3 May 2013 07:00
NORTHCOTE ENERGY LIMITED - Completion of Hydraulic Fracture StimulationNORTHCOTE ENERGY LIMITED - Completion of Hydraulic Fracture Stimulation
PR Newswire
London, May 2
Northcote (AIM: NCT), an onshore US oil and gas exploration and productioncompany, is pleased to announce the completion of the hydraulic fracturestimulation of two wells, the Big Hill #1 and Big Hill #2 wells at the HorizonProject, in which it owns approximately a 51% Working Interest. The operationshave been undertaken in line with the Company's strategy to increase productionto reach its 2013 net production target of 100 boe/d in the Mississippi Limeformation in Osage County, Oklahoma.
Operations were completed in line with expectations and significantly underoriginal budget estimates. The Big Hill #1 and Big Hill #2 wells were fracturestimulated by pumping approximately 20,000 barrels of water, referred to asload water, along with certain chemicals and rock salt, into each of the twowells in multiple stages.
Load water volumes are currently being recovered from the frac'd wells. As theload water is recovered the Company expects the oil cut, which is thepercentage of oil in relation to total fluids, to increase for some period oftime. As this ratio appears to stabilise, or flatten, and starts declining theCompany will be able to assess the longer term impact on reserves andproduction from the fracture stimulation of these wells. The Company willreport to shareholders as soon as meaningful production information isavailable.
Additionally, the Company is already in discussions with the operator and keysuppliers to schedule the fracture stimulation of the next two wells. Furtherinformation will be provided on anticipated timings in due course.
Northcote's Chief Executive Officer Randy Connally said, "The completion of thefracture stimulation of the first two wells at the Horizon Project marks anexciting milestone for the Company as we advance towards our target of reaching100 barrels of oil equivalent per day net production by the end of 2013. I lookforward to providing updates on the recovery rates realised and timing of thenext steps in our work programme over the coming weeks."
**ENDS** For further information visit www.northcoteenergy.com, see below or contact thefollowing: Randy Connally Northcote Energy Ltd +01 214 675 7579 Ross Warner Northcote Energy Ltd +44 7760 487 769 Dan Jorgensen Northcote Energy Ltd +44 (0) 20 7024 8391 Roland Cornish Beaumont Cornish Ltd +44 (0) 20 7628 3396 Jerry Keen Shore Capital Stockbrokers +44 (0) 20 7408 4090 Limited Bidhi Bhoma Shore Capital Stockbrokers +44 (0) 20 7408 4090 Limited Hugo de Salis St Brides Media and Finance +44 (0) 20 7236 1177 Ltd Elisabeth Cowell St Brides Media and Finance +44 (0) 20 7236 1177 Ltd Notes:Northcote Energy Ltd is a revenue generative US onshore oil and gas productioncompany focussed on the rapidly emerging Mississippi Lime formation inOklahoma. The Company participates with leading operators, including MidstatesPetroleum and Chesapeake Energy, in low risk development plays where advancedtechniques, such as horizontal drilling and fracing, are used to unlock knownoil accumulations and dramatically improve recovery rates. Management isfocused on increasing production through a multi-well drilling and fracingcampaign in 2013.