(Sharecast News) - Texas-focussed oil and gas exploration and production company Nostra Terra announced on Monday that the Fouke 2 well at its Pine Mills oil field in the east of the state had now reached total depth.
The AIM-traded firm said wireline logging was successfully concluded, adding that Fouke 2 encountered 23 feet of "excellent quality" pay sand in two intervals, significantly exceeding management expectations.
It said the upper pay interval was 17 feet thick, and located within the same reservoir horizon as the offset Fouke 1, but with a thicker, better quality pay section that located structurally higher.
The lower pay section, meanwhile, was six feet thick and situated in the Dexter interval of the Woodbine, which was wet in the Fouke 1.
Completion operations were currently underway, the board said.
"We're very excited about the results of the Fouke 2 well," said chief executive officer Matt Lofgran.
"The Fouke 1 well reached payout - where the full cost of the well was recovered - in under a year."
Lofgran said logging results from the well were better than Fouke 1, and also exceeded its pre-drill estimates.
"Given the higher commodity prices in today's market and the expected production rates from the Fouke 2, we anticipate an even more rapid payout for this well."
At 1414 GMT, shares in Nostra Terra Oil and Gas Company were down 0.98% at 0.46p.
Nostra Terra (NTOG)