17th Feb 2016 11:27
LONDON (Alliance News) - Northcote Energy Ltd said Wednesday it has shifted towards talks for a joint venture for its Oklahoma portfolio rather than an outright sale, as current market conditions would make such a sale challenging.
The company has been in talks with various parties who have expressed interest in the company's Oklahoma oil and gas portfolio, but Northcote said that due to the current oil price market, the challenging financing background and the presence of many distressed assets owned by large public shale companies, it recognises that "achieving an outright sale at reasonable values is challenging."
As a result it has shifted towards talks for a potential joint venture to bring in outside capital and expertise in the development of mature oil fields. It has appointed Jay Wettig as the vice-president of its Oklahoma operations to focus on "maximising value" from the portfolio. Wettig is currently undertaking an evaluation of the portfolio.
Shares in Northcote Energy were down 1.5% at 0.0665 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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