Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas 4 October 2013 Northcote Energy Ltd (Northcote Energy or the Company) Intention to drill first Horizontal well targeting the Mississippi Lime formation Northcote Energy (AIM: NCT), an onshore US oil and gas exploration and production company, is pleased to announce plans to drill its first horizontal well targeting the Mississippi Lime formation on its 100% owned Mathis lease prior to end of December 2013.

In addition as part of the well planning process, the first two undeveloped locations on Mathis have been designated P1 PV-10% reserves of US$14.8million, which combined with the previously announced reserves brings the value of the Northcotes P1 reserves to US$76.7 million. Highlights
* New horizontal well, targeting the Mississippian, anticipated to spud prior to the end of December 2013 * First well location designated proved undeveloped (P1) status by Moyes & Co with: * 200,000 barrels of oil, 1.7Bcf of natural gas and a PV-10% of US$9.7million * Total Mathis lease assigned P1 reserves of 328,000 barrels of oil and 2.79Bcf of natural gas and a PV-10% of US$14.8 million * Mathis lease acquired for US$325,000 - Reserves assigned by Moyes & Co validate strategy to acquire and develop leases in Oklahoma and grow net production and reserves through drilling * Advanced discussions to sell at least a 50% working interest in the well as part of our strategy for balancing upside with the management of financial risk * Total value of P1 reserves (PV10%) assigned by Moyes across Northcotes portfolio of 2,895 net mineral acres now stands at US$76.7million compared to its current market capitalisation of �12.24 million Northcote Energy Managing Director Randall Connally said "As the first horizontal well drilled by Northcote since listing this is a very exciting next step in the evolution of our company and we are excited about the prospects for completing this well during our first 12 months on AIM.

This has the potential to be a high impact well for us and on a net basis to significantly contribute to meeting our newly established 250 BOE/d production target by mid-2014.

In the meantime the Mathis Oil & Gas reserves, estimated by Moyes, represent on a gross basis a 24% increase in our P1 PV10 to US$76.7m, further strengthening the asset backing behind our current market valuation of �12.24 million."
Further Information Northcote holds a 100% interest in the Mathis project which was acquired in May 2013 for US$325,000 and covers 960 acres contiguous to the Companys 51% owned Horizon Project in the producing Mississippi Lime formation in Osage County, Oklahoma.

Managements rationale for the acquisition of Mathis, as announced in May 2013, was that for a relatively small investment it provided shareholders with exposure to significant value upside potential through the development and workovers of existing wellbores alongside at least two horizontal drilling locations. As part of the Companys diligence in preparing for this well, the project has now been evaluated by Moyes & Co and we are delighted that they have validated our assessment of the Mathis projects potential.

The first location has been designated as a proved undeveloped location (P1) with 200,000 barrels of oil and 1.7Bcf of natural gas and a PV-10% of US$9.7 million, net of expected drilling and completion costs. In addition to this first horizontal well, Northcote has been given a second proven undeveloped location with the combined proven undeveloped reserves for both locations totalling 328,000 barrels of oil and 2.79Bcf of natural gas and a PV-10% of US$14.8 million, net of expected drilling and completion costs.

This represents a 28% increase in total oil reserves and 90% increase in total natural gas reserves. The surface location for the first well will be located near the Companys existing producing Steele and Steinberger wells to the west of the Horizon project, Osage County, Oklahoma.

The two horizontal locations identified were each selected based on the same 3-D seismic used to identify the Steele and Steinberger well locations. Northcote intends to drill the well using an existing vertical well pad site to drill a new well to test the Mississippi lime formation at an approximate true vertical depth of 3,000 with a contemplated 3,500 cased horizontal extension to target unexploited reservoir identified on existing 3-D seismic.

A multi-stage fracture stimulation will be undertaken as part of the completion of the well.

By utilizing an existing pad site, Northcote will save time and capital in drilling the well as it eliminates the need to prepare a new location, does not require additional permitting and eliminates the need for an archaeological survey on a new well site. The estimated completed well cost is US$3.25 million on a 100% working interest basis.

As part of our strategy for managing our portfolio and balancing retention of upside with management of financial risk, Northcote intends to sell at least 50% working interest in the well while retaining between 30% and 50% working interest as well as operational control of the project. The Company is presently in advanced discussions with a number of industry and private investors regarding farming into the 50% working interest being offered in the well.

Subject to completion of the farm-in, the anticipated spud date for the well is prior to the end of December 2013. 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 Companys 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. TECHNICAL GLOSSARY 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 liters) 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 Mbbl means thousand barrels Mcf means thousand cubic feet Mmcf means million cubic feet 1P means Proved Reserves 2P means Proved plus Probable Reserves 3P means Proved plus Probable plus Possible Reserves P2 means Probable Reserves P3 means Possible Reserves PV10means net present value using an annual discount on cashflow of 10% per annum. WI means Working Interest, a percentage of ownership in an oil and gas lease granting its owner the right to explore, drill and produce oil and gas from a tract of property.

Working interest owners are obligated to pay a corresponding percentage of the cost of leasing, drilling, producing and operating a well or unit.

After royalties are paid, the working interest also entitles its owner to share in production revenues with other working interest owners, based on the percentage of working interest owned **ENDS** For further information visit www.northcoteenergy.com or contact the following: 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 (0) 20 7628 3396 Jerry Keen Shore Capital Stockbrokers Limited +44 (0) 20 7408 4090 Bidhi Bhoma Shore Capital Stockbrokers Limited +44 (0) 20 7408 4090 Hugo de Salis St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Elisabeth Cowell St Brides Media and Finance Ltd +44 (0) 20 7236 1177
Notes: 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 fracking campaign in 2013.
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