10th Mar 2015 09:06
LONDON (Alliance News) - Northcote Energy Ltd Tuesday said the operator of the Shoats Creek field in the US state of Louisiana has signed a rig contract to drill a new conventional vertical well at the field.
The operator of the field, Aminex USA Inc, has signed the rig contract with 3&1 Enterprises T&R Inc to drill the new well, Lutcher Moore 20.
The well will be drilled to a depth of 5,500 feet, targeting the conventional Frio formation, which would "unlock significant field level cashflow, prove up reserves and open up further multiple development opportunities" if the well is successful, Northcote said.
"The economics of this initiative are very attractive at today's oil prices, and over the coming weeks we will be using the time ahead of the commencement of drilling to carefully plan for success, utilising the experience of local parties," said Northcote Managing Director Randall Connally.
Northcote holds a 70% interest in Aminex USA, and a 35% interest in the Shoats Creek project, with Springer Oil and Gas LLC holding a 30% interest in the project, with North American Petroleum holding the remaining balance.
Northcote shares were down 4.6% to 0.124 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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