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Northcote Energy takes low-cost stake in Alta Loma Field

Published: 16:51 01 Sep 2014 AEST

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Northcote Energy (LON:NCT) is acquiring a 37.5% interest in the Alta Loma Field in Texas from Springer Oil & Gas.

The terms of the deal are US$100,000 payable on the successful drilling of well with initial production in excess of 300 barrels a day plus there’s also a US$50,000 capital expenditure credit.

Alta Loma, which covers 444 acres, currently produces 30.7 barrels of oil a day, from the Sunny Ernst 1-2 well.

Chief executive Randall Connally said: "As we build our production base on our core properties, adding high impact upside through the drill bit is a key part of creating the upside potential our shareholders expect.

“This acquisition gives Northcote such a prospect which offsets the Sunny Ernst 1-2 which has been a very profitable well with cumulative production to date of over 71,900 barrels of oil and 2.2bn cubic feet of natural gas."

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