Northcote Energy sold its sake in a Texas gas field to Springer Energy.
Northcote has transferred its entire $350,000 interest in the South Weslaco gas feld in Hidalgo County to Springer, a US-based partnership in which Northcote has been granted a 48% equity stake in exchange for the asset transfer. Northcote is now free to focus on its core US properties in Louisiana as well as its existing opportunities in Mexico and Indonesia.
Northcote chief executive Randy Connally said: “This transaction allows us to use a non-core asset to structure a vehicle that will continue to deliver a stream of cash flow from South Weslaco and give us access to upside from the investments made by Springer Energy.”