Last checked at 25 Feb 2013 07:00
AIM: NTOG
25 February 2013
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Significant Milestone - Break Even Surpassed
Nostra Terra, the AIM quoted oil and gas producer with projects in the USA, announces that the greater than expected production from its wells in the Chisholm Trail prospect, combined with production from the rest of the Company's portfolio, has allowed it to surpass break-even in January 2013.
Following additional production from recent wells, the Company's anticipated monthly revenues for January 2013 are expected to be c. US$110,000 (net of royalties), more than double the November 2012 figure.
The first four Chisholm Trail wells were all successful producers exceeding the Board's expectations and represent an aggregate Working Interest ("WI") of 18.52%. The acquisition of new leases and new well permitting continues in the Chisholm Trail Prospect area. The Company is approximately a third of the way through the program and the Board anticipates that Nostra Terra could have an equal or greater aggregate WI in upcoming Chisholm Trail wells. These have the potential to materially enhance the Company's current production. The final WI percentage will not be known until all elections have been finalised.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"With our operating overheads now comfortably covered by production, free cash flow will be applied to the leasing and drilling of new wells. Several wells are planned for 2013 within Chisholm Trail as well as in other prospects. We will continue to minimise overheads and remain focused on growing our production throughout the year. As we are approaching our initial target of 125 boepd net to NTOG we are now turning our attention to our next target of 250 boepd."
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
Alexander David Securities Ltd (Joint Broker)
David Scott / Bill Sharp Telephone: +44 (0)20 7448 9812
XCAP Securities plc (Joint Broker)
Jon Belliss / Halimah Hussain Telephone: +44 (0)20 7101 7070
Lothbury Financial Services Limited
Gary Middleton / Michael Padley Telephone: +44 (0)20 3440 7620