Investment company Red Rock Resources (LON:RRR) has been heartened by goods news from the Shoats Creek field in Louisiana, in which it has a stake.
The operator, Northcote Energy (LON:NCT), announced the completion of infrastructure upgrades at the field and the start of production operations at the LM20 well in which Red Rock has a 20% working interest and a 14.4% net revenue interest.
"The news from the operator that production is now beginning represents a milestone for Red Rock as we can now become for the first time an oil producer, and from a low cost onshore well,” said Andrew Bell, chairman of Red Rock.
“We look forward now to the drilling of LM21 and LM22 to increase production from the field. This achievement brings what we hope will be a growing revenue stream to Red Rock as a more diversified natural resource company," he added.