Last checked at 18 Mar 2014 07:00
AIM: NTOG
18 March 2014
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
11% WI in New Chisholm Trail Well
Nostra Terra, the AIM quoted oil and gas producer with a growing portfolio of producing assets in the USA, is pleased to announce that it will participate in its fifteenth horizontal well in the Chisholm Trail Prospect (CT15), located in Kingfisher County, Oklahoma.
The CT15 (Curly 1-26H) well has been successfully spudded and drilled to total depth in the West Half of Section 26 in Township 17N-5W. The operator committed to drill to a True Vertical Depth (TVD) of approximately 7,000 feet and a Total Measure Depth (TMD) of 11,496 into the Hunton formation. Nostra Terra owns an 11.624% Working Interest ("WI") in the well, the third largest in our Chisholm Trail portfolio. The well is currently operated by Husky Ventures although once completed, it has been agreed that Ward Petroleum will become the operator.
The Curly well represents Nostra Terra's largest single interest well to be drilled since the Gant 1-27H was drilled by Ward Petroleum in the East Half of Section 27. The Gant well was originally drilled and completed in December of 2012, then reworked in September of 2013. After reworking, the 10-day production average jumped up to 471 boed. The Curly well is one drilling location East of Gant 1-27H.
Nostra Terra's Chisholm Trail portfolio has varying size interest in 15 wells, 8 producing and 7 in stages from permitting to fracking with multiple different operators. The majority of the wells are in the prolific Hunton Limestone formation, the remainder in the Mississippian. Well results have varied from 258 boepd to 555 boepd (a 10-day average during the initial 30 days of production). In addition the Company has many other potential drilling locations
Additional wells are being planned and permitted by a number of operators in Chisholm Trail. Nostra Terra will update shareholders of its participation in these wells once elections are made.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"Management is keenly focused on increasing production and therefore we are pleased to have secured another well with a large working interest, which is progressed as far as it is. This also helps demonstrate the exciting and dynamic nature of the play. CT15 is our third largest working interest of 11.62% in the highly productive Chisholm Trail prospect and follows very quickly after we revealed that the production rate of CT9 with a 7.4% WI nearly doubled management's expectations.
Alden McCall, Chief Operating Officer of Nostra Terra, added:
"The spud and drilling of Curly 1-27H were executed under a very unusual set of circumstances. Husky Ventures and Ward Petroleum had each proposed wells and challenged each other for operations before the Oklahoma Corporation Commission (OCC). However, Husky initiated drilling before a resolution had been reached by the OCC. Following negotiations between the parties, it was agreed that Husky would continue to operate the well through completion and that Ward would assume operations at that point. Nostra Terra delayed committing to the well until the resolution had been agreed upon. We are happy that an amicable resolution was achieved and we are delighted to add this high-interest well to our growing portfolio in the Chisholm Trail Prospect."
For further information, visit www.ntog.co.uk or contact:
Nostra Terra Oil and Gas Company plc
Matt Lofgran, CEO
mlofgran@ntog.co.uk Telephone: +1 480 993 8933
Shore Capital & Corporate Limited (Nominated Adviser)
Bidhi Bhoma / Toby Gibbs Telephone: +44 (0)20 7408 4090
Hume Capital Securities plc (Broker)
Jon Belliss / Abigail Wayne Telephone: +44 (0)20 3693 1470
Lothbury Financial Services Limited
Gary Middleton / Michael Padley Telephone: +44 (0)20 3440 7620