NCT.L Share News (NCT)

AIM-listed oil and gas exploration and production company Northcote Energy has provided a positive update regarding its operations in Oklahoma.The company reported that progress had been achieved across all three areas of the company's project portfolio, which has a "P1 PV10" of $47.6m.A "PV10" refers to the present value of estimated oil and gas reserves net of estimated direct expenses and discounted at an annual discount rate of 10%.Among a number of developments outlined in relation to the group's Horizon Project in Osage County, the group reported that first fracture stimulation at the Big Hill 1H-12 well was expected to commence in the week beginning March 18th 2013. At the Bird Creek Project in Osage County, the group reported multiple developments including the Bray #1 well successfully having reached a target depth of 1,820 feet with "good oil shows" reported across 10 feet of pay from 1,704 to 1,714 feet. Randy Connally, Chief Executive Officer of Northcote, 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. He added: "Fracture stimulation can initially increase the productivity of a previously untreated well by two-to-30, and with this in mind, we look forward to announcing the outcome of these initiatives after production volumes have stabilised," he added.Northcote Energy's share price was unchanged at 1.65p at 09:15 on Wednesday.MF