Northcote Energy, an onshore US oil and gas exploration and production company, has announced the completion of its pipeline project and an update on its on-going fracture stimulation programme at its flagship 51% owned Horizon project, located in Osage County, Oklahoma.
- Mechanical issues at Big Hill 2, caused by excessive acid levels in the well bore following its fracture stimulation, have been addressed. Following the resolution of these issues the Big Hill 2 is back on test and results will be available in due course. Surface pressure readings of 250 psi compare favourably with the Big Hill #1 prior to its testing.
- Funds advanced to secure the frack of the next two wells - the next two fracks are fully funded and third frack is anticipated to commence in September 2013 with the fourth frack following shortly thereafter.
- Little Drum pipeline project completed to increase the salt water disposal capacity at the Little Drum Unit by utilising spare capacity at the Big Hill Unit, the highlights of this are as follows:
- Substantial increase in salt-water disposal capacity by up to 150%, from maximum rate of 4150 bbls. of salt water disposed in 30 days prior to completion, allowing for a proportionate increase in oil and natural gas production levels from the Little Drum Unit.
- The pipeline can now support salt-water disposal volumes of in excess of 10 000 bpd.
- The additional salt-water disposal capacity at the Little Drum Unit has already made a positive contribution to production rates but will also support the fracture stimulation of these wells as Northcote will have ample capacity to handle the higher water volumes associated with expected post-frack production rates
Northcote Energy Managing Director Randall Connally said, “Following the successful frack results at the Big Hill 1 well it became apparent that we had live hydrochloric acid coming into the Big Hill 2 at levels that would have ruined submersible pumping units and tubing. We therefore began a process of circulating fresh water into the wellbore to dilute the acid to acceptable levels. We have now re-initiated flow of this well and look forward to announcing results to the market in due course.
“While this process was underway we focused our efforts on completing the Little Drum salt water disposal pipeline both to increase production rates prior to stimulation of these wells, but also to support the increased water volumes that will result from fracture stimulation of these wells as part of our on-going work programme. With this in mind, we are also excited to have scheduled the first of the next two fracks at our Horizon project and will announce further information once the details are finalised. The pipeline project also had the benefit of increasing existing production and we expect this investment will be paid for from the increased liquids production, which is in line with our strategy to apply low cost high impact work programmes to increase production and provide a platform for future growth.”
Adapted from a press release by David Bizley