8th Jun 2016 09:18
LONDON (Alliance News) - Northcote Energy Ltd and Red Rock Resources PLC on Wednesday said a re-entry and re-completion of the Lutcher Moore 19 well on the Shoats Creek field in Louisiana has been undertaken, whilst preparatory work progresses at the Lutcher Moore 21 well.
In separate but almost identical statements, the two companies said a decision was made to undertake a re-entry and recompletion of the Lutcher Moore 19 well, to target production from the Frio formation. Re-entry of the well did not form part of the 2016 work plan, but a decision to proceed with it was taken on on new advice and analysis, showing the potential to add meaningful reserves and production at low cost.
The well will be perforated and swabbed later this week, and initial results from this initiative are expected in the near term. A successful recompletion will potentially add several drilling locations to the inventory of viable Frio drilling locations at the Shoats Creek Field, both companies said.
Both Northcote and Red Rock hold a 20% working interest and 14.4% net revenue interest in the Lutcher Moore 19 well each.
Preparatory work to drill the Lutcher Moore 21 well is also proceeding, the two companies said, although the "originally forecast spud date of around the middle of May was delayed by a number of regulatory and other factors that have since been remedied".
Both Northcote and Red Rock hold a 20% working interest in the Lutcher Moore 21 well, and 14.4% net revenue interest each.
The Lutcher Moore 8, 16 and 17 wells have been plugged and abandoned, Northcote added, with 12 and 17 abandoned "opportunistically to take advantage of low costs for abandonment associated with the current down turn in oil prices and cheaper resulting costs for oil field services".
"The Lutcher Moore 16 [was abandoned] as a requirement to obtain an allowable from the State of Louisiana Department of Natural Resources to be able to sell oil from the Lutcher Moore 20 well" while "the Lutcher Moore 8 well [was abandoned] in anticipation of a similar requirement associated with the upcoming drilling of the Lutcher Moore 21 well", Northcote added.
Shares in Northcote were down 9.4% at 0.0281 pence on Wednesday. Shares in Red Rock were up 0.9% at 78.86p.
By Hannah Boland; [email protected]; @Hannaheboland
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