27th Feb 2014 13:18
LONDON (Alliance News) - Northcote Energy Ltd Thursday said it has increased its interest in its producing Zink Ranch Project and is commencing its 2014 development programme.
The onshore US oil and gas exploration and production company said it has increased its working interest in the Zink Ranch site in Oklahoma to 85% from 76%, with its net revenue interest increasing to 66.3% from 43.5%, for a cash consideration of USD850,000.
The company said the net interest increase will result in a higher return on every dollar of future development capital spent on the site.
Northcote also announced that its 2014 development programme will start next week across the whole of its portfolio, including Zink Ranch and Horizon. The company said the programme is designed to increase production beyond its 250 barrels of oil equivalent target and substantially increase the company's proven producing reserves.
The company said its drilling programme will include four to five new wells, workover or recompletion of up to 31 existing well bores and the fracture stimulation of at least two to three existing horizontal wells.
Finally, the company said it plans to issue GBP1.2 million zero-coupon secured convertible loan notes with a conversion price to shares of 1.1 pence, with the proceeds going towards the acquisition of additional interest in Zink Ranch and the initial development programme.
Northcote Energy shares were down 0.7% to 0.755 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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