Northcote Energy (LON:NCT) has told investors that a rig has been contracted for a new well at the Shoats Creek project in Louisiana.
The planned the Lutcher Moore 20 well will be drilled to a depth of 5,500 feet to target the conventional Frio formation.
And the company says a success will unlock significant cash flow at field level.
A positive result would also prove up additional reserves and open up further development drilling opportunities.
This programme comes after Northcote and its partners ‘high-graded’ the Shoats Creek portfolio during 2014, Northcote managing director Randall Connally highlighted.
"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,” Connally said in a statement.
“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.”