North American Petroleum has farmed-in to a 30% working interest in the producing 1,520 gross acre Zink Ranch Project ('Zink Ranch' or 'the Project') in Osage County, Oklahoma ('the Acquisition'). The Acquisition is in line with the Company's strategy to rapidly build net production and reserves through the acquisition and development of leases in liquids rich hydrocarbon plays.
◾ 30%/23.4% working/net revenue interest acquired in Zink Ranch which is majority owned by AIM quoted Northcote Energy plc
◾ Includes 15 vertical wells producing from the Skinner Formation that hold the leases by production - average gross daily production of approximately 18 barrels of oil and 60 thousand cubic feet of gas or 28 barrels of oil equivalent per day ('BOEPD')
◾ Significant scope to increase production in the near term
◾ Multiple low cost workover and fracture stimulation programmes - 14 existing wells targeted in 2014
◾ High impact development potential: 10 drilling locations identified with potential additional offsets - at least two new wells to be drilled in 2014