Last checked at 30 Aug 2023 09:50
30 August 2023
Nostra Terra Oil and Gas Company Plc
("Nostra Terra" or "the Company")
Favourable Ruling regarding Fouke Wells
Nostra Terra (AIM: NTOG), the international oil & gas exploration and production company with a portfolio of development and production assets in Texas, USA, is pleased to provide an update on the field allowable rules petition governing production at its Fouke Wells.
Further to the announcement on 20 April 2023, where the Operator (Cypress Production Inc) requested a permanent increase in the allowable field rate from 82 bopd per well to 126 bopd per well, the final order approving the proposed change has been approved.
The final order approves the proposed amendment, increasing the production limit to 126 bopd per well. Furthermore, it cancels all accrued overproduction that has taken place since start-up. Hence the Company will not have to bear any consequences for the overproduction to date.
The Fouke 1 and Fouke 2 wells (NTOG 33% working interest) are currently producing 88 and 91 bopd, respectively, both still above the original field limit. Cumulative production for the Fouke 1 (which commenced production January 2021) is 76,634 barrels of oil, and Fouke 2 (commenced production May 2022) is 56,294 barrels of oil.
To identify additional Fouke-like locations, the Company is undertaking further geological and geophysical work on the rest of the Pine Mills acreage, where it owns a 100% working interest.
Matt Lofgran, Nostra Terra's Chief Executive Officer, said:
"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. The Company continues to seek additional similar opportunities in the area."
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
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