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Northcote Energy enthused by fracking success in Oklahoma

Last updated: 02:43 18 Nov 2013 EST, First published: 03:43 18 Nov 2013 EST

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The successful fracture stimulation of Northcote Energy's (LON:NCT) West Little Drum well in Oklahoma has led to a six-fold increase in production.

The well, on Northcote's 51%-owned Horizon project, cost US$150,000 to frack, well below budget, and is expected to pay back the investment on a net cash flow basis within 90 days.

Oil production from West Little Drum is up by more than 600% from pre-frack levels, although production continues to fluctuate. Nevertheless, over the most recent seven-day period, the well churned out 40 barrels of oil per day (bopd) on average, while since the well was fracked 20 days ago the average production has been 35 bopd.

Natural gas production at the four well Little Drum unit, which includes the fracked West Little Drum well, has increased from a pre-frack average of 43 million cubic feet per day (Mcf/day) in September to an average of 118 Mcf/day since resumption of natural gas sales, and averaged 171 Mcf/day for the first week of November, the most recent data available.

West Little Drum is the third of a four well frack programme for 2013, and the final well of the programme should be fracked before the end of the year.

Five additional horizontal wells on Horizon currently producing from the Mississippi Lime remain to be fracked.

"We are extremely excited by the development potential across our portfolio and expect to significantly add to our production, with our ongoing programme which includes the drilling of our first Mississippian horizontal well this year, as we rapidly advance towards our 250 BOEPD target," said Randy Connally, Northcote's chief executive officer.

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