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Northcote Energy Plc - De-risked Junior set for gains (NCT)
Jazz T - 14 Oct 2013 13:35
Northcote Energy Ltd is a US focused oil & gas company with a balanced portfolio of new exploration and exploitation opportunities blended with a stable of existing producing wells primed for high impact development. The primary focus is on Mississippi Lime formation in Oklahoma, where new technologies and techniques including horizontal drilling have re-opened the oil play and which has seen US majors such as Chesapeake Energy, Devon Energy Corp,and SandRidge Energy build a strong presence.
Latest News http://www.northcoteenergy.com/news.aspx
Latest Ceo Interview (14th Oct 2013 ) http://www.brrmedia.co.uk/event/117017?popup=true
Jazz T - 14 Oct 2013 13:37 - 2 of 21
News Today - Further Acquisition
Proactive Investors
By Giles Gwinnett October 14 2013, 11:33am
Northcote Energy (LON:NCT) has increased its production and reserves in Oklahoma through a US$1 million (£625,000) cash acquisition.
It has bought a 78% working interest and 54% net revenue interest in 1,520 acres in Osage county from Northam Oil.
The North Cleveland property produces through 15 wells with average gross daily production of around 20 barrels of oil per day (bopd) and 60mln cubic feet (MCF) of gas per day, generating net revenues to Northcote's interest of over US$30,000 per month and has the potential for more.
Northcote now holds 4,080 net acres in Osage county - significant progress towards its target of 5,000 acres by the end of 2013.
Randy Connally, Northcote's chief executive, said: "This acquisition, facilitated by our recent £1.75 million fundraising, fits perfectly with our strategy of acquiring productive acreage with extensive low cost/high impact development opportunities.
"The North Cleveland properties significantly elevate and consolidate our regional position, being located close to our OKE properties.
"They also have strong pay-back credentials based on existing production alone. We are very confident that we can substantially improve on this in the near term, as there are numerous opportunities to rapidly maximise our revenues through work-overs, new wells and hydraulic fracture stimulation campaigns.
"Importantly, in line with our model to target de-risked properties with significant growth potential, the quality of this acreage is underpinned by the drilling inventory that we have acquired and we are keen to commence our development programme at North Cleveland as soon as possible.
"This will be conducted alongside the drilling of a new well at our recently acquired Mathis property, our on-going fully funded, four well 2013 frack programme at Horizon, as well as continuing work-overs at OKE.
"With this in mind we are ideally placed to hit our target of 250 BOEPD by the end of 31 July 2013 and at the same time build on our proven reserves, which currently stand at 2.49 million BOE [barrels of oil equivalent]."
City broker Shore Capital said the deal represented significant progress towards Northcote’s land acquisition targets as well as the prospect of it achieving its production goals.
“Northcote continues to make excellent progress,” analyst Craig Howie said.
“The acquisition provides us with further confidence in the company’s ability to reach 250boepd by the end of July 2014 and we continue to see potential for material growth in both production and reserves.”
Northland Capital, meanwhile, believes the deal is good value and analyst Andrew McGeary says the production hosting acreage is low risk.
On Friday last week, Northcote confirmed the completion of the acquisition of producing leases at the South Weslaco Field, Hidalgo County in Texas from London listed Aminex (LON:AEX), which confirmed the sale on Monday in a brief statement.
Proactive Investors
By Giles Gwinnett October 14 2013, 11:33am
Northcote Energy (LON:NCT) has increased its production and reserves in Oklahoma through a US$1 million (£625,000) cash acquisition.
It has bought a 78% working interest and 54% net revenue interest in 1,520 acres in Osage county from Northam Oil.
The North Cleveland property produces through 15 wells with average gross daily production of around 20 barrels of oil per day (bopd) and 60mln cubic feet (MCF) of gas per day, generating net revenues to Northcote's interest of over US$30,000 per month and has the potential for more.
Northcote now holds 4,080 net acres in Osage county - significant progress towards its target of 5,000 acres by the end of 2013.
Randy Connally, Northcote's chief executive, said: "This acquisition, facilitated by our recent £1.75 million fundraising, fits perfectly with our strategy of acquiring productive acreage with extensive low cost/high impact development opportunities.
"The North Cleveland properties significantly elevate and consolidate our regional position, being located close to our OKE properties.
"They also have strong pay-back credentials based on existing production alone. We are very confident that we can substantially improve on this in the near term, as there are numerous opportunities to rapidly maximise our revenues through work-overs, new wells and hydraulic fracture stimulation campaigns.
