Northcote has substantially improved its balance sheet through two transactions with Shoats Creek Development, Inc. ('SCDI'), its partner in the development of the Shoats Creek Field, Beauregard Parish, Louisiana. The total reduction in company liabilities resulting from the above transactions is US$535,800.00.

In the first transaction, Northcote has agreed to assign a 23.0% working interest ('WI') and 16.56% net revenue interest ('NRI') in the Lutcher Moore #20 ('LM20') well to SCDI in exchange for (a) the termination of US$220,800 in debts and trade accounts payable; (b) a retained over-riding royalty interest ('ORRI') of 0.7912% in LM20; and (c) a back in after payout ('BIAPO') of approximately 4.3125% working interest and 3.105% NRI in LM20.

Tags: Northcote Energy