Last checked at 28 Jan 2013 07:00
AIM: NTOG
28 January 2013
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Chisholm Trail - Third Well Production Exceeds Expectations
Nostra Terra, the AIM quoted oil and gas producer with projects in the USA, is pleased to announce that the third horizontal well in the Chisholm Trail Prospect (CT3), located in Oklahoma, has exceeded the Board's expectations by a substantial margin. The most recent ten days of production have averaged 348 barrels of oil equivalent per day (BOEPD), 148 above the 200 BOEPD expectations announced by the Company in August 2012 when we first entered into the Chisholm Trail Prospect area. Nostra Terra owns a 12.58% working interest in this well.
The fourth horizontal well (CT4), where Nostra Terra has a 5.31% working interest, is still in the process of being cleaned up and will continue to recover a mixture of fraccing fluid, oil and gas during this process. Results are anticipated to be released shortly.
The acquisition of new leases and new well permitting continues in the Chisholm Trail Prospect area. Once elections are received and made on further wells, the Company will make relevant announcements.
Chisholm Trail Drilling Activity (currently permitted wells) | |||
Well | Working Interest | Current Status | Production (boepd) |
Chisholm Trail 1 (CT1) | 0.47% | Producing | 258 |
Chisholm Trail 2 (CT2) | 0.16% | Producing | 555 |
Chisholm Trail 3 (CT3) | 12.58% | Producing | 348 |
Chisholm Trail 4 (CT4) | 5.31% | Producing | (TBD) |
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"The net production from this well has a very positive impact on our cash flow. We are focused on delivering management's target of 125 boepd, net to NTOG shareholders and believe that Chisholm Trail, along with other prospects, will be a significant contributor towards that goal. We are excited for the year ahead and look forward to updating on progress on several fronts."
Alden McCall, Chief Operating Officer of Nostra Terra, added:
"We stated that the indications of productivity from early-stage flow rates on CT-3 appeared to be very much in line with similar wells in the area. We are delighted to report that the most recent 10-day average of CT-3 exceeds our expectations by around 75%. We anticipate that the CT-4 well will have stabilized sufficiently for the report of its 10-day average in the near future."
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
David Scott / Bill Sharp Telephone: +44 (0)20 7448 9812
Lothbury Financial Services Limited
Gary Middleton / Michael Padley Telephone: +44 (0)20 3440 7620
Notes:
In September 2012, Nostra Terra entered into an agreement with Ward Petroleum for the Chisholm Trail Prospect, a multi-well horizontal drilling project in Oklahoma. The prospect area is large in size and a leasing programme is on-going. Nearby drilling has resulted in several wells that produce in excess of 200boepd after the first 30 days of "flush" production. Nostra Terra owns a 20% interest in this active programme within which working interests in the individual wells vary. Based on results from neighbouring wells, we anticipate this prospect also has the potential to deliver rapid payouts with continued strong production levels.
Ward Petroleum Corporation, based in Enid Oklahoma, was founded in 1963 by Lew Ward, its Chairman. Mr. Ward is a past-President of the Independent Producers Association of America (IPAA) and is a respected member of the oil producers' community of the United States. Among its industry honours, Ward Petroleum has been listed in the top 100 fastest growing American companies by Inc. magazine, and has been named a "Blue Chip Enterprise" by Nations Business magazine. Since its founding, Ward Petroleum has drilled more than 800 wells in the Anadarko and Arkoma Basins, some as deep as 22,000 feet. Ward Petroleum operates nearly 350 wells in Oklahoma throughout both basins.
Oklahoma is the fifth largest producing state in the United States in crude oil production. Despite its long history, it still produces about one quarter of the peak rate that was reached in 1927. The state was the birthplace for such commonly recognized corporate names as Halliburton, ConocoPhillips and J. Paul Getty.