NORTHCOTE ENERGY LIMITED: Completion of Hydraulic Fracture Stimulation
NORTHCOTE ENERGY LIMITED: Completion of Hydraulic Fracture Stimulation Northcote Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas
3 May 2013
Northcote Energy Ltd (`Northcote' or `the Company')
Completion of Hydraulic Fracture Stimulation of Two Wells
Northcote (AIM: NCT), an onshore US oil and gas exploration and production company, is pleased to announce the completion of the hydraulic fracture stimulation of two wells, the Big Hill #1 and Big Hill #2 wells at the Horizon Project, in which it owns approximately a 51% Working Interest. The operations have been undertaken in line with the Company's strategy to increase production to reach its 2013 net production target of 100 boe/d in the Mississippi Lime formation in Osage County, Oklahoma.
Operations were completed in line with expectations and significantly under original budget estimates. The Big Hill #1 and Big Hill #2 wells were fracture stimulated by pumping approximately 20,000 barrels of water, referred to as load water, along with certain chemicals and rock salt, into each of the two wells in multiple stages.
Load water volumes are currently being recovered from the frac'd wells. As the load water is recovered the Company expects the oil cut, which is the percentage of oil in relation to total fluids, to increase for some period of time. As this ratio appears to stabilise, or flatten, and starts declining the Company will be able to assess the longer term impact on reserves and production from the fracture stimulation of these wells. The Company will report to shareholders as soon as meaningful production information is available.
Additionally, the Company is already in discussions with the operator and key suppliers to schedule the fracture stimulation of the next two wells. Further information will be provided on anticipated timings in due course.
Northcote's Chief Executive Officer Randy Connally said, "The completion of the fracture stimulation of the first two wells at the Horizon Project marks an exciting milestone for the Company as we advance towards our target of reaching 100 barrels of oil equivalent per day net production by the end of 2013. I look forward to providing updates on the recovery rates realised and timing of the next steps in our work programme over the coming weeks."
For further information visit www.northcoteenergy.com, see below or contact the following:
Randy Connally Northcote Energy Ltd +01 214 675 7579
Ross Warner Northcote Energy Ltd +44 7760 487 769
Dan Jorgensen Northcote Energy Ltd +44 (0) 20 7024 8391
Roland Cornish Beaumont Cornish Ltd +44 (0) 20 7628 3396
Jerry Keen Shore Capital Stockbrokers +44 (0) 20 7408 4090
Bidhi Bhoma Shore Capital Stockbrokers +44 (0) 20 7408 4090
Hugo de Salis St Brides Media and Finance +44 (0) 20 7236 1177
Elisabeth Cowell St Brides Media and Finance +44 (0) 20 7236 1177
Northcote Energy Ltd is a revenue generative US onshore oil and gas production company focussed on the rapidly emerging Mississippi Lime formation in Oklahoma. The Company participates with leading operators, including Midstates Petroleum and Chesapeake Energy, in low risk development plays where advanced techniques, such as horizontal drilling and fracing, are used to unlock known oil accumulations and dramatically improve recovery rates. Management is focused on increasing production through a multi-well drilling and fracing campaign in 2013.
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