Northcote Energy Eyeing Role in Indonesian Gas Project
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Northcote Energy Ltd is considering whether to take part in a gas project in Indonesia.
The company said it noted an announcement from Andalas Energy & Power about the latter’s decision to acquire a 30 percent stake in the Tuba Obi East (TOE) technical assistance contract in the South Sumatran basin about 19 miles north-west of Jambi city in Jambi province, Sumatra.
Andalas believes any future gas production from the concession may support either gas export, with the project being close to a major export route, or gas-to-power, being in an area facing energy shortages.
Northcote has the right to participate in any project alongside Andalas at a level equal to 12.5 percent of Andalas’s participation until the end of April 2020.
If Andalas tells Northcote it plans to press ahead with the project, Northcote has 20 days from the date of the notification to decide whether to take part.
Northcote managing director Randall J. Connally said: “We are very excited about the progress Andalas is making in Indonesia and its focus on natural gas projects which given the strong domestic market provide excellent potential for revenue diversification.
“Pursuant to our agreement with Andalas, Northcote will have 20 business days from the date we are notified of details regarding the project to make a decision as to our participation. Therefore we will notify the market in due course.”
Source: (March 9, 2016) Proactive Investors
About Northcote Energy
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.
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