17th Feb 2016 11:05
NORTHCOTE ENERGY LIMITED - Update on Oklahoma Operations & Asset Sales ProcessNORTHCOTE ENERGY LIMITED - Update on Oklahoma Operations & Asset Sales Process
PR Newswire
London, February 17
Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas
17 February 2016
Northcote Energy Ltd
(‘Northcote’ or ‘the Company’)
Update on Oklahoma Operations & Asset Sales Process
Northcote Energy provides an update on its oil and gas portfolio in Oklahoma. This includes the non-core Horizon and OKE properties as well as the Zink Ranch project which remains of interest for future development (together the ‘Oklahoma Portfolio’). Daily production from the Oklahoma Portfolio averaged 16.4 barrels of oil and 135.4 mcf of natural gas or, on a 6 mcf per 1 barrel of equivalent (BOE) basis, 39 BOE/d in December 2015 net to Northcote (gross of 76 BOE/d equivalent).
Over recent months, the Company has been in discussions with various parties who have expressed interest in acquiring its Oklahoma Portfolio. Due to the current oil price market, the challenging financing backdrop for E&P companies, and the presence of many distressed assets owned by large public shale companies, the Board recognises that achieving an outright sale at reasonable values is challenging. Therefore the focus of the Company has shifted toward discussions regarding a joint venture to bring in outside capital and expertise in the development of mature oil fields. These discussions are continuing and the Company looks forward to updating the market in due course.
With this in mind, Northcote has appointed Jay Wettig as Vice President - Oklahoma Operations to focus on maximising value from the entire Oklahoma portfolio. Mr. Wettig has extensive experience in delivering operational and financial improvements in a number of industries including oil and gas, manufacturing, logistics and consumer related businesses. His focus will be on:
Cost cutting and restructuring of the Oklahoma operations to significantly improve the production and financial performance of the assets in the current price environment Continued exploration of exit opportunities for the non-core assets Evaluation of partnering opportunities and development plans at Zink RanchA thorough evaluation of the Oklahoma Portfolio, led by Mr. Wettig, is underway with recommendations to be provided to the Board later this month. As part of this evaluation specific attention is being focused on Zink Ranch to evaluate the potential of the property in a sustained US$50 oil price environment.
Northcote CEO, Randall J. Connally said, "We are excited about the addition of Mr. Wettig to our management team. He brings a lot of hands-on experience and energy to the task of maximising value from the Oklahoma portfolio whether that is through an eventual sale or continued development of certain of the assets. I look forward to reporting back to the market in due course after the Board has a chance to digest the evaluation Mr. Wettig is leading."
**ENDS**
For further information visit www.northcoteenergy.com or contact the following:
| Randy Connally | Northcote Energy Ltd | +1 214 550 5082 |
| Ross Warner | Northcote Energy Ltd | +44 7760 487 769 |
| Roland Cornish | Beaumont Cornish Ltd | +44 20 7628 3396 |
| James Biddle | Beaumont Cornish Ltd | +44 20 7628 3396 |
| Elliot Hance | Beaufort Securities Ltd | +44 20 7382 8300 |
| Nick Bealer | Cornhill Capital Limited | +44 20 7710 9612 |
| Elisabeth Cowell | St Brides Partners Limited | +44 20 7236 1177 |
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 Andalas Energy & Power Plc.
A summary of Northcote’s interests in the Oklahoma Portfolio is set out below:
| Horizon Leases Net Revenue and ORRI Interests | ||||||
| Northcote Oklahoma, LLC | NCT Min | NAP USA Inc. | ||||
| Crude Oil | WI NRI | ORRI | ORRI | WI NRI | ORRI | Total |
| Steele #2-11H | 38.15% | 0.78% | 2.23% | 19.06% | 1.72% | 61.94% |
| Steinberger 1H-10 | 38.15% | 0.78% | 2.23% | 19.06% | 1.72% | 61.94% |
| Mathis Other (Multiple) | 53.00% | na | 2.19% | 23.40% | na | 78.59% |
| MS1 (Little Drum 1H-16; Sarah Elizabeth 1H-17) | 42.50% | 0.68% | 2.23% | 16.85% | na | 62.26% |
| MS2 (West Little Drum 1H-16; Lauren Blaire 1-18H) | 39.23% | 0.77% | 2.10% | 16.59% | na | 58.70% |
| BH1 (Big Hill 1H-12) | 57.70% | 1.09% | 2.23% | na | na | 61.03% |
| Burkhart #3 | 24.44% | na | 1.85% | na | na | 26.28% |
| Northcote Oklahoma, LLC | NCT Min | NAP USA Inc. | ||||
| Natural Gas | WI NRI | ORRI | ORRI | WI NRI | ORRI | Total |
| Steele #2-11H | 34.65% | 0.78% | 2.23% | 19.06% | 1.72% | 58.43% |
| Steinberger 1H-10 | 38.15% | 0.78% | 2.23% | 19.06% | 1.72% | 61.94% |
| MS (MS1 & MS2) | 40.87% | 0.72% | 2.10% | 16.72% | na | 60.42% |
| BH (BH1, BH2 & BH4) | 57.70% | 1.09% | 2.23% | na | na | 61.03% |
| MS1 | 42.50% | 0.68% | na | 16.85% | na | 60.03% |
| MS2 | 39.23% | 0.77% | na | 16.59% | na | 56.60% |
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