21 May 2014 09:00
Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas
21 May 2014
Northcote Energy Ltd ('Northcote' or 'the Company')
Zink Ranch update
Northcote (AIM: NCT) provides the following update on the first four wells recompleted at the Zink Ranch Project.
At acquisition Zink Ranch had modest gross gas production of 60Mcf/d. Since recompleting the first four of a fourteen well programme, gas production has substantially increased, with the 8-A well alone currently producing an additional 60 Mcf/d of gas.
Since recompletion Northcote has been monitoring the impact of the gas volumes and whether the incremental gas production would decline. This has not occurred and therefore the Company will install a gas compressor and associated infrastructure to manage the higher volumes and monetise this increased gas production. Upon completing this additional work Northcote expects the oil and gas production to stabilise, enabling the impact of the recompletions on the combined oil and gas output to be announced in due course.
Northcote's Chief Executive Officer Randall Connally said, "As these are gas drive reservoirs, a significant increase in natural gas volumes is a positive indicator for future performance as an increase in natural gas volumes should portend an increase in the rate of oil recovery. However, the increase in pressure on certain well bores has made it difficult for us to pump our wells down and get a good test on the oil. We believe that the new steel flow lines we will install next week as well as a compressor to move more natural gas will allow us to get good tests on these wells and this will also support future planned field development at this site, which has a number of high impact development opportunities."
**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.