"Importantly, in line with our model to target de-risked properties with significant growth potential, the quality of this acreage is underpinned by the drilling inventory that we have acquired and we are keen to commence our development programme at North Cleveland as soon as possible.
"This will be conducted alongside the drilling of a new well at our recently acquired Mathis property, our on-going fully funded, four well 2013 frack programme at Horizon, as well as continuing work-overs at OKE.
"With this in mind we are ideally placed to hit our target of 250 BOEPD by the end of 31 July 2013 and at the same time build on our proven reserves, which currently stand at 2.49 million BOE [barrels of oil equivalent]."
City broker Shore Capital said the deal represented significant progress towards Northcote’s land acquisition targets as well as the prospect of it achieving its production goals.
“Northcote continues to make excellent progress,” analyst Craig Howie said.
“The acquisition provides us with further confidence in the company’s ability to reach 250boepd by the end of July 2014 and we continue to see potential for material growth in both production and reserves.”
Northland Capital, meanwhile, believes the deal is good value and analyst Andrew McGeary says the production hosting acreage is low risk.
On Friday last week, Northcote confirmed the completion of the acquisition of producing leases at the South Weslaco Field, Hidalgo County in Texas from London listed Aminex (LON:AEX), which confirmed the sale on Monday in a brief statement.
Jazz T - 14 Oct 2013 14:53 - 3 of 21
Alex 36 - 14 Oct 2013 18:17 - 4 of 21
Hi Jazz,get set for a re-run of MAGP here,i got in there at 0.55p and sold at 3p :-)
Jazz T - 15 Oct 2013 10:08 - 5 of 21
Alex36
Hello to you,i have a strong hunch this will be a flyer too and after hearing what
the MD had to say yesterday in that interview i doubled up straight away.He said
this latest asset buy alone will be worth the current cap of the company in 12 - 24
months and looking at the price they paid for it was an absolute steal.Also anything
from that is additional to the forecast of 250 boepd before mid 2014 which are then
obviously some big numbers for them with the sizable working interests they have.
They have two FRAC,s in progress at the horizon project currently and we should
hear on them shortly.I am also very happy to get in here at just below the placing
price with all these goodies about to come :-)
PS - The MD also said yesterday that they have all their desired acquisitions now
and the program is funded for next 9 - 12 months.So they will just be increasing
production from here !
Hello to you,i have a strong hunch this will be a flyer too and after hearing what
the MD had to say yesterday in that interview i doubled up straight away.He said
this latest asset buy alone will be worth the current cap of the company in 12 - 24
months and looking at the price they paid for it was an absolute steal.Also anything
from that is additional to the forecast of 250 boepd before mid 2014 which are then
obviously some big numbers for them with the sizable working interests they have.
They have two FRAC,s in progress at the horizon project currently and we should
hear on them shortly.I am also very happy to get in here at just below the placing
price with all these goodies about to come :-)
PS - The MD also said yesterday that they have all their desired acquisitions now
and the program is funded for next 9 - 12 months.So they will just be increasing
production from here !
Alex 36 - 15 Oct 2013 22:20 - 6 of 21
Jazz,it is not often you see one of these oil juniors with such a solid platform to grow
from and such a steady lift in revenues,check the piece on proactive investors below
on what the MD says they will be making in terms of cash over the next few months.
September 6th 2013
Northcote Energy's incremental production growth should not be overlooked
By Jamie Ashcroft
In the small cap market, relative value is a very important concept that is often overlooked.
A key announcement early last month from Northcote Energy (LON:NCT), an emerging North America focused oil producer with a market value of just £15mln, was a classic example.
It revealed that its growing operation in Oklahoma’s Mississippi Lime play had hit a full year production target rate almost six months ahead of schedule.
But the news didn’t really move the needle for the shares as those following the company closely thought it ought to, apparently because the target was a ‘mere’ 100 barrels a day.
While the numbers are, on the surface, modest, the cash being generated, relative to the company’s size and versus comparable peers, is not.
Northcote’s work programme has, to date, consisted of projects that have added modest but incremental production, and as a result the firm has almost doubled production since the IPO, with the help of some acquisitions.
The continuation of a fracking programme and an accelerated drill programme should continue to generate significant growth well into 2014.
In the words of chief executive Randy Connally, Northcote is getting to the point where it is ‘printing money’ - implying cash flow break even could be achieved in the near future.
Northcote joined AIM in January with a value of just £8.6mln - way below the £33.8mln NAV ascribed to the firm’s reserves by independent consultant Moyes& Co.
From a standing start it has already shown investors that it can add real and tangible value.
The shares are up 50% from the 1p where it raised £1mln through January’s IPO; however, some sellers have in recent months taken a chunk off the price, which at one point reached as high as 2p.
