Northcote announces that, the acquisition of NAP USA Inc. is now unconditional with all conditions precedent having been met. This follows the issue of 1,730,725,004 new nil par value ordinary shares at 0.09 pence, constituting 1,555,725,004 Placing Shares to raise £1,430,531 of new money through new and existing investors and 175,000,000 Placing Shares in settlement of £157,500 of a debt. In addition, the Company has agreed to issue 236,564,735 new Ordinary Shares at the Placing Price to certain Directors and consultants in settlement of amounts owed and owing to them.
•Acquisition 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:
◦Provides increased exposure to low cost core Shoats Creek field in Louisiana (70% working interest), the focus of the planned development programme in 2015, and additional interests in Oklahoma including the producing Zink Ranch project (85% working interest)
◦The enlarged group will be majority working interest owner or operator of its core projects and as a result will control the speed of development across the portfolio