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NORTHCOTE ENERGY LIMITED - Update on Mexico

PR Newswire

London, January 7

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

7 January 2016

Northcote Energy Ltd

(‘Northcote’ or ‘the Company’)

Update on Mexico

Northcote Energy Limited is pleased to note the announcement issued today by MX Oil (AIM: MXO) providing further details on the four Land Contract Areas (‘LCAs’) in Veracruz, Mexico it was awarded, alongside its local partner Geo Estratos, during the third phase of the Bid Round 1 Licensing Round for onshore conventional concessions in Mexico (see the respective announcements of both the Company and MX Oil dated 16 December 2015). All four LCAs, namely Tecolutla, Ponton, La Laja and Paso de Oro, are located in the prolific Tampico-Misantla Basin, which has to date produced around six billion barrels of oil and currently produces approximately 70,000 barrels of oil per day (‘bopd’).

Under the terms of the Participation Agreement dated 1 August 2014, Northcote has the right to participate as a partner at a level that is 20% of the interest retained by MX Oil in any concessions or other oil and gas production projects it enters into in Mexico for a period that terminates on 1 August 2024 (ten years from the date of the original agreement). Per the terms of the participation agreement MXO will formally notify Northcote that it has procured a bid and Northcote will then have 20 business days to elect to participate in the project.

Northcote continues to review the terms of the awards and information provided by MX Oil and will notify the market of its election 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 CEB Resources.