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In partnership with Northcote Energy
North American Petroleum, a company focussed on developing its interests in proven US onshore oil and gas formations, notes that Northcote Energy Ltd (AIM:NCT) , its partner and operator of the 1,520 gross acre Zink Ranch Project in Oklahoma, has today announced that gas production from four wells recently recompleted on the Project, in which NAP has a 30% working interest, has increased significantly.
Northcote believes this is a positive indicator for an increase in the rate of oil recovery. These four wells are the first of a 14 well recompletion programme planned for 2014 which is targeting a substantial increase in production at Zink Ranch.
This update is in line with NAP’s strategy to rapidly build net production and reserves through the acquisition and development of leases in liquids rich hydrocarbon plays.
NAP’s Managing Director Stefan Olivier said, “The decision by the operator to install equipment to recover and monetise the gas produced from the four recompleted wells demonstrates the significant increase in gas production at Zink Ranch. Once in place we will be in a position to establish stable oil and gas production rates for each of the wells. In the meantime, the elevated gas levels seen to date at Zink Ranch bode well for oil recovery at the four wells and I look forward to providing further updates on the performance of these wells and the continued roll-out of our multi-well workover programme.”
Northcote Energy Ltd’s full release:
Northcote (AIM:NCT) provides the following update on the first four wells recompleted at the Zink Ranch Project.
At acquisition Zink Ranch had modest gross gas production of 60Mcf/d. Since recompleting the first four of a fourteen well programme, gas production has substantially increased, with the 8-A well alone currently producing an additional 60 Mcf/d of gas.
Since recompletion Northcote has been monitoring the impact of the gas volumes and whether the incremental gas production would decline. This has not occurred and therefore the Company will install a gas compressor and associated infrastructure to manage the higher volumes and monetise this increased gas production. Upon completing this additional work Northcote expects the oil and gas production to stabilise, enabling the impact of the recompletions on the combined oil and gas output to be announced in due course.
Northcote’s Chief Executive Officer Randall Connally said, “As these are gas drive reservoirs, a significant increase in natural gas volumes is a positive indicator for future performance as an increase in natural gas volumes should portend an increase in the rate of oil recovery. However, the increase in pressure on certain well bores has made it difficult for us to pump our wells down and get a good test on the oil. We believe that the new steel flow lines we will install next week as well as a compressor to move more natural gas will allow us to get good tests on these wells and this will also support future planned field development at this site, which has a number of high impact development opportunities.”
