Northcote to "aggressively start development activities at Shoats Creek"

PUBLISHED: 03 Oct 2014 @ 03:51 | Comments (0) |

Also issues Interim Results

Northcote (LSE:NCT) has released interim results for the six month period ended 30 June 2014.

Overview:

· Solid progress made to increase current and long term production profile across US onshore oil and gas portfolio – currently 190.9 BOEPD

· Acquisition of Shoats Creek project, completed August 2014 – workovers completed post period end have been highly successful, underpinning the Company’s belief it could be a company-maker

· Completed four recompletions of existing well bores at Zink Ranch – initial production at the first of these successfully increased production and following this, infrastructure upgrades were effectively implemented

· Flexible business model demonstrated through re-focus of resources to Shoats Creek, where the Company is operator, to strengthen production

· De-risked entry into significant hydrocarbon potential in Mexico through strategic agreement with AIM listed MX Oil plc

Northcote Managing Director Randall Connally said, “So far 2014 has been a great year for the Company having closed the acquisition of Shoats Creek in August 2014 and rapidly commenced the work programme at this exciting project. Additionally we are very proud of Northcote’s involvement with MX Oil plc and the upside that offers Northcote shareholders going forward. However, the Company did face a number of operational challenges in Oklahoma at the start of the period. We were delayed in initiating our 2014 work programme due to the severe winter weather in Oklahoma and the U.S. generally. Operational problems at the ‘OKE’, Libby and Tinker leases were not resolved until well into the second half of 2014; transitional issues related to infrastructure at Zink Ranch resulted in significantly lower production from this asset than expected in the first half of 2014.

“Finally, a number of wells at Horizon were offline for routine workover related issues. I am pleased to say that all of these issues were either addressed late in the first half or early in the second half of the year and we are now benefitting from production from all of these assets at daily rates substantially in excess of the average rate during the first half of 2014.

“The positive cash flow impact of all of our properties being able to produce at or near full capacity has given us the boost to aggressively start development activities at Shoats Creek.”

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