25th Apr 2014 11:48
LONDON (Alliance News) - Northcote Energy Ltd Friday said the first two re-completions of existing well bores have been completed at its Zink Ranch Project in Oklahoma, with a further 12 scheduled for the remainder of the year.
The Zink Ranch Project is located in Osage County in Oklahoma.
Northcote Energy said the re-completions provide access to new production at low cost as they involve perforating a new, untapped payzone from an existing well bore.
The company said it has had its cost for the two re-completions carried by North American Petroleum PLC under the farm-out agreement.
Last month Northcote said that North American Petroleum will earn an interest in only those wells at Zink Ranch in which it participates under the farm-out agreement. Under the terms of the deal, North American Petroleum must fund USD600,000 of Northcote's development costs at Zink Ranch in order to earn the interest.
"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 barrels of oil equivalent per day goal," Chief Executive Randall Connally said in a statement Friday.
Northcote Energy shares were down 6% at 0.611 pence per share Friday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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