Northcote delivers positive update

Northcote Energy, the newly AIM-listed oil and gas company, has said that preparations for the fracture stimulation programme on its Horizon Project are going according to plan, and it expects to begin the fracture process in late February or early March. It also revealed that it has acquired a 3.125% working interest in the Bird Creek Prospect in Osage County, which comprises 800 acres. The company expects to participate in two well in the first half of 2013. The group has also said it will participate in the deepening of the Burkhart 1 well on the Horizon Project acreage, to further evaluate certain formations. The group holds a 3.69% working interest in the well. Furthermore, initial production rates are expected to be announced for both the Busse and Bouziden wells in Woods County. Northcote's Chief Executive Officer Randy Connally said: "Northcote's Horizon Project assets currently produce from two pay zones and by participating in the Burkhart 1 well, we will gain exposure to additional zones. "[...] taking small interests in new prospects, as we have done in the Bird Creek Project, with an eye toward increasing our interest as the prospect is de-risked is an important part of our growth strategy. "We plan to continue to participate in new wells, which are not part of our current lease and reserve base, when we have confidence that low cost incremental production has a high likelihood of success."He added that having exercised the option to materially increase its average working interest in the Horizon Project, and consequently increase its participation in these new wells, has given the company the confidence to believe that it is on course to further increase its net production and net reserves by the end of the year.NR