I guess some people don't see the potential and are happy to stick with the likes of MAGP, NTOG etc. I am planning on being here for the long-term so we can gloat about having bought in at sub 1.50 prices when the price reach the 4p mark and we are sitting on tidy profits. There has been 6 RNS since Jan and as an investor that is a good flow of info and keeps me invested.
Northcote's Chief Executive Officer Randy Connally said, "The forthcoming commencement of Northcote's first fracture stimulation programmes at the Horizon Project signals an exciting time in the Company's development, which we are confident will result in substantially enhanced net production and group revenues. Fracture stimulation can initially increase the productivity of a previously untreated well by 2 to 30 times, and with this in mind, we look forward to announcing the outcome of these initiatives after production volumes have stabilised.
"We have already substantially increased production at Horizon having recently exercised an option to increase our working interest in the Horizon Project to 37.5% combined with the receipt of positive results from workover programmes at the project. We believe that this success, along with our decisions to deepen and drill wells across our entire Oklahoman portfolio and the range of corporate and acquisition opportunities currently available to the Company, bodes well for Northcote as we focus on exceeding our production targets for our first year of listing."
Horizon Project, Osage County: (average 37.5% working interest)
The fracture stimulation of the Big Hill #1, the first of two programmes targeted for this well and the Big Hill #2 well, is expected to commence during the week beginning 18 March 2013. The Big Hill frac tank liner project is now complete and the necessary water volumes are currently being procured from local sources. Results from the fracture stimulation will be announced in due course on the first 30 day average production rate after injected water volumes have been recovered. This usually occurs around 35 to 45 days after stimulation.
Northcote intends to utilise hydraulic fracturing techniques in relation to the unfracked horizontal wells on the Horizon Project as part of its strategy to significantly increase production. Hydraulic fracturing is the primary choice for enhancing production, and typically has the effect of increasing productivity 2 to 30 times compared to an untreated well, by increasing the amount of contact that the well bore has with high quality reservoir rock. Northcote's average working interest in the 10 wells currently producing in the Horizon Project is 37.5%.
The workover programme was initiated based on the evaluation of wells and bottomhole pressure tests run in December 2012 in preparation for the fracture stimulation programme. Whilst the work programme contained in the CPR in the AIM Admission Document detailed Steele 2-1 1H and Sarah (MS1) as being the initial two wells targeted for fraccing, the focus now is on fraccing Big Hill #1 and Big Hill #2 first, with further fracs to follow dependant on the results of these initial two. As part of the evaluation of wells, it was determined that Northcote could materially increase production from wells that were not part of the planned four well fracture stimulation programme th
* Progress achieved across all three areas of the Company's project portfolio which has a P1 PV10 of US$47.6million
* Horizon Project in Osage County:
* + First fracture stimulation at the Big Hill 1H-12 ("Big Hill #1") well expected to commence in the week beginning 18 March 2013 - preparation milestones met with necessary water volumes being procured locally
+ Second fracture stimulation targeting the Big Hill 2H-12 ("Big Hill #2) well to follow Big Hill #1
+ Burkhart #1 has reached target depth of 4,226 feet and intercepted oil shows in multiple objectives. Evaluating completions in Viola and Mississippi Lime formations
+ Solid progress on Little Drum unit workover programme - completion of salt water disposal pipeline system expected in next 30 days to substantially lift oil and gas production rates
* Bird Creek Project in Osage County:
* + Bray #1 well has successfully reached target depth of 1,820 feet with good oil shows across 10 feet of pay from 1,704 to 1,714 feet
+ Keese #1 well being permitted with drilling expected to commence in the next four weeks
+ Better of these two wells to be completed as producer and second well as a salt water disposal well
* DeAgua Project in Woods County:
* + Completion of salt water disposal well to service the Busse #1H and the Bouziden #1H-17 with production expected to commence in April 2013
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