Northcote acquires Oklahoma Energy

Northcote Energy expects to see an increase in revenues and oil production following the acquisition of Oklahoma Energy.

Northcote Energy expects to see an increase in revenues and oil production following the acquisition of Oklahoma Energy.

The US oil and gas company has purchased 100% of the outstanding membership interests of the group for a cash consideration of $50,000 and the issue of $250,000 new ordinary shares with a further $200,000 to be paid from production.

The acquisition will triple Northcote's net acreage in the Mississippian play in Osage County, Oklahoma.

Chief Executive Officer Randy Connally said he anticipates it to produce 80 barrels a day, producing $8,000 a day in revenue over the next year.

"I think over the next three to six months this acquisition will be seen as a real home run for our shareholders," he told Sharecast.

He said the company was ready to hit the ground running with production and believes it will start making money right away.

The firm also announced it has purchased a 50.15% interest in the Horizon project in Oklahoma.

The company's interest in the Horizon project will have a proven present value of $61.94m, up from $33.5m on admission to trading on AIM index in January.

Net oil and condensate reserves will come to 1,181 thousand barrels and net natural gas reserves at 3,107m cubic feet.

Northcote has raised £1.5m by way of an oversubscribed placing by shore capital of 100m new ordinary shares with existing and new investors at a price of 1.5p per share, a discount of about 4.75%.

RD

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