Last checked at 12 Apr 2013 07:00
AIM: NTOG
12 April 2013
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Chisholm Trail - Fifth Well Spud
Nostra Terra, the AIM quoted oil and gas producer with projects in the USA, is pleased to announce that it has elected to participate in a fifth horizontal well ("CT5") in the Chisholm Trail Prospect, located in Oklahoma, in which it will have a 2.2% working interest. The CT5 horizontal well was recently spudded. The four wells drilled so far have exceeded the Board's expectations by a substantial margin.
The acquisition of new leases to consolidate interests and new well permitting has been ongoing in the Chisholm Trail Prospect area for the past six months. Once elections are received and made on further prospect wells, the Company will make relevant announcements.
Chisholm Trail Drilling Activity | |||
Well Sequence | Working Interest | Current Status | 10-day Comparative Production Average (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 | 505 |
Chisholm Trail 5 (CT5) | 2.2% | Drilling | TBA |
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"We are very pleased with the production levels from the Chisholm Trail Prospect and it is now our intention to continue to exploit this opportunity by partnering in additional wells."
"We note with interest the recent acquisition announced on 1 April 2013, by Gastar Exploration Ltd. (NYSE: GST) of 157,000 net acreage, a portion of which is located in Kingfisher County, Oklahoma, close to our Chisholm Trail Prospect area. We believe this acquisition supports our assertion that the area is a prolific new oil play."
Alden McCall, Chief Operating Officer of Nostra Terra, added:
"We have been monitoring the production performance of the first four wells drilled very carefully. Although we only have about 90 days of continuous production data, we are delighted to report that these early indications support continuation of the drill program that is underway.
NTOG maintains a policy of reporting stabilized production rates as averages, rather than Initial Production rates (IPs) because the former are much more meaningful indicators of on-going performance."
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
XCAP Securities plc (Joint Broker)
Jon Belliss / Halimah Hussain Telephone: +44 (0)207 101 7070
Alexander David Securities Ltd (Joint Broker)
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.