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LONDON (Alliance News) - Northcote Energy Ltd and Red Rock Resources PLC Thursday said the drilling at the Shoats Creek project in the US state of Louisiana is starting to show real results, and plans are being drawn up to expand the field further.
The pair said the Lutcher Moore-20 well is now producing 100 barrels per day, with each London-listed company taking 20 barrels per day each. At an oil price of USD45 per barrel, that should generate monthly revenue of USD27,000, Northcote said, suggesting it would be the same for Red Rock.
Brent crude oil was trading just below USD47 per barrel on Thursday morning in London.
The Lutcher Moore-19 well has been re-completed and testing is in progress. Work originally started back in June to change the formation from which it was producing, moving from the deeper Cockfield horizon to the Frio formation.
Notably, the well has produced an average of 40 barrels per day over a three-day test period under natural pressure, but the oil was found to be "over 50% better" than that achieved by Lutcher Moore-20.
Lutcher Moore-19 will be added to full-time production shortly. Red Rock and Northcote each hold a 20% working interest and a 14.4% net revenue interest in the well.
Lutcher Moore-14 also has produced an average of 40 barrels per day over a 24-hour test period alongside 2.5 million cubic feet of gas. Northcote holds a 70% working interest in that well and Red Rock did not reveal its own stake in the well.
Lutcher Moore-21 is being prepared for drilling and a date for activity to start will be confirmed soon.
Lutcher Moore-15 has passed a test that will allow it to be used for all on-site disposal of Shoats Creek salt water volumes.
The partners on Shoats Creek said development opportunities have been identified in the field and a plan to begin and expand natural gas production and sales is in progress.
Northcote shares were up 3.6% to 0.0285 pence Thursday, and Red Rock shares were up 11% to 0.470p.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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