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Northcote Energy’s first Zink Ranch well recompletion beats expectations

Published: 16:20 04 Jun 2014 AEST

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Northcote Energy’s (LON:NCT) programme of well recompletions at the Zink Ranch project, Oklahoma, has got off to an expectation beating start.

A total of 14 wells will be worked on during the programme and, according to chief executive Randall Connally, the improvement of the first one is almost four times better than anticipated.

In a two day test, following the recompletion, the 8-A well flowed at 38 barrels oil equivalent per day – comprising 11.5 barrels of oil and 149,000 cubic feet of gas.

"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,” Connally said.

“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."

Northcote said it will report on three further recompletions is due course.

The company said the 14 well recompletion programme is designed to increase production and it is expected to significantly enhance shareholder value.

North American Petroleum (ISDX:NAPP), which has a 23.4% interest in the well, said the improved well performance will help its strategy of rapidly building net production and reserves.

“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,” NAPP managing director Stefan Olivier said.

“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.”

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