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.
NAP is acquiring a 30% working interest and 23.4% NRI in the Zink Ranch project from Northcote Energy (NCT).
Zink Ranch comprises 9 ½ quarter sections totalling an area of 1,520 gross acres, 456 of which are attributable to the company. 15 vertical wells are currently producing 28boe gross per day on the property, and as a result the entire acquired lease position is held by production.
Zink Ranch offers significant potential to increase production through the workover of the existing wellbores.
The operator has identified at least 18 proven behind pipe work overs to perforate and frack and a further 10 drilling locations, which could lead to an additional 10 off set wells.
In 2014, NAP intends to participate alongside Northcote in the workover of 14 existing wellbores and also the drilling of two new wells on Zink Ranch.
NAP managing director Stefan Olivier said, "The addition of Zink Ranch to our growing onshore US portfolio is potentially transformational for NAP with multiple increases on the Project’s existing gross production of 28BOEPD being targeted in the near term. Zink Ranch has been prioritised by the operator for rapid development in 2014, involving low cost workovers of existing bores and the drilling of at least two new wells."
