Northcote Energy has signed an agreement with NAPP to acquire the entire issued share capital of NAPP’s wholly owned U.S. subsidiary, NAP USA Inc.
The acquisition increases the company’s working interest from 55% to 85% at Zink Ranch in Oklahoma and from 35% to 70% at Shoats Creek in Louisiana. Shoats Creek wells are expected to be the initial focus for the group. Northcote Energy will issue shares in the company to NAPP equal to 29.9% of Northcote’s enlarged issued share capital as of the date of closing.
“The combination of North American Petroleum’s U.S. assets with our own creates a larger and stronger company that still retains its focus on the development of its core assets in Oklahoma and Louisiana,” Northcote Managing Director Randall Connally said in a statement. “This transaction makes sense in any environment but particularly in the current low oil price backdrop.”