Northcote has signed an agreement with NAPP to acquire the entire issued share capital of NAPP's wholly owned US subsidiary, NAP USA Inc.
• Acquisition significantly enhances Northcote's field level cash flow, lease acreage and net production, providing the enlarged Company with a robust platform for future production and cash flow growth even during times of oil price weakness:
◦ materially increases working interests ('WI') in core producing projects;
◾ a 100% increase in working interest from 35% to 70% at Shoats Creek
◾ a 55% increase in working interest from 55% to 85% at Zink Ranch
◦ Northcote has been high-grading its portfolio and has identified a number of low cost conventional drilling candidates with strong economics at current and lower oil prices, particularly at Shoats Creek
◦ The low-cost high impact Shoats Creek wells are expected to be the initial focus for the enlarged group
◦ pro-forma net production to 174 BOEPD (54.9% oil) as at 31 December 2014