2nd May 2014 11:32
LONDON (Alliance News) - Northcote Energy Ltd Friday said it has now finished four re-completions of existing well bores at its Zink Ranch Project in Oklahoma, with a further 10 scheduled for the remainder of the year.
The company's 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 the cost for the two most recent completions was carried by North American Petroleum PLC under its farm-out agreement. Under the terms of the deal, North American Petroleum must fund USD600,000 of Northcote's development costs at Zink Ranch.
North American Petroleum holds a 30% working interest in the wells, while Northcote has a 54% working interest.
Northcote Energy said the re-completions are part of 31 planned workovers or re-completions scheduled for in 2014 across all projects.
"We look forward to announcing results in the near term and believe that this continuing campaign will make a material contribution toward achievement of our previously stated 250 barrels of oil equivalent per day production target," said Chief Executive Randall Connally in a statement.
Northcote Energy said results for all four re-completed well bores will be provided when load water has been recovered and oil production has stabilised, which it said it expects to be in the near term.
Northcote Energy shares were up 2.5% at 0.625 pence Friday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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