5 Jun 2014 07:00
Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas
5 June 2014
Northcote Energy Ltd ('Northcote' or 'the Company')
Correction Announcement: Positive Results From First Zink Ranch Well Test
This is a correction for a previous announcement (RNS 7621I) released on 4 June 2014. It increases the Company's net production figure, based on initial gross flow rates for the 8-A well at the Zink Ranch Project, to 17BOEPD from the previously reported figure of 10BOEPD. The gross figure of 38BOEPD is unchanged.
The full amended text is shown below.
Northcote (AIM: NCT) is pleased to announce positive initial gross flow rates for the 8-A well at its Zink Ranch project, over a 2 day test, of 11.5BOPD and 159MCF/D equating to 38BOEPD (net: 17BOEPD). This is the first result from the Company's 14 well recompletion programme at Zink Ranch, with results of a further 3 recompleted wells, alongside longer test production on the 8-A, to be announced in due course.
As the Company installs the pipeline and compressor required to support the higher field natural gas volumes, it is completing and testing each well in series before bringing all four recompleted wells into production.
By undertaking 14 recompletions at Zink Ranch, Northcote is adopting a portfolio approach to re-disk exposure to any one recompleted well. The programme has been designed to deliver an increase in production and return, which on average over the 14 recompletions will, the Directors believe, significantly enhance shareholder value.
Northcote's Chief Executive Officer Randall Connally said, "At the commencement of the Zink programme, I expected that each of the fourteen wells would contribute an average gross increase in production of 10BOEPD. Therefore, whilst the outcome from each of the 14 Zink recompletions will vary, the 8-A gets the programme off to a strong start.
"Furthermore, the strong production from the 8-A test means we expect the incremental revenues to repay the investment capital on that well in under 3 months further demonstrating the attractive economics of the programme."
**ENDS**
For further information visit www.northcoteenergy.com or contact the following:
Randy Connally | Northcote Energy Ltd | +1 214 675 7579 |
Ross Warner | Northcote Energy Ltd | +44 7760 487 769 |
Dan Jorgensen | Northcote Energy Ltd | +44 20 7024 8391 |
Roland Cornish | Beaumont Cornish Ltd | +44 20 7628 3396 |
Jerry Keen | Shore Capital Stockbrokers Limited | +44 20 7408 4090 |
Bidhi Bhoma | Shore Capital Stockbrokers Limited | +44 20 7408 4090 |
Stefan Olivier | Cornhill Capital Limited | +44 20 7710 9618 |
Hugo de Salis | St Brides Media and Finance Ltd | +44 20 7236 1177 |
Elisabeth Cowell | St Brides Media and Finance Ltd | +44 20 7236 1177 |
All of the technical information, including information in relation to reserves and resources that is contained in this announcement has been reviewed internally by the Company's Technical Director, Mr. Kevin Green. Mr. Kevin Green is a Petroleum Geologist who is a suitably qualified person with over 30 years' experience in assessing hydrocarbon reserves and has reviewed the release and consents to the inclusion of the technical information.
Notes:
Northcote Energy Ltd is a producing oil & gas company with a portfolio of US exploration and production assets principally focused in Osage County, Oklahoma. The Company has substantial acreage in the US where its primary focus is on the Pennsylvanian and Mississippi Lime formations. Northcote is currently undertaking a continuous 2014 work programme which includes recompletions, new wells, fracks and workover programmes in order to grow Northcote's production and reserves.