25 Apr 2014 07:00
Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas
25 April 2014
Northcote Energy Ltd ('Northcote' or 'the Company')
Operations Update
Northcote (AIM: NCT) is pleased to announce the following update on its Zink Ranch Project, located in Osage County, Oklahoma.
· First two recompletions completed (55% working interest and 45.45% net revenue interest) - initial production rates will be provided in due course
· Further 12 recompletions scheduled during 2014 at Zink Ranch
· The recompletions provide access to new production at low cost as they involve perforating a new, untapped payzone from an existing well bore
· Northcote has had its cost for these two recompletions carried by North American Petroleum Plc under the farm-out agreement announced 14 March 2014
· These recompletions are the first two of 31 planned workovers or recompletions scheduled for in the 2014 continuous work programme across all projects
Northcote's Chief Executive Officer Randall Connally said, "The initial two recompletions at Zink Ranch went very well from a technical and execution standpoint. In the Zink Ranch recompletion programme we are entering existing well bores and perforating and often fracking additional, previously unexploited zones we believe to be prospective for oil and gas. In some cases we will produce from existing zones as well as the newly completed objectives. The incremental production will therefore represent new previously untapped resources. This is a direct increase in value for the Company and with 12 more wells to re-complete in this manner we expect this one programme to make a material contribution to our 250 BOE/d goal. We look forward to initial results from these first two recompletions, and will report results to the market in due course."
The operator at Zink Ranch, Glenn Supply, has conducted two recompletions at the B-8 and the B-13 wells on the Zink Ranch acreage. The B-8 well was originally completed in the Bartlesville formation but the well bore has been recompleted in the very promising Skinner section, a zone which has been newly perforated by the recompletion. This zone received a light frack to transport the sand propant deeper into the formation. The B-13 well was recompleted and fracked in the Bartlesville Sand formation.
**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 Mississippi Lime formation. 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.