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14 January 2013 Proforma Schedule 1 Pre-Admission Announcement
News

Placing, update on Mexico Activities, US Update

NORTHCOTE ENERGY LIMITED - Placing, update on Mexico Activities, US Update

PR Newswire

 Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector:
                                   Oil & Gas
              Northcote Energy Ltd (`Northcote' or `the Company')
       Placing, update on activities in Mexico and US operations Update
Northcote (AIM: NCT) is pleased to announce that it has raised £2.80million via
the issue of 1,244,444,444 new nil par value ordinary shares ("Placing Shares")
at 0.225 pence ("Placing Price") to new and existing investors (the "Placing").
The proceeds of the Placing will be used primarily to pursue investment
opportunities in the Mexican energy sector and for general working capital.
Overview
  * Placing to expedite participation in the extensive opportunities in the
    Mexican energy sector which is being opened up to international companies
  * Multiple projects currently being evaluated in Mexico both within the
    Company's joint venture with Gaia Ecologica ("Gaia"), a local Mexican
    company, as well as through its own contacts
  * Whilst nothing formal has been agreed at this stage, due diligence is
    underway on an opportunity to participate in a JV to construct and operate
    a waste remedial plant in a prime onshore oil and gas basin in Mexico -
    this could offer a low cost opportunity to generate cash flows in the near
    term and has potential for expansion in line with expected increase in
    drilling activity
  * Advanced discussions with US-based companies with experience in midstream
    and downstream oil and gas services with a view to partnering in their
    expansion into Mexico
  * 70% owned Shoats Creek well expected to spud within the next 10 days
    following receipt of drilling permit
Northcote Managing Director Randall Connally said, "We would like to thank our
existing and new shareholders for their show of support in this fundraise. The
financial firepower we now have gives us the flexibility to takedown new
business opportunities in Mexico. In addition to generating near term recurring
revenues and solid cash flows for Northcote these steps will solidify our
position as a strong partner for Mexican and international companies in
opportunities emerging through the energy reform in Mexico and will, we
believe, lead to opportunities across the sector, including participation in
lucrative oil & gas concessions as well as other major projects in the future.
"At the same time we are pleased to have been notified by the operator of
Shoats Creek that we have received a new permit for the first new drill well on
that property. Preparations for the drill are underway and we expect to execute
our drilling plan very soon. A further update once we have spudded this well
will be provided in due course."
Details of the Placing
The Company has raised £2.80million (before expenses) in new equity to further
its pursuit of opportunities arising from the deregulation of the Mexico energy
sector.
The Placing Shares represent approximately 20.77 per cent. of the Company's
issued share capital as enlarged by the Placing Shares (the "Enlarged Share
Capital"). The Placing Price is at a discount of approximately 18.2 per cent.
to the closing middle market price on 1 May 2015, being the last practicable
date prior to the publication of the announcement. The Placing is conditional,
inter alia, on admission of the Placing Shares to trading on AIM ("Admission").
It is expected that admission of the Placing Shares to trading on AIM will be
admitted to trading at 8.00 a.m. on 11th May 2015. The Placing Shares will rank
pari passu in all respects with the Company's existing Ordinary Shares.
Following the issue of the placing shares as described above, the issued share
capital of the Company will consist of 5,992,582,327 Ordinary Shares.
In connection with the Placing, the Company has issued 90,750,000 warrants to
its brokers to subscribe for new shares in the Company exercisable during three
years from Admission, at a price of 0.225p per share.
Gaia Opportunity
Further to the Company's announcement of its joint venture with Gaia on 30
March 2015, the Company and its joint venture partners have been reviewing
potential investments.
The most advanced opportunity is to participate in a JV focused on the
construction of a plant to remediate rock, water and other waste generated in
the drilling and workover of oil wells ("the facility"). The plant will be
strategically located in one of the primary onshore oil and gas basins in
Mexico with easy access to port facilities to allow for treatment of waste
associated with both onshore and offshore drilling. The joint venture partners
are performing due diligence on this opportunity, it is expected that the plant
could be commissioned within six months of construction commencing and is
expected to be a significant driver of positive cash flows should it become
fully operational.
Once the first facility is in production, the joint venture partners expect to
be able to use their existing relationships with major international and local
service companies to ensure that it can tender for new contract awards arising
from the expected increase in drilling activity in the area. The plant has a
modular design, which would facilitate expansion alongside the expected growth
with drilling activity.
Having closed the Placing, Northcote is now well positioned to complete its due
diligence on this opportunity and, should this proceed to a formal investment
agreement, the Company will update the market at this stage.
Other Initiatives
The remainder of the placing proceeds will support Northcote's joint venture
with Gaia and also its initiative of identifying US-based companies with
experience in midstream and downstream oil and gas services with a view to
partnering with them in their expansion into Mexico. The Company is in advanced
discussions with certain companies and, subject to the satisfactory completion
of price negotiations and due diligence, the Company will advise the market
should any of these investments be agreed.
Shoats Creek
The Company has now received the permit from the State of Louisiana department
of Natural Resources to drill its first new well on its 70% owned Shoats Creek
project. With the permit in hand, the Company is working with the drilling
contractor to mobilise the rig to site and expects that the well will spud
within the next 10 days at which point further updates will be provided.
                                 * * 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
Dan Jorgensen             Northcote Energy Ltd           +44 20 7024 8391
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, such as its participation agreement
with MX Oil PLC and agreement with Gaia Ecologica.