29 Oct 2014 07:00
NORTHCOTE ENERGY LIMITED - Increased Production from Workover at Shoats CreekNORTHCOTE ENERGY LIMITED - Increased Production from Workover at Shoats Creek
PR Newswire
London, October 28
Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas 29 October 2014 Northcote Energy Ltd (`Northcote' or `the Company') Operations Update Northcote (AIM: NCT), an onshore US oil and gas exploration and productioncompany, is pleased to provide a positive operations update regarding itsconventional Shoats Creek Project, Louisiana, in which the Company has a 35%Working Interest (`WI'). This is in line with Northcote's strategy to increaseproduction through a combination of the low cost development of existingwellbores, including workovers and recompletions into additional payzones, andthe drilling of new well locations. Shoats Creek * 33% increase in gross production from the Lutcher Moore #9 well to 115 barrels of oil equivalent a day (30.2 BOE / d net) compared to the previously announced test rate of 86.5 BOE / d (22.8 BOE / d net) * Majority of production is oil - 73 barrels per day of oil and 255 thousand cubic feet per day of natural gas and follows further low cost work including additional perforations and a nitrogen flush with a coiled tubing rig and nitrogen unit * Following the successful workover of the Lutcher Moore #9 and #14 wells, the partners in Shoats Creek have agreed to continue the capital programme at Shoats: * + Lutcher Moore #20 well, has been permitted as a twin to the Lutcher Moore #16 + Further ongoing work at Shoats to be announced in due course. * The Lutcher Moore #12, a third well to undergo a low cost workover, has been shut-in following the collapse of the casing in the well bore and will not be added to production - the #12 had very good oil shows and is a strong candidate for a twin well to be drilled on the same location similar to the Lutcher Moore #16/20 wells * Shoats Creek has historically produced primarily from the Cockfield formation and has significant low cost development potential including: * + Workovers and recompletions to both existing and new payzones in up to 22 existing well bores + Multiple new drill targets in a number of formations including the Cockfield, the Frio and Wilcox identified using 3-D seismic data Northcote Chief Executive Randall Connally said, "Shoats Creek continues toprove itself worthy of our high expectations particularly due to its low costconventional nature which is relevant to the current pricing environment. Wehave received excellent results on the LM#9 well and while the casing issues atLutcher Moore #12 well have been disappointing, given that two of three wellsattempted to date have yielded a combined three day IP of approximately 180 BOE/ d, a 67% success rate is quite acceptable and we will be delighted for thatto be maintained. "Shoats Creek has 22 existing well bores, 15 of which we have identified ashaving re-entry potential. Following completion of the first three workovers,12 potential re-entry candidates remain. In our view these workovers representthe low hanging fruit with the real prize being the multiple new drillingopportunities in the Frio, Cockfield and Wilcox. Despite the number of wellbores already on the property, tremendous low cost drilling potential remainsin the Frio, the shallowest of the major objectives, and also in the Cockfield,based on 3-D seismic shot after the initial development of the formation. TheWilcox is a much longer term source of upside that is essentially untapped atShoats Creek, which has seen highly successful results by other operators inthe immediate vicinity." **ENDS** For further information visit www.northcoteenergy.com or contact the following: Randy Connally Northcote Energy Ltd +1 214 550 5082 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 +44 20 7408 4090 Limited Bidhi Bhoma Shore Capital Stockbrokers +44 20 7408 4090 Limited Stefan Olivier Cornhill Capital Limited +44 20 7710 9618 Hugo de Salis St Brides Media and Finance +44 20 7236 1177 Ltd Elisabeth Cowell St Brides Media and Finance +44 20 7236 1177 Ltd All of the technical information, including information in relation to reservesand resources that is contained in this announcement has been reviewedinternally by the Company's Technical Director, Mr. Kevin Green. Mr. KevinGreen is a Petroleum Geologist who is a suitably qualified person with over 30years' experience in assessing hydrocarbon reserves and has reviewed therelease and consents to the inclusion of the technical information. Notes: Northcote Energy Ltd is a producing oil & gas company with a portfolio of USexploration and production assets principally focused in Osage County,Oklahoma. The Company has substantial acreage in the US where its primary focusis on the Pennsylvanian and Mississippi Lime formations. Northcote is currentlyundertaking a continuous 2014 work programme which includes recompletions, newwells, fracks and workover programmes in order to grow Northcote's productionand reserves.