The move is part of the company’s plan to increase its production and reserves in Oklahoma to 5,000acres by the end of 2013.
Following the transaction, the company’s total land position in Osage has increased to 4,080acres from the previous 462acres.
Northcote chief executive officer Randy Connally said that the acquisition fits perfectly with the company’s 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," Connally added.
"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 workovers, new wells and hydraulic fracture stimulation campaigns."
The company will acquire the WI under the GBP1.75m funds raised by it.
According to the company, the production through 15 producing wells with average gross daily production of circa 20 barrels of oil per day (BOPD) and 60MCF gas per day from the Skinner Formation is expected to generate net revenues of over $30,000 per month.
