NORTHCOTE ENERGY LIMITED: Acquisition & Farm Out of Producing Unit, Oklahoma

NORTHCOTE ENERGY LIMITED: Acquisition & Farm Out of Producing Unit, Oklahoma
Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector:
Oil & Gas 
6 December 2013 
          Northcote Energy Ltd (`Northcote' or `the Company')               
 Low Cost Acquisition & Farm-Out of the Producing East Blackwell Skinner Sand   

                                Unit, Oklahoma                                 

Northcote (AIM: NCT), an onshore US oil and gas exploration and production
company, is pleased to announce that it has acquired a 100% Working Interest
(`WI') in the East Blackwell Unit (`East Blackwell') in Kay County, Oklahoma.
Concurrently, the Company has agreed terms for the farm-out of a 20% interest
in East Blackwell, in line with its strategy to significantly increase future
production and reserves while at all times actively managing development costs
and risk.

  * Northcote's net US oil and gas acreage is now over 6,058 including 4,496
    net acres in Oklahoma and over 1,562 in Texas a 1300% increase from 462 net
    acres at IPO
      * Acquired 100% working interest (75% Net Revenue Interest) in 520 gross
    acres for total cash consideration of US$120,000 - includes five new
    drilling locations
      * Agreed farm-out terms where a third party will earn a 20% WI (15% NRI) in
    East Blackwell for a total consideration of US$75,000 - effectively funding
    Northcote's initial share of first phase development costs
      * Acreage held by production giving discretion as to when work is performed
      * East Blackwell's strength exists in its future development upside:
      + Near term - field initiatives to improve production and operating
      + Mid term - new well targeting the lower skinner sands
      + Longer term - Enhanced Oil Recovery campaigns on existing and new wells

Northcote's Chief Executive Officer Randall Connally said "The East Blackwell
Skinner Sand Unit acquisition is an extension of our activities in and around
Osage County, Oklahoma and will be added to the portfolio of properties
operated by Northcote. The speed and terms of the agreed farm-out, in our view,
provide third party confirmation of the potential of East Blackwell which is
held by production thereby allowing us to schedule development to best suit our
resources. The addition of up to five new drilling locations in a field that
has averaged about 39,000 barrels of oil per well from shallow wells that can
be drilled and completed for approximately US$500,000 each fits our objective
of adding low cost, oily upside for Northcote shareholders." 
East Blackwell 
Northcote Energy Limited is pleased to announce the acquisition of the East
Blackwell Skinner Sand Unit in Kay County, Oklahoma for US$120,000. After
Farm-out Northcote's interest in the East Blackwell Skinner Sand Unit includes
520 gross acres with an 80% WI (60% NRI) that are held by production from two
The East Blackwell Skinner Sand Unit has historically produced approximately
391,000 cumulative barrels from 10 productive wells to date. The field
currently produces a stable 3 barrels per day from 2 wells. 
Northcote intends to drill and complete up to five additional wells targeting
the upper and lower Skinner Sands and the unit has excellent longer term
potential as a waterflood. The funding of these future wells is at the
Company's discretion and any investment will be subject to partnering or the
availability of non-dilutive capital. The unit is held by production and,
therefore, the work programme is at Northcote's discretion. In the near term
Northcote will take steps to increase production rates from the two producing
wells and improve the efficiency of the water disposal system to support longer
term development drilling. Northcote will serve as operator of the unit and the
Company looks forward to providing shareholders with an update as work
commences at East Blackwell. 
Northcote has concurrently agreed the terms of a farm-out of a 20% WI and 15%
NRI in East Blackwell for a total consideration of US$75,000. This is comprised
of US$60,000 with regards to the lease acquisition and a further US$15,000
towards Northcote's share of costs associated with the first development phase,
which comprises field initiatives to improve production and operating
Competent Persons 
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. 
`BOPD' means barrels of oil per day 
`BOE' means barrels of oil equivalent: a unit of energy based on the
approximate energy released by burning one barrel (42 US gallons or 158.9873
litres) of crude oil. There are 42 gallons (approximately 159 litres) in one
barrel of oil, which will contain approximately 5.8 million British Thermal
Units (MBtus) or 1,700 kilowatt hours (kWh). The value is necessarily
approximate as various grades of oil have slightly different heating values.
BOE is used by oil and gas companies in their financial statements as a way of
combining oil and natural gas reserves and production into a single measure. 
`BOEPD' means barrels of oil equivalent per day 
`MCF' means thousand cubic feet 
For further information visit, see below or contact the
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 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   
Northcote Energy Ltd is a revenue generative US onshore oil and gas production
company focussed on the rapidly emerging Mississippi Lime formation in
Oklahoma. The Company participates with leading operators, including Midstates
Petroleum and Chesapeake Energy, in low risk development plays where advanced
techniques, such as horizontal drilling and fracing, are used to unlock known
oil accumulations and dramatically improve recovery rates. Management is
focused on increasing production through a multi-well drilling and fracing
campaign in 2013. 
-0- Dec/06/2013 07:00 GMT
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