“Personally I think the shares are too cheap,” Connally said.
“I feel pretty good [about the performance], the only thing that has disappointed me was that I really believed the market would be more excited about hitting that 100 barrel a day milestone than it was.
“But, it came in the summer. It came in the market’s slow period, and perhaps it was too well anticipated”
Connally is confident that eventually the market will start to give it more credit for what is being achieved, as well as recognising the value and potential of its reserves as it moves nearer to the next target which stands at 250 barrels a day.
Northcote has given itself until July to hit this new target, though the ongoing programme it has there has the potential to beat expectations again.
At 100 barrels a day Northcote is poised to generate approximately US$2 million per year, assuming current prices and a production mix of 50% oil and 50% natural gas.
But, this is set to improve significantly as the ongoing programme is focusing on oilier projects from here forward.
As such, by the time Northcote is hitting its 250 barrel a day target the overall weighting of oil will have increased to about 70%. At that point revenues could be in the order of US$6.5 million per year, Connally explains.
“To me the maths is really simple, but, it is only the sort of thing that a nerdy guy like me pays attention to.
“If I get to the point where we’re generating solid cash flow out of the ground and for every barrel I produce I can re-invest cash flow and get, for example, two barrels, I’m going to make a lot of money over time.
“Now, we want home runs as well, but as long as we consistently add more barrels with each dollar we generate from the ground we are eventually going to create an asset base worth a huge amount of money for our investors
“While we do plan on drilling some big wells, you do not have to. If I can consistently take one barrel, sell it, pay off the cost of production and use the excess to get two more barrels over time that compounding effect is going to be enormous.
“So that’s what we’re trying to do.”
“We are looking at accelerating our drill programmes, partly because we feel we are in good position to do so and would like to aggressively start developing our asset base, but partly because I think investors want to see more development action and that should help reinvigorate the stock.
“If part of the problem is investors just want to see more action then I’m thinking ‘we got the opportunity, let’s give them the action'.
“We believe, based on the work we have done on the Mathis and OKE properties since acquisition, we have the potential to add huge production and reserves from accelerating our drill programme.”
That said, Connally explains Northcote is not the kind of share that has big bang exploration potential and it is not interested in being a pure explorer.
Investors aren’t going to switch on their computer one day and find the share hundreds of percent higher on any single piece of news and Connally admits he wouldn’t have the stomach for such a high risk approach; because the inverse is also true – sometimes the shares of such companies can fall precipitously.
“We want to deliver solid sustainable returns, let’s say that ‘all’ we were able to achieve was say 20% per year consistently every year.
“If we can get into a consistent mode of adding around 20% per year for ten years we’re going to make people a hell of a lot of money. I think we will have years where we can increase a multiple, but steady growth works just fine for me.
“Looking at it like the tortoise and the hare, I’m afraid to say it, we may be the tortoise, but in the end the tortoise won.”
from and such a steady lift in revenues,check the piece on proactive investors below
on what the MD says they will be making in terms of cash over the next few months.
September 6th 2013
Northcote Energy's incremental production growth should not be overlooked
By Jamie Ashcroft
In the small cap market, relative value is a very important concept that is often overlooked.
A key announcement early last month from Northcote Energy (LON:NCT), an emerging North America focused oil producer with a market value of just £15mln, was a classic example.
It revealed that its growing operation in Oklahoma’s Mississippi Lime play had hit a full year production target rate almost six months ahead of schedule.
But the news didn’t really move the needle for the shares as those following the company closely thought it ought to, apparently because the target was a ‘mere’ 100 barrels a day.
While the numbers are, on the surface, modest, the cash being generated, relative to the company’s size and versus comparable peers, is not.
Northcote’s work programme has, to date, consisted of projects that have added modest but incremental production, and as a result the firm has almost doubled production since the IPO, with the help of some acquisitions.
The continuation of a fracking programme and an accelerated drill programme should continue to generate significant growth well into 2014.
In the words of chief executive Randy Connally, Northcote is getting to the point where it is ‘printing money’ - implying cash flow break even could be achieved in the near future.
Northcote joined AIM in January with a value of just £8.6mln - way below the £33.8mln NAV ascribed to the firm’s reserves by independent consultant Moyes& Co.
From a standing start it has already shown investors that it can add real and tangible value.
The shares are up 50% from the 1p where it raised £1mln through January’s IPO; however, some sellers have in recent months taken a chunk off the price, which at one point reached as high as 2p.
“Personally I think the shares are too cheap,” Connally said.
