Northcote Energy Ltd. has entered into a participation agreement and equity investment in CEB Resources plc for oil and gas opportunities in Indonesia. This provides a third area of interest for Northcote, alongside its existing opportunities in the reopening Mexican energy sector and its onshore US asset base.
In the agreement with CEB, Northcote will be entitled, at its option, to participate in up to 12.5% of CEB's participation in any concessions or other oil and gas transactions that it secures in Indonesia for a period of five years.
CEB has also signed an agreement with Corsair Petroleum (Singapore) Pte Ltd., whereby Corsair has agreed to assign a participating interest in a vehicle to CEB which intends to consider and, if applicable, apply for, two oil and gas concessions in Indonesia.
In addition, Northcote has subscribed for 50,000,000 ordinary shares of CEB at a placing price of $0.0061 (GBP 0.004) per share representing an investment of $305,120 (GBP200,000). Northcote earned the participation right in connection with introductions and assistance provided to CEB and its new management team in connection with this transaction.