Last checked at 18 Sep 2014 07:00
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Increased Production at Verde Prospect
Nostra Terra (AIM:NTOG), the oil and gas exploration and production company with a growing portfolio of assets in the USA, is pleased to announce the results of a recent workover in the initial well in the Verde Prospect Unit. The Company has a 16.25% working interest in the Verde Prospect, which covers 636 acres in south-eastern Colorado.
A recent workover of the State of Colorado 1-36 well (Verde1), in which Nostra Terra also has a 16.25% working interest, was undertaken by the operator. Following completion of the workover and during the most recent 10 days of production, the well produced at an average rate of 83.4 barrels of oil per day (bopd) gross.
When Verde 1 was originally put into production it averaged 64 bopd, which exceeded management's expectations. The well quickly reached first payout within nine months of initial production and surpassed its second payout earlier this year, prior to the workover. At the current production rate, the well should achieve its third payout early in the first quarter of 2015.
As a result of the successful reworking of Verde 1, a similar programme is now planned for the Holt #1 (Verde 3).
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"The Verde Prospect continues to be a good cash generating prospect in our growing portfolio of producing wells. Not only has the first well reached payout two times already, but after three years of production, when wells have usually declined far from their original highs, this well is now producing at a rate stronger than before.
Verde, along with Chisholm Trail, are examples of great non-operated prospects where we see production continuing to increase. The cash generated by these prospects alone means Management's time and energy can be focused on much larger opportunities such as our new White Buffalo Prospect in Wyoming where we are the operator with 100% working interest."
The technical information within this announcement has been reviewed by Alden McCall, the Company's Chief Operating Officer, a Certified Petroleum Geologist and a member of the American Association of Petroleum Geologists and the Society of Petroleum Engineers.
"Payout" is defined as the period of time it takes to recover the original capital expenditure invested in developing and drilling a well, from the net cash flow generated from production of such a well.
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
Northland Capital Partners Ltd
(Nominated Adviser)
Matthew Johnson / Lauren Kettle Telephone: +44 (0)20 7382 1100
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