The company will also carry out fracture stimulation on two existing horizontal wells in the Horizon Project, while it plans to commence first fracking by the end of February or in the beginning of March 2013.

Northcote will use hydraulic fracturing techniques at the unfracked horizontal wells in the Horizon Project, which will increase production 2 to 30 times, compared to untreated well.

Northcote Energy CEO Randy Connally said Horizon Project assets are currently producing from two pay zones, while plans are in progress to participate in the Burkhart #1 well to add additional zones.

"The presence of multiple pay zones in many areas of Oklahoma is one of the reasons the state has historically, and continues to be, one of the most prolific oil and gas producing states in the US," Connally added.

The company has average working interest of 37.5% in the 10 wells of Horizon Project, while it has acquired 3.125% working interest in the 800 gross acres on the Bird Creek Project in Osage County.

Northcote will drill two wells, the Bray #1 and the Keese #1 in H1 2013, to target the Bartlesville Sand formation, while drilling cost of both the wells are estimated to be $30,000.