1st Sep 2014 08:40
LONDON (Alliance News) - Northcote Energy Ltd Monday said it has agreed a deal to buy a 37.5% working interest in the Alta Loma field in Galveston, Texas for USD150,000.
Northcote is buying the stake in the field, operated by Activa Resources AG, from Springer Oil & Gas LLC. The acquisition comprises a capital expenditure credit of USD50,000 and a further USD100,000 dependent on the successful drilling of a new well on the site before July 17, 2015m with initial production to be in excess of 300 barrels of oil equivalent per day.
Northcote expects operator Activa to propose a new drill at the site within 12 months in the Sunny Ernst Gas Unit #1-4. Northcote said Activa has estimated unrisked recoverable resources from this well may be more than 300,000 barrels of oil and 7.7 billion cubic feet of natural gas.
The Alta Loma field currently produces 30.7 barrels of oil equivalent per day gross, or 8.6 boepd net.
Northcote shares were untraded on Monday at 0.935 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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