“I feel pretty good [about the performance], the only thing that has disappointed me was that I really believed the market would be more excited about hitting that 100 barrel a day milestone than it was.
“But, it came in the summer. It came in the market’s slow period, and perhaps it was too well anticipated”
Connally is confident that eventually the market will start to give it more credit for what is being achieved, as well as recognising the value and potential of its reserves as it moves nearer to the next target which stands at 250 barrels a day.
Northcote has given itself until July to hit this new target, though the ongoing programme it has there has the potential to beat expectations again.
At 100 barrels a day Northcote is poised to generate approximately US$2 million per year, assuming current prices and a production mix of 50% oil and 50% natural gas.
But, this is set to improve significantly as the ongoing programme is focusing on oilier projects from here forward.
As such, by the time Northcote is hitting its 250 barrel a day target the overall weighting of oil will have increased to about 70%. At that point revenues could be in the order of US$6.5 million per year, Connally explains.
“To me the maths is really simple, but, it is only the sort of thing that a nerdy guy like me pays attention to.
“If I get to the point where we’re generating solid cash flow out of the ground and for every barrel I produce I can re-invest cash flow and get, for example, two barrels, I’m going to make a lot of money over time.
“Now, we want home runs as well, but as long as we consistently add more barrels with each dollar we generate from the ground we are eventually going to create an asset base worth a huge amount of money for our investors
“While we do plan on drilling some big wells, you do not have to. If I can consistently take one barrel, sell it, pay off the cost of production and use the excess to get two more barrels over time that compounding effect is going to be enormous.
“So that’s what we’re trying to do.”
“We are looking at accelerating our drill programmes, partly because we feel we are in good position to do so and would like to aggressively start developing our asset base, but partly because I think investors want to see more development action and that should help reinvigorate the stock.
“If part of the problem is investors just want to see more action then I’m thinking ‘we got the opportunity, let’s give them the action'.
“We believe, based on the work we have done on the Mathis and OKE properties since acquisition, we have the potential to add huge production and reserves from accelerating our drill programme.”
That said, Connally explains Northcote is not the kind of share that has big bang exploration potential and it is not interested in being a pure explorer.
Investors aren’t going to switch on their computer one day and find the share hundreds of percent higher on any single piece of news and Connally admits he wouldn’t have the stomach for such a high risk approach; because the inverse is also true – sometimes the shares of such companies can fall precipitously.
“We want to deliver solid sustainable returns, let’s say that ‘all’ we were able to achieve was say 20% per year consistently every year.
“If we can get into a consistent mode of adding around 20% per year for ten years we’re going to make people a hell of a lot of money. I think we will have years where we can increase a multiple, but steady growth works just fine for me.
“Looking at it like the tortoise and the hare, I’m afraid to say it, we may be the tortoise, but in the end the tortoise won.”
Jazz T - 16 Oct 2013 08:53 - 7 of 21
Alex36
It looks to me like Randy Connelly is a very sharp cookie,and he is right on the steady
uplift in output and revenues.Also the price they paid for some of these assets look
a total steal and pay for themselves very quickly.This latest acquisition in Osage
County is a great example of that !
It looks to me like Randy Connelly is a very sharp cookie,and he is right on the steady
uplift in output and revenues.Also the price they paid for some of these assets look
a total steal and pay for themselves very quickly.This latest acquisition in Osage
County is a great example of that !
Alex 36 - 16 Oct 2013 15:30 - 8 of 21
Jazz,in that piece i posted earlier what stood out was the revenues they will be notching up.I am seriously considering putting this in my ISA :-)
"As such, by the time Northcote is hitting its 250 barrel a day target the overall weighting of oil will have increased to about 70%. At that point revenues could be in the order of US$6.5 million per year, Connally explains."
"As such, by the time Northcote is hitting its 250 barrel a day target the overall weighting of oil will have increased to about 70%. At that point revenues could be in the order of US$6.5 million per year, Connally explains."
Jazz T - 17 Oct 2013 15:04 - 9 of 21
Alex36
If they will be generating $6.5m pa soon you might want to fill your Isa mate!
If they will be generating $6.5m pa soon you might want to fill your Isa mate!
Stock Lee - 20 Oct 2013 18:56 - 10 of 21
I will be coming aboard here tomorrow .
Jazz T - 22 Oct 2013 11:32 - 11 of 21
Stock Lee
Welcome to the forum.
Have you seen what northcote,s MD said on Brr media the other day ?
http://www.brrmedia.co.uk/event/117017?popup=true
Welcome to the forum.
