Northcote Energy advances on positive well frac

AIM-listed onshore US oil and gas exploration and production company Northcote Energy has reported initial positive results from the successful fracture stimulation of its Big Hill No. 1 well at the Horizon Project in Osage County, Oklahoma.

Testing at the well, in which Northcote has a 51.75% working interest, comprising a 41% net revenue interest, reported an open flow rate of up to 1,210 thousand cubic feet per day (Mcf/day) of natural gas, the group said.

This represented 215.5 barrels of oil equivalent per day (boepd) gross, 88.4 net to Northcote, representing a 1,200% increase on the three month average production prior to stimulation, the group said.

The group reported that the average since completion of the frac of 16 barrels gross of oil per day, where previously the well had not been an oil producer, provided further encouragement that the fracture stimulation had enabled the well bore to open up unexploited reservoir.

At open flow, inclusive of the oil production, the group reported that the well had demonstrated the potential to produce up to 231.5 boepd (net to Northcote 95boepd).

Randy Connally, Chief Executive Officer of Northcote, said: "We are delighted by the initial performance of the Big Hill No. 1 well which has the potential, once the choke is increased, to significantly increase production above the pre-frac levels. The success of the Big Hill No. 1 represents a big step towards meeting our 100 barrels of oil equivalent per day (boe/d) 2013 target."

Northcote Energy's share price was up 6.06% to 1.75p at 08:52.

MF