Good Morning Northcote Energy, the AIM listed US onshore oil and gas company, today announced positive initial results from the first of 6 fracs planned at the Horizon Project (51%WI) for 2013.

When in full production, the Company anticipates that this will contribute very significantly towards its 2013 100boepd target which was set on listing just 6 months ago. Shore Cap has included the news in this mornings flash note.

Please see below.

The share price is currently up 7.27% to 1.85p.
NORTHCOTE ENERGY+ (NCT, 1.65p, No Recommendation) - Oklahoma frac update.

Northcote Energy has released a very positive update on fracture stimulation of the Big Hill #1 well at its flagship Horizon project in Oklahoma, which has seen strong initial results with an open flow rate of up to 1,210mcf/d of natural gas reported.

Combined with a post-frac average of 16bopd (barrels of oil per day), this demonstrates open flow potential for up to 231.5boepd (barrels of oil equivalent per day).

Big Hill #1 was internally ranked as the most gassy and worst performing of Northcotes nine Mississippian wells prior to stimulation, so we are very impressed by the twelve fold increase in flow rates versus pre-frac levels, and oil production from a well which had not previously been an oil producer.

Testing of Big Hill#2 will recommence following the completion of remedial work, and plans for the fracture stimulation of two further wells are underway.

In the meantime, we believe that Northcote has already demonstrated the potential of the current fracture stimulation programme with results from Big Hill #1, which we expect to make a significant contribution towards the companys year-end production target of 100boepd (net). Shore Capital Stockbrokers Limited acts as Joint Broker to Northcote Energy. Best Lizzie [cid:image001.png@01CE5B83.61D426E0]