Have you seen what northcote,s MD said on Brr media the other day ?
http://www.brrmedia.co.uk/event/117017?popup=true
Alex 36 - 23 Oct 2013 10:25 - 12 of 21
Jazz,i found a recent post on advfn bb that you might find of interest :-)
From advfn bb
Since their last production update where they stated they were at over 100 boepd they have acquired two additional new assets in Osage County and Texas.These have existing production "net to northcote" of a combined 49 boepd + 60MCF ( 60Mcf = 10.3 boepd ) so they must already be at over 160 boepd before they report the latest workover & frac results.So it is likely they are closing in quickly on 200 boepd in the very near future.
We currently have the following work in progress and some about to report.
From 7th October RNS:
* The fully funded fracture stimulation of West Little Drum will commence
this week:
* The frack equipment is arriving on site and operations will commence on
9 October 2013
* The surface location has been fully prepared and the necessary water
volumes have been procured
* The on-going fracture stimulation programme is in line with the Company's
strategy to reach its 250 BOEPD production target by 31 July 2014, with
additional work underway including:
+ Drilling of a high impact horizontal Mississippi Lime well at 100%
owned Mathis Project with spudding anticipated by the end of 2013
+ Continuation of work programme at OKE Project (100% WI) to achieve
production target at that property of 50 BOPD gross by the end of the
year
+ Lauren Blaire, the last of the four Little Drum wells to be brought
back online following completion of the pipeline project, is being
brought online this week
+ Results from on-going well completions across the Company's portfolio
Northcote's Chief Executive Officer Randy Connally said, "We are pleased to be
commencing the third frack in the programme and to be in the preparation and
planning stages for the fourth. The design of a frack programme is subject to a
number of variables. The information gathered will be used to refine each
successive frack and we expect to see continual improvement in future fracks at
Horizon. We look forward to announcing the results of West Little Drum in due
course as we continue to grow production towards our 250 BOEPD target."
From advfn bb
Since their last production update where they stated they were at over 100 boepd they have acquired two additional new assets in Osage County and Texas.These have existing production "net to northcote" of a combined 49 boepd + 60MCF ( 60Mcf = 10.3 boepd ) so they must already be at over 160 boepd before they report the latest workover & frac results.So it is likely they are closing in quickly on 200 boepd in the very near future.
We currently have the following work in progress and some about to report.
From 7th October RNS:
* The fully funded fracture stimulation of West Little Drum will commence
this week:
* The frack equipment is arriving on site and operations will commence on
9 October 2013
* The surface location has been fully prepared and the necessary water
volumes have been procured
* The on-going fracture stimulation programme is in line with the Company's
strategy to reach its 250 BOEPD production target by 31 July 2014, with
additional work underway including:
+ Drilling of a high impact horizontal Mississippi Lime well at 100%
owned Mathis Project with spudding anticipated by the end of 2013
+ Continuation of work programme at OKE Project (100% WI) to achieve
production target at that property of 50 BOPD gross by the end of the
year
+ Lauren Blaire, the last of the four Little Drum wells to be brought
back online following completion of the pipeline project, is being
brought online this week
+ Results from on-going well completions across the Company's portfolio
Northcote's Chief Executive Officer Randy Connally said, "We are pleased to be
commencing the third frack in the programme and to be in the preparation and
planning stages for the fourth. The design of a frack programme is subject to a
number of variables. The information gathered will be used to refine each
successive frack and we expect to see continual improvement in future fracks at
Horizon. We look forward to announcing the results of West Little Drum in due
course as we continue to grow production towards our 250 BOEPD target."
Jazz T - 23 Oct 2013 13:51 - 13 of 21
alex
Good post that and very much my thoughts too,i have a hunch this will soon be a very
popular share and those in under 1.3p will be very happy in not too distant future!
Good post that and very much my thoughts too,i have a hunch this will soon be a very
popular share and those in under 1.3p will be very happy in not too distant future!
kayha - 27 Feb 2014 09:43 - 14 of 21
LISTEN: Randy Connally, Managing Director of Northcote Energy, provides an in depth company update to BRR Media
Click here to listen
Click here to listen
js8106455 - 14 Jul 2014 13:35 - 15 of 21
js8106455 - 30 Sep 2014 12:55 - 16 of 21
Northcote - Positive operations update primarily in respect to its Shoats Creek Project
Click here
Click here
js8106455 - 07 Jan 2015 08:41 - 17 of 21
js8106455 - 14 Jan 2015 10:42 - 18 of 21
js8106455 - 12 Feb 2015 14:44 - 19 of 21
js8106455 - 11 Mar 2015 08:33 - 20 of 21
mentor - 10 Aug 2015 15:17 - 21 of 21
Going nowhere but down
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