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Northcote Energy Limited  -  NCT   

Raises GBP1.75 million through Placing

Released 07:00 09-Oct-2013

Raises GBP1.75 million through Placing

Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector:  
                                   Oil & Gas                                   

9 October 2013

              Northcote Energy Ltd (`Northcote' or `the Company')              

                     Raises £1.75 million through Placing                      

Northcote (AIM: NCT), an onshore US oil and gas exploration and production
company, is pleased to announce that it has raised £1.75 million (before
expenses) through a placing arranged by Shore Capital Stockbrokers Limited of
159,090,910 new ordinary shares (`Ordinary Shares') of no par value in the
capital of the Company (`the Placing Shares') with new and existing
shareholders in the Company at a price of 1.1 pence per Placing Share (`the
Placing').

Details of the Placing

The Company is raising £1.75 million (before expenses) to advance its strategy
to increase its production and reserves in Oklahoma. Having already reached its
2013 production target of 100 BOEPD in July 2013, five months ahead of
schedule, the Company is targeting 250 BOEPD by 31 July 2014. In addition,
Northcote is focussed on increasing its net acreage position, which currently
stands at 2,895 net mineral acres to 5,000 by the year end.

The Company has a number of initiatives underway to achieve its mid-2014
production target of 250 BOEPD, including the fully funded Autumn 2013 frack
campaign and the drilling of a Missippian well at the Mathis project and part
of the placing proceeds will be used to advance Northcote's work programmes in
Oklahoma.

In addition the Company has been offered a number of attractive acquisition
opportunities in Oklahoma, many of which fit the Company's investment criteria
of being available at a fair valuation, whilst having significant ability to
add production and increase value. The Company is in discussions in relation to
some of these opportunities which may or may not lead to an acquisition being
made. The Company expects to deploy a portion of the net proceeds of the
Placing for such acquisitions should they be made.

The Board is confident that the successful implementation of these core
initiatives, alongside the results from on-going well completions across the
Company's portfolio, will enable the Company to meet its stated objectives.

The Placing Shares would represent approximately 13.83 per cent. of the
Company's currently issued share capital as enlarged by the Placing Shares. The
Placing Price is at a discount of approximately 12 per cent. to the closing
middle market price on 8 October 2013, being the last practicable date prior to
the publication of the announcement. The Placing is conditional, inter alia, on
admission of the Placing Shares to trading on AIM. It is expected that
admission of the Placing Shares to trading on AIM will be split into two
tranches with 90,909,091 Placing Shares expected to be admitted to trading at
8.00 a.m. on 10 October 2013 and the remaining 68,181,819 Placing Shares
expected to be admitted to trading at 8.00 a.m on 16 October 2013. The Placing
Shares will rank pari passu in all respects with the Company's existing
Ordinary Shares.

Share Capital

Following the issue of the Placing Shares as described above, the issued share
capital of the Company will consist of 1,150,503,626 Ordinary Shares. No shares
were held in treasury at the date of this announcement. The total current
voting rights in the Company is therefore 1,150,503,626.

The above figure (1,150,503,626 Ordinary Shares) is the figure which may be
used by shareholders at the denominator for the calculation by which they will
determine if they are required to notify their interest in, or a change to
their interest in, the Company.

Northcote's Chief Executive Officer Randy Connally said, "We are determined to
maintain the strong momentum we have established to date, which has already
seen us achieve our net production target of 100 BOEPD and more than double the
value of our proven reserves to US$76.7 million since January 2013, as we home
in on our 250 BOEPD target in the next nine months. Our overall objective is to
substantially grow our cash flows and ultimately, the value for shareholders
and we believe that this placing will allow us complete accretive acquisitions
as well as to accelerate other operational initiatives and we look forward to
updating the market at the appropriate time."

                                   **ENDS**                                    

For further information visit www.northcoteenergy.com or contact the following:

Randy Connally            Northcote Energy Ltd           +01 214 675 7579      
                                                                               
Ross Warner               Northcote Energy Ltd           +44 7760 487 769      
                                                                               
Dan Jorgensen             Northcote Energy Ltd           +44 20 7024 8391      
                                                                               
Roland Cornish            Beaumont Cornish Ltd           +44 (0) 20 7628 3396  
                                                                               
Jerry Keen                Shore Capital Stockbrokers     +44 (0) 20 7408 4090  
                          Limited                                              
                                                                               
Bidhi Bhoma               Shore Capital Stockbrokers     +44 (0) 20 7408 4090  
                          Limited                                              
                                                                               
Stefan Olivier            Cornhill Capital Limited       +44 (0) 20 7710 9618  
                                                                               
Hugo de Salis             St Brides Media and Finance    +44 (0) 20 7236 1177  
                          Ltd                                                  
                                                                               
Elisabeth Cowell          St Brides Media and Finance    +44 (0) 20 7236 1177  
                          Ltd                                                  

Notes:

Northcote Energy Ltd is a revenue generative US onshore oil and gas production
company focussed on the rapidly emerging Mississippi Lime formation in
Oklahoma. The Company participates with leading operators, including Midstates
Petroleum and Chesapeake Energy, in low risk development plays where advanced
techniques, such as horizontal drilling and fracing, are used to unlock known
oil accumulations and dramatically improve recovery rates. Management is
focused on increasing production through a multi-well drilling and fracking
campaign in 2013.

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