geologic risk to this project.

The decision to undertake this initiative was made due to the potential to add meaningful reserves and production at low cost. Initial results from this initiative are expected in the near term. A successful recompletion will potentially add several drilling locations to the inventory of viable Frio drilling locations at the Shoats Creek Field. Northcote will have a 20% working interest (‘WI’) and 14.4% net revenue interest (‘NRI’) in the well. The squeeze (cement job to isolate the Frio formation) is complete and the operator intends to perforate and swab the well this week. Updates as to the economic viability and sustainable production rates from the well will be forthcoming in due course.

The Lutcher Moore #21 (‘LM#21’)

Preparatory work to drill the Lutcher Moore #21 (‘LM#21’), in which Northcote will have 20.0% WI and 14.4% NRI, as an offset to the Lutcher Moore #8 (‘LM#8’) is progressing positively. An update as to timing of anticipated spud date will be provided in due course and a spud in the near term is a top priority for Northcote. The originally planned spud date of May 16, 2016 was delayed due to a variety of factors including weather, land, regulatory and coordination issues amongst vendors in the well. The LM#8, which was originally drilled to 9,136 feet in 1950 and completed in the Cockfield-5 formation, initially produced 185 barrels of oil and 185 mcf of natural gas with no water. The logs indicate Frio pay from 5029-5036 feet. The LM#21 will be located to the northwest of the LM#8 to position it structurally higher in the formation to potentially get updip and intersect a thicker payzone than the LM#8.

Other Operations

Additionally, the Lutcher Moore #8, #12, #16 and #17 wells have been plugged and abandoned. The Lutcher Moore #8 and #16 wells were abandoned either, in the case of the Lutcher Moore #16, as a requirement to obtain an allowable from the State of Louisiana Department of Natural Resources to be able to sell oil from the Lutcher Moore #20 well or, in the case of the Lutcher Moore #8 well, in anticipation of a similar requirement associated with the upcoming drilling of the Lutcher Moore #21 well. The Lutcher Moore #12 and #17 wells were abandoned opportunistically to take advantage of low costs for abandonment associated with the current down turn in oil prices and cheaper resulting costs for oil field services.

Northcote Managing Director Randall J Connally said, “The LM#19 recompletion is a low cost and low risk attempt to exploit the established Frio pay. We look forward to the results of this project and updating the market on timing of the new drill in due course as we execute on our 2016 work programme at Shoats Creek which is focused on driving production growth.”

**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 Andals Energy and Power Plc.

All of the technical information 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.