Northcote Energy cut deal to drill new conventional well at Shoats Creek

PUBLISHED: 11 Mar 2015 @ 06:47 | Comments (0) |

New Shoats Creek Well Update

Northcote (LSE:NCT) has announced that it is has been informed by Aminex USA Inc., the Operator of Shoats Creek, that it has signed a rig contract to drill a new conventional vertical well at Shoats Creek Field.

Highlights:

· The new well, the Lutcher Moore #20, has been prepared and permitted and the company has signed a drill contract with 3&1 Enterprises T&R, Inc and secured the drilling rig
· The new well will be drilled to c.5,500 feet targeting the conventional Frio Formation
· The Company is advancing its well engineering and completion options with consultants that are specialists in the local area to carefully plan the completion programme
· Success at the Frio will unlock significant field level cash flow, prove up reserves and open up further multiple development opportunities at Shoats Creek
· Further updates regarding the timing of the new drill will be provided in due course

Northcote Managing Director Randall Connally said, “We are excited to be delivering on our plans to drill a new well, from which we stand better placed to benefit having secured a doubling of our working interest to 70% from the NAP USA Inc. acquisition. 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.

“During the latter part of 2014 we high-graded our Shoats Creek portfolio to focus on an initial package of wells that could be developed economically at current oil prices, the LM#20 is our first Shoats well and the first of these high-graded wells to be undertaken. We look forward to providing further updates on this programme when drilling commences.”

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