(Alliance News) - Nostra Terra Oil & Gas Co PLC on Wednesday said it has received approval to increase the production limit at the Fouke wells in the US state of Texas to 126 barrels of oil per day per well.
The approval also cancels all accrued overproduction that has taken place since start-up, meaning the company will not have to face any consequences for the overproduction at the Fouke wells.
"We are very pleased to have a positive result from the hearing, allowing the wells to be produced at these new limits while not requiring the company to make up for its past overproduction. It's the best possible result we could have achieved. These wells have provided strong cash flow and a great return on investment," said Matt Lofgran, chief executive.
The Fouke 1 and Fouke 2 wells - in which Nostra has a 33% working interest - are currently producing 88 and 91 barrels of oil per day, respectively, above the original field limit of 82 barrels of oil per day.
Cumulative production for the Fouke 1, which began production January 2021, is 76,634 barrels of oil, while cumlative production for Fouke 2, which began production May 2022, is 56,294 barrels of oil.
Nostra Terra is an oil & gas exploration and production company with a portfolio of development and production assets in the US state of Texas. It is currently undertaking geological and geophysical work on the Pine Mills acreage, where it owns a 100% working interest, to identify additional Fouke-like locations.
Shares in the firm were up 13% at 0.17 pence on Wednesday morning in London.
By Heather Rydings, Alliance News senior economics reporter
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Nostra Terra (NTOG)