(MENAFN- ProactiveInvestors)-ADDS DETAIL FROM FINANCIAL RESULTS STATEMENT- Northcote Energy (LON:NCT) has begun drilling operations on a new well at the Shoats Creek property in Louisiana. The Lutcher Moore 20 well will be drilled to the depth of 5500 feet on an existing well pad at the project. The well is designed to be a 'twin' of Lutcher Moore 16 which previously in 1984 stopped producing because failed casing saw water leak into the well. Records show that the old well was yielding 100 barrels of oil per day before it stopped. "Our Shoats Creek field has significant potential to deliver strong production with low breakeven oil prices' said managing director Randall Connally. 'We believe that by twinning the previously producing Lutcher Moore #16 well the risk associated with drilling a new well has been minimised and with this in mind we were happy to increase our exposure to this well. 'I look forward to providing an update once operations have been completed which subject to success will ideally position us to extract further value from the multiple low cost high impact development opportunities we have identified on what we believe is a company-making asset." Northcote has also increased its stake in the new Lutcher Moore well to 93% (from 23%) following financial difficulties experienced by a partner. A third party has also acquired 7% in the well Northcote added. Separately in the company's full year results statement Connally said Northcote had reacted quickly to the challenges of lower oil prices. 'We recognise that 2014 was a difficult year for Northcote and its shareholders but we are confident that the worst is behind us' he said. 'Our efforts in 2014 and since the year end have transformed Northcote from being a one dimensional US focussed E&P company to one that has a wide portfolio of interests that is geographically diverse.' Northcote has in recent months positioned the company for new ventures in Mexico and Indonesia as well as its interests in North America. The junior oil and gas firm reported US$1.4mln of revenue for 2014 up from US$989000 in the prior year however the total cost of sales increased to US$1.5mln from US$793000. And gross losses amounted to US$135000 for the year. Administrative expenses increased to US$9.2mln from US$3.6mlnm and the group's pre-tax loss was US$9.7mln up from US$3.7mln in the preceding year. Northcote ended 2014 with US$5000 of cash and in the new financial period raised US$2.1mln (£1.4mln) in February and subsequently raised a further US$4.2mln (£2.8mln) in May. The board says that based on working capital forecasts it has sufficient capital to fully finance its currently committed working capital and investment obligations for more than 12 months.
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