North American Petroleum issue Oklahoma update

PUBLISHED: Jun 05 2014 @ 16:47 | Comments (0) |

In tandem with Northcote Energy

North American Petroleum Plc, a company focussed on developing its interests in proven US onshore oil and gas formations, notes that Northcote Energy Ltd (LSE:NCT), its partner and operator of the 1,520 gross acre Zink Ranch Project in Oklahoma, has announced initial gross flow rates for the 8-A well at 11.5BOPD and 159MCF/D which equates to 38BOEPD gross and 9 BOEPD net to NAP.

The 8-A well, in which NAP holds a 23.4% interest, is one of four recently recompleted wells at Zink Ranch which are the first four of a 14 well recompletion programme planned for 2014.

The results of the other three recompleted wells alongside longer test production rates for the 8-A will be announced by Northcote and NAP in due course. 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, “At 38 boepd gross, initial production from 8-A is above the operator’s original expectations and is expected to result in the recovery of costs within just three months. While performance will vary for each individual well, we are nevertheless delighted with the outcome of the first recompletion of an existing well bore on Zink Ranch into a previously untapped payzone.

“I look forward to providing further updates on our multi-well development and drilling programme for 2014, as we focus on delivering on our objective to rapidly grow NAP’s production and reserves.”

Northcote’s Chief Executive Officer Randall Connally said, “At the commencement of the Zink programme, I expected that each of the fourteen wells would contribute an average gross increase in production of 10BOEPD. Therefore, whilst the outcome from each of the 14 Zink recompletions will vary, the 8-A gets the programme off to a strong start.

“Furthermore, the strong production from the 8-A test means we expect the incremental revenues to repay the investment capital on that well in under 3 months further demonstrating the attractive economics of the programme.”

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