Update on Mexico Bid Round

Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas

16 December 2015

Northcote Energy Ltd ('Northcote' or 'the Company')

Mexican Onshore Bid Round

Northcote, the AIM listed energy company, is pleased to note the announcement by MX Oil plc that it has been successful in winning four concessions in Veracruz, Mexico, namely Tecolutla, Ponton, La Laja and Paso de Oro. 

Per the terms of the Participation Agreement dated 1 August 2014 Northcote has the right to participate as a partner at a level that is 20% of the interest retained by MX Oil in any concessions or other oil and gas production projects it enters into in Mexico for a period that terminates on 1 August 2024 (ten years from the date of the original agreement). 

Per the terms of the participation agreement MXO will formally notify Northcote that it has procured a bid and Northcote will then have 20 business day to elect to participate in the project. Northcote will be reviewing the terms of the awards and information provided by MX Oil and will notify the market of its election in due course.

Should Northcote elect to participate it will then become responsible for a proportionate share of the costs associated with the development of such project on the same terms as MX Oil.

Additionally, Northcote is the holder of a total of 38,793,103 warrants in MX Oil that had a vesting provision based on MX Oil successfully obtaining an oil & gas project in Mexico. 30,000,000 warrants are struck at a 2p exercise price and a further 8,793,103 warrants at a 3p exercise price that have an additional price based vesting provision as follows:

· 2,931,034 warrants when the 60 day average MXO share price exceeds 6p;

· 2,931,034 warrants when the 60 day average MXO share price exceeds 12p;

· 2,931,034 warrants when the 60 day average MXO share price exceeds 18p.

Northcote Managing Director Randall J. Connally said "We are elated by the successful outcome for MX Oil in the bid round. MX Oil, its Board and team, supported by their investors have put in an extraordinary amount of hard work, time and effort to realise this achievement. We whole heartedly congratulate them and look forward to further evaluating the assets.

"MX Oil was our first foray into Mexico, followed by the Mayan Drilling Fluids plant. Our long term commitment to Mexico remains as strong today as it ever has been. While short term the immediate cash flow from the ongoing work at Shoats Creek is a powerful driver for our company, this development crystalizes value for us with respect to our efforts in Mexico."

**ENDS**

For further information visit www.northcoteenergy.com or contact the following:

Notes:

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.