30th Jun 2015 09:49
LONDON (Alliance News) - Northcote Energy Ltd on Tuesday said the drilling crew is now on site at the Lutcher Moore 20 well on the Shoats Creek project in Louisiana
The company said the well will be drilled to a total depth of 5,500 feet and it will provide further updates on the drilling in the future.
"Our Shoats Creek field has significant potential to deliver strong production with low breakeven oil prices. We believe that by twinning the previously producing Lutcher Moore 16 well, the risk associated with drilling a new well has been minimised, and with this in mind we were happy to increase our exposure to this well," said Managing Director Randall Connally.
The news came as Northcote published its results for 2014, with its pretax loss widening to USD9.8 million from USD3.8 million due to a sharp rise in administrative expenses, driven primarily by a USD5.6 million impairment taken on the value of its property, plant and equipment assets. Revenue for the company was USD1.4 million, up from USD989,000.
"We are proud that Northcote reacted quickly to the challenges that the current oil price environment posed to the company and to the wider industry. Our efforts in 2014 and since the year end have transformed Northcote from being a one-dimensional US focussed E&P company, to one that has a wide portfolio of interests that is geographically diverse," Connally added.
Northcote shares were down 5.5% to 0.1843 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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