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 October 28, 2015 - 3:16 AM EDT
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Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas

28 October 2015

Northcote Energy Ltd (‘Northcote’ or ‘the Company’)

Shoats Creek Update

Northcote is pleased to note the announcement by Red Rock Resources plc (“RRR”) today that it has entered into an option agreement with Shoats Creek Development, Inc. ("SCDI"), Northcote’s partner at the Shoats Creek Field, Louisiana, to farm-in to certain planned development wells.  Subject to the exercise of the option RRR, alongside Northcote, will participate with a 20% working interest (‘WI’) and 14.4% net revenue interest (‘NRI’) in the drilling of two offset wells on the field targeting the Frio sands: the Lutcher Moore #21 and Lutcher Moore #22.  Drilling is planned for late 2015 and early 2016.

Pursuant to the terms agreed between RRR and SCDI, SCDI was to receive 3.75% working interest and 2.7% net revenue interest after payout of RRR's investment.  As consideration for Northcote’s assistance in arranging the farm-in, SCDI has agreed to assign Northcote 50.0% of the back-in after payout interest (“BIAPO”) it is to receive per the terms of the transaction.  Accordingly, based on the terms agreed between Northcote and SCDI, Northcote will receive an assignment of 1.875% working interest and 1.35% net revenue interest at such time.

Other than the addition of a share of the BIAPO, the transaction does not impact Northcote's interest in Shoats Creek which remains as follows:

  • Frio formation - 70% working interest
  • Lutcher Moore #20 Well – 93% working interest
  • Cockfield formation- 70% working interest
  • Wilcox formation- 50% working interest

Northcote is also pleased to announce that it has received permission from the Louisiana Department of Natural Resources to commence oil sales from the Lutcher Moore #20 well at Shoats Creek Field and with this permit in hand the Company has now commenced making sales.

Northcote Managing Director Randall J. Connally said, "We are pleased to have permission to sell oil from the LM#20 and also to have Red Rock Resources as a partner in the development of the next several Frio wells at the Shoats Creek Field.  The high impact low cost potential of the Frio formation at Shoats Creek was clearly demonstrated by the expectation - beating 340 boepd (gross) test results reported for our recently drilled and 93% working interest Lutcher Moore #20 well.  Having a solid partner led by a capable management team will facilitate continuation of the development programme at Shoats Creek to the mutual benefit of our shareholders."

* * ENDS * *

For further information visit or contact the following:

Randy Connally Northcote Energy Ltd +1 214 550 5082
Ross Warner Northcote Energy Ltd +44 7760 487 769
Dan Jorgensen Northcote Energy Ltd +44 20 7236 1177
Roland Cornish Beaumont Cornish Ltd +44 20 7628 3396
James Biddle Beaumont Cornish Ltd +44 20 7628 3396
Elliot Hance Beaufort Securities Ltd +44 20 7382 8300
Nick Bealer Cornhill Capital Limited +44 20 7710 9612
Elisabeth Cowell St Brides Partners Limited +44 20 7236 1177


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.

Source: PR Newswire (October 28, 2015 - 3:16 AM EDT)

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