Northcote plans to raise Mississippi Lime output
Northcote Energy Ltd. expects net production from its Oklahoma properties to more than double to 250 boe/d in July from 100 boe/d at the end of 2013.
Plans call for drilling three wells and completing 14 workovers in the company's core focus area in Osage County, Okla., during 2014. The wells will primarily target the Mississippi Lime formation. Northcote holds 4,620 net acres in Osage County and has interests in 36 producing wells spread across the Horizon, Mathis, OKE, and Zink Ranch project areas.
Northcote said lateral lengths for horizontal wells drilled in the Mississippi Lime play range from 2,500-5,000 ft and are fracture stimulated in 6-12 stages. Drilling and completion costs range from $2.4-2.9 million/well.
Northcote holds 6,060 net mineral acres in Oklahoma and holds estimated proved reserves of 2.49 million boe.
The company, based in London, went public in January 2013 and is backed by a number of investors including Riverbend Energy LLC, Horizon Drilling Partners LP, and two company executives.
Los Angeles moves closer to fracing ban
In a 10-0 vote, the Los Angeles City Council voted in late February to draft an ordinance that would ban hydraulic fracturing and other well stimulation techniques within city limits. The measure would make Los Angeles the first city in California with active oil and gas development to issue such a ban.
Law firm Sidley Austin LLP said the ordinance "would be expansive, banning both well stimulation and the use of waste disposal wells within city limits." By prohibiting waste disposal wells, the planned ordinance would also pose challenges for conventional development.
The Los Angeles Daily News said the vote was motivated by concerns that hydraulic fracturing could have adverse health effects and the possibility that wastewater injection wells could generate seismic activity.
Los Angeles is home to 1,880 active and 2,932 abandoned oil and gas wells.