14 Jul 2016 09:00
NORTHCOTE ENERGY LIMITED - Shoats Creek Production UpdateNORTHCOTE ENERGY LIMITED - Shoats Creek Production Update
PR Newswire
London, July 14
Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas
14 July 2016
Northcote Energy Ltd
(“Northcote” or “the Company”)
Shoats Creek Production Update
Northcote Energy Limited is pleased to update the market regarding the latest developments at Shoats Creek, which, is now poised to deliver revenue growth and positive operational cash flow.
Highlights
Lutcher Moore #20 (“LM#20), (Northcote 20% working interest (“WI”) and 15.08% net revenue interest (NRI”)), now sustainably producing net to Northcote 20 barrels per day (“bopd”) from the Frio formation – the equivalent of approximately US$ 27,000 gross revenue to Northcote per month, at current oil prices of US$ 45 per barrel; Lutcher Moore #19 (“LM#19) (Frio formation, Northcote 20% WI, 14.4% NRI) entry successfully recompleted and looking to move towards well testing shortly; Lutcher Moore #14, (“LM#14) (Frio formation, Northcote 70% WI), now tested 40 bopd and 2.5 million cubic feet (gross) of natural gas production over 24 hours; Northcote is in the process of negotiating a planned gas tie in at Shoats Creek, and hopes to report on the outcome of negotiations in the near-term; and, Lutcher Moore #15 passed a Mechanical Integrity Test (required every two years) and can be used for on-site disposal of all anticipated Shoats salt water volumes to be produced from Northcote wells.Northcote Chairman Ross Warner said, “We are pleased that our plans for Shoats Creek appear to be coming to fruition. Getting LM#14 and our other Shoats Creek wells producing and tied in for gas sales is our top near term priority, and once we have achieved this we believe that we will be in a position to consider other bores with re-entry potential in gassier pay zones at Shoats Creek, with a potential to generate additional low risk, low cost revenue to Northcote. At the same time, we are still committed to new Shoats Creek drill wells, such as LM#20 and LM#21, and as regards the later, we continue to work with contractors, vendors and partners in the planning of the well; we will update the market in due course once this is agreed. Finally, it is worth mentioning that a certain number of the recompletion projects, LM#19 for instance, were undertaken in part to obtain additional information about reservoir quality in different parts of the field, to be used in planning the location of future wells - including LM#22."
Lutcher Moore #19
As previously announced on 8 June 2016, the LM#19 well has now been recompleted as a Frio producing well following a successful squeeze job at the 5030’ level. The well was originally a production well in a deeper horizon, the Cockfield, and following internal analysis offered itself as a logical candidate to produce in the Frio.
In excess of 400 BBls of oil were recovered during initial operations, swabbing and testing, with a three-day average of approximately 40 barrels of oil per day under natural pressure. The oil cut in the LM19 is over 50% better than that achieved by the Lutcher More 20 well (“LM20”) and the recovered volumes, thickness of payzone, and high oil cut gives the partners enhanced confidence in the quality of the Frio sands in this section of the field. The LM19 will be added to full production in due course.
Lutcher Moore #21
Preparation for the LM 21 spud continues.
Additional Well Tests
Several existing well bores have been identified as having the ability to produce oil and gas and tested as follows:
Lutcher Moore #14: 24-hour test, 40 barrels of oil per day and natural gas at rates of up to 2.5 MMcf/d Robert Cain #1: 72-hour test, 10-15 barrels of oil per day and natural gas at rates of up to 100 Mcf/d Robert Cain #2: 72-hour test, 30 barrels oil per day and natural gas at rates of up to 350 Mcf/dPlans to initiate production from these wells are underway.
Natural Gas Sales
The project management team is undertaking discussions to tie-in production of natural gas utilizing one of two existing tie-in points located at Shoats Creek Field. Once gas sales can be undertaken, additional exploitation opportunities of well bores with re-entry potential in gassier pay zones holds substantial potential to generate additional low risk, low cost revenue at Shoats Creek Field.
Qualified Person
The technical information that is contained in this announcement has been reviewed by Mr. Kevin Green, a director of the Company and a Petroleum Geologist who is a suitably qualified person with over 30 years' experience in assessing hydrocarbon reserves and who has consented to the inclusion of the technical information.
**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 |
| Charlie Wood | Northcote Energy Ltd | +44 7971 444 326 |
| Roland Cornish | Beaumont Cornish Ltd | +44 20 7628 3396 |
| James Biddle | Beaumont Cornish Ltd | +44 20 7628 3396 |
| Elliot Hance | Beaufort Securities Ltd | +44 20 7382 8300 |
| Nick Bealer | Cornhill Capital Limited | +44 20 7710 9612 |
| Elisabeth Cowell | St Brides Partners Limited | +44 20 7236 1177 |
Notes:
Northcote Energy Limited is an entrepreneurial energy company with a diverse portfolio of US exploration and production assets in Louisiana and Oklahoma, and with business development opportunities in the US and Mexico, as well as Indonesia via a strategic relationship with Andalas Energy and Power Plc.
All of the technical information 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.