🕐21.05.14 - 11:27 Uhr

NORTH AMERICAN PETROLEUM: SIGNIFICANT INCREASE IN GAS VOLUMES BODES WELL FOR HIG
HER OIL PRODUCTION AT ZINK RANCH PROJECT OKLAHOMA FOLLOWING RECOMPLETION OF 4 WELLS



North American Petroleum Plc/ Index: ISDX / Epic: NAPP / Sector: Oil & Gas 21 May 2014 North American Petroleum Plc (NAP or the Company) Update on Zink Ranch Project, Oklahoma North American Petroleum Plc, a company focussed on developing its interests in proven US onshore oil and gas formations, notes that Northcote Energy Ltd (AIM: NCT) (Northcote), its partner and operator of the 1,520 gross acre Zink Ranch Project (the Project) in Oklahoma, has today announced that gas production from four wells recently recompleted on the Project, in which NAP has a 30% working interest, has increased significantly.

Northcote believes this is a positive indicator for an increase in the rate of oil recovery.

These four wells are the first of a 14 well recompletion programme planned for 2014 which is targeting a substantial increase in production at Zink Ranch.

This update is in line with NAPs strategy to rapidly build net production and reserves through the acquisition and development of leases in liquids rich hydrocarbon plays. NAPs Managing Director Stefan Olivier said, "The decision by the operator to install equipment to recover and monetise the gas produced from the four recompleted wells demonstrates the significant increase in gas production at Zink Ranch.

Once in place we will be in a position to establish stable oil and gas production rates for each of the wells.

In the meantime, the elevated gas levels seen to date at Zink Ranch bode well for oil recovery at the four wells and I look forward to providing further updates on the performance of these wells and the continued roll-out of our multi-well workover programme." Northcote Energy Ltds full release Northcote (AIM: NCT) provides the following update on the first four wells recompleted at the Zink Ranch Project. At acquisition Zink Ranch had modest gross gas production of 60Mcf/d.

Since recompleting the first four of a fourteen well programme, gas production has substantially increased, with the 8-A well alone currently producing an additional 60 Mcf/d of gas. Since recompletion Northcote has been monitoring the impact of the gas volumes and whether the incremental gas production would decline.

This has not occurred and therefore the Company will install a gas compressor and associated infrastructure to manage the higher volumes and monetise this increased gas production.

Upon completing this additional work Northcote expects the oil and gas production to stabilise, enabling the impact of the recompletions on the combined oil and gas output to be announced in due course. Northcotes Chief Executive Officer Randall Connally said, "As these are gas drive reservoirs, a significant increase in natural gas volumes is a positive indicator for future performance as an increase in natural gas volumes should portend an increase in the rate of oil recovery.

However, the increase in pressure on certain well bores has made it difficult for us to pump our wells down and get a good test on the oil.

We believe that the new steel flow lines we will install next week as well as a compressor to move more natural gas will allow us to get good tests on these wells and this will also support future planned field development at this site, which has a number of high impact development opportunities." **ENDS** For further information and the full Admission document visit www.napetroleum.com or contact the following: Stefan Olivier Brinsley Holman North American Petroleum Plc Keith, Bayley, Rogers & Co. +44 (0) 7595 779520 +44 (0) 207 464 4090 Frank Buhagiar St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Lottie Brocklehurst St Brides Media and Finance Ltd +44 (0) 20 7236 1177
Notes North American Petroleum Plc acquires leases in producing onshore US formations such as the Mississippi Lime, Oklahoma, where the application of new techniques and technologies such as horizontal drilling and fracture stimulation can dramatically improve recovery rates.

Revenues generated out of production are reinvested into both new wells and into the acquisition of additional leases to build a portfolio of producing and undeveloped assets focussed on lower risk oil rich plays.

To date, NAP has acquired 1,523 net mineral acres in the liquids rich Mississippi Lime play and has interests in 31 producing wells and a further eight either drilling or waiting to spud.

The value, as determined by an independent appraisal of NAPs proven reserves currently stands at US$21m and is broken down as follows: 1.

PV10 of US$6.7m (as of 1 November 2012) for NAPs 28.7%/21.65% working/net revenue interest in the Steele and Steinberger wells in Osage County Oklahoma 2.

PV10 of US$10.064m (as of 1 November 2012) for NAPs 24.2%/16.8% working/net revenue interest acquired in the Little Drum Unit in Osage County, Oklahoma 3.

PV10 of US$4.29m (as of 1 September 2013) for NAPs 30%/23% working/net revenue interest acquired in the Mathis Unit in Osage County, Oklahoma
[cid:image002.png@01CECBDD.61F8A860] Frank Buhagiar St Brides Media & Finance Ltd 3 St Michaels Alley, London, EC3V 9DS www.stbridesmedia.co.uk Tel: 0207 236 1177 | Mob: 07788410221 | Twitter: @StBrides1



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