US-focused oil and gas company Northcote Energy Ltd plans to increase its net acreage to 5,000 acres by the end of 2013 and it is already halfway there.
The oil and gas assets are in the Mississippi Lime formation in Oklahoma. Based on its Horizon and De Agua projects the company’s reserves have a P1 PV10 valuation of $61.9m. More recently, Northcote has acquired a 100% working interest in the Matthis project, which is next to the 50.15% owned Horizon project, for $325,000.
Northcote will report drilling results in the next few months, as well as the progress of its pipeline project. Management hopes to exceed its 2013 production target of 100 barrels of oil equivalent per day net.
At 1.62p a share, Northcote is valued at £16.1m. Northcote raised £1m in a placing at 1p a share when it joined Aim in January. In May, Australia-based Cape Bouvard Equities invested £664,000 at 1.55p a share.
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