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.

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

Recommended

Which assets will benefit as the “jam tomorrow” bubble pops?
Investment strategy

Which assets will benefit as the “jam tomorrow” bubble pops?

With tech stocks, cryptocurrencies and many other “long duration” investments crashing hard, the “jam tomorrow” bubble looks to be bursting. John Step…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022
Seven cheap defence stocks to buy now
Share tips

Seven cheap defence stocks to buy now

We’ve got used to a world without war between major powers, but that era is coming to an end as Russia threatens Ukraine and China eyes Taiwan. Buy de…
21 Jan 2022

Most Popular

Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022