Northcote has exercised two of its options, as described in the Company's AIM Admission Document, to acquire an additional 10 per cent. working interest (the 'Horizon Option') and an average 2.2 per cent. royalty interest (the 'WCR Royalty Option') in the Horizon Project in Osage County, Oklahoma (the'Project') which includes nine producing wells in the proven Mississippi Lime Formation.

Northcote's Chief Executive Officer Randy Connally said, "We are delighted to have exercised these options to increase our interests in the Horizon Project which will have an immediate positive impact on our net reserves and production and is in line with our stated strategy. Importantly it will enable Northcote to increase its exposure to the development programme currently underway across Horizon's portfolio which has already resulted in a doubling of daily production in one well, and is targeting a substantial jump in net production and revenues. This is an important step towards meeting our end of year production target.

Tags: Northcote Energy