Northcote has agreed a farm-out of a 30% working interest and 23.4% net revenue interest with North American Petroleum plc (NAP) at its Zink Ranch project and also provides an initial update on its recently commenced 2014 work program.
◾ Northcote has entered into a farm-out agreement pursuant to which NAP may earn an interest in workovers of existing wells and the drilling of subsequent wells targeting various Pennsylvanian objectives at the Zink Ranch project. Terms of the farm-out include:
◾ NAP will earn an interest in only those wells at Zink Ranch in which it participates under the farm-out agreement;
◾ To earn the interest, NAP must fund $600,000 of Northcote's development costs at Zink Ranch as follows:
◾ Initial funding of $300,000;
◾ A further $300,000 as the work program continues;