🕐17.06.13 - 13:54 Uhr

MEETING WITH REVENUE GENERATING ONSHORE US OIL & GAS COMPANY NORTHCOTE ENERG
Y? VALUE DELIVERED WITH FURTHER MILESTONES EXPECTED IN THE SHORT TERM



Good Afternoon Randy Connally and Kevin Green from Northcote Energy (MD and Technical Director) will be in London this week to discuss their latest venture, AIM listed Northcote Energy (AIM: NCT), a revenue generating oil and gas company focussed on proven US onshore formations in Oklahoma. We are organising meetings this week on Wednesday 19 and Thursday 20 June with the management to discuss the Company, its strategy to significantly lift production and reserves further through the implementation of a range of operational and corporate initiatives, and the hive of activity in the US oil and gas sector which has seen majors move into the arena and production soar in the US over recent years. Since listing just six months ago, the Company has experienced a huge boost to its production and reserves.

On reporting its final results in April, the increases stood at:
� 500% increase in its net acreage position � 83% increase in P1 PV10 to US$61.94 million since listing vs its market cap of �16m (this only includes reserves from 2 of its 5 projects) � 78% increase in net proven oil reserves to 1,181 Mbbl � 85% increase in net proven gas reserves to 3,107 MMcf � 75% increase in average production from 27.7 boepd at admission to 48.7 boepd This has seen the Companys share price increase 65% since listing.

However, its growth potential does not stop here and these numbers have been further enhanced since this was reported.

Additionally, with results from its initial two frack campaigns at the Horizon Project and its workover at the OKE Project due to be announced in the short term, the Company expects to hit its 100boepd 2013 12 month target significantly ahead of time.

Acquisition is also high on the agenda and due to the managements involvement in Eagle Energy, the first company focussed on the Mississippi Lime to be acquired last year for c.

�600m by MidStates, both Randy and Kevin have a strong competitive advantage and network to facilitate this. Further information on the region as a whole and the Company below, but if you would like to organise a meeting with the management, or are looking to cover the highly topical and rapidly developing US onshore oil and gas sector, do let me know and Ill arrange a time. Best Lizzie Northcote Energy Ltd is a revenue-generating oil and gas company focused on proven US onshore formations in Oklahoma with a balanced portfolio of exploitation opportunities and existing producing wells that are primed for high impact development.

Northcote Energy is on course to deliver significant growth over the coming year.

Already since listing in January 2013, the Company has hit the ground running, successfully implementing key operational and corporate initiatives which have already substantially lifted production.

With this in mind, the Company is on track to exceed its 12 month 2013 target of 100boepd net to the Company in the near term.

With the roll-out of its stated strategy well underway, plenty of news flow can be expected as the Company homes in on this milestone. Northcote targets low risk development plays where advanced techniques such as horizontal drilling and fracking can be used to significantly improve recovery rates and unlock known oil accumulations.

With this in mind, the Mississippi Lime formation, a proven and producing hydrocarbon basin, provides an ideal environment for strong growth in a politically supportive jurisdiction.

In recent years, new technologies and techniques have reopened the historic oil play where US majors such as Chesapeake Energy, Devon Energy Corp and SandRidge Energy have successfully built a strong presence in the region.

The oil rich play is underpinned by highly attractive economics making it ideal for small high growth companies such as Northcote Energy to rapidly expand: at between US$2.5million and US$4.0million, drilling costs are relatively low; the Mississippi Lime has one of the lowest breakeven oil prices among onshore US formations; and finally Oklahoma has excellent access to infrastructure including the Cushing refinery. Northcotes portfolio consists of a balanced mix of producing assets and drilling leases related to three projects in Osage and Woods Counties in Oklahoma.

Having recently exercised options to increase its interests in the Horizon Project in Osage County, the Company has a 50.15% working interest (41% Net Revenue interest (NRI)) in 10 producing leases in this project.

Since listing, the Companys net production has increased from 28 boepd to approximately 48.7 boepd (the most recent published production figure for the Company) net proven reserves (1P) in the Horizon Project have increased to 1,181 Mbbl oil and condensate and 3,107 MMcf natural gas and Moyes & Co has increased the Companys P1 PV10 by 83% to US$61.94 million, which compares favourably to the Companys market cap of approximately US$15.5million. A workover programme is underway at the Horizon project which has already yielded excellent results with the first workover of the Little Drum well more than doubling the production rate.

Additionally the Company has completed the first two of its 4-6 well 2013 frac programme.

This is expected to significantly enhance production and initial frac results from the Big Hill #1 well have been highly positive demonstrating the potential to increase flow rates by 1,200% versus pre-frac levels.

Further results on both these programmes will be available over the coming weeks.

Northcote also intends to drill two new wells at the Horizon Project by the end of 2013. In March, the Company acquired a 100% WI in the OKE Project in Osage County which conferred it operator status in the county.

The project area currently produces an average of 12 boepd gross from the shallow Bartlesville formation.

An ongoing workover programme is expected to successfully increase gross production to 50 boepd by year end.

Importantly the area has strong Mississippian potential which has been underpinned by Encana Corporation and Chaparral Energys recent successes to the north and the south of the OKE Project.

Northcote Energy plans to undertake a 3D seismic programme in 2013 to assess future drilling targets in the Mississippi Lime. Osage County has excellent consolidation opportunities and Northcote intends to significantly increase its exposure to the Mississippi Lime through the acquisition of and participation in new projects in the region.

In line with this it recently acquired a 3.125% working interest in the Companys third project called the Bird Creek Project in Osage County where the Company has elected to participate in two wells, the Bray #1 and the Keese #1.

Results are expected in H1 2013. Additionally, the Company has a small working interest in Woods County, Oklahoma alongside leading operators Chesapeake Energy and MidSates Petroleum.

Woods County currently consists of two drilled wells and there are plans in place to drill a further 12 new wells over the course of 2013. The management team directing this strategy is highly experienced and has a proven track record in accreting value for shareholders.

The MD, Randall Connally and Technical Director, Kevin Green were previously strategic advisors and shareholders of Eagle Energy Company which had operations in the Hunton and Mississippi Chat plays in Oklahoma.

Eagle was sold to Midstates Petroleum Company in Oct 2012 for US$650 million. In summary Northcote Energy is primed for significant growth over the coming year and beyond as it focusses on consolidating its position in the Mississippi play to become a substantial US oil producer.

Its blend of producing assets and high impact work programmes, together with the management teams competitive advantage and experience will facilitate its aggressive acquisition strategy and provide a solid basis for value accretion in the near term.
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