Last checked at 10 Sep 2013 07:00
AIM: NTOG
10 September 2013
Nostra Terra Oil and Gas Company plc("Nostra Terra", "NTOG" or the "Company")
Verde Update - New Well Spud200% Return Expected On First Verde Well By Year End
Nostra Terra, the AIM quoted oil and gas producer, with a growing portfolio of horizontal and vertical drilling projects in the USA, is pleased to announce the spudding of the next development well in the Verde Prospect, located in Colorado.
The first well reached payout in approximately 10 months and continues to be a strong producer with expectations that net proceeds will reach 200% of the initial well and acreage costs by the end of this year. The second well was cored and qualifies as a water injection well that has been reserved for future water flooding. The third well will be drilled to a depth of approximately 5,300 feet to further expand the prospect. The drilling of the third well is expected to take less than 20 days, followed by completion and initial production testing.
Nostra Terra owns a 16.25% working interest in this program of development wells, but has recently increased its working interest in this well to 17.54%. The prospect is operated by Plainsmen Partners, LLC and is located in south-eastern Colorado.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"An expected 200% return on our first Verde well in such a relatively short time gives us confidence in the Verde prospect and we're pleased to report the spudding of our third well in this Prospect. As the year progresses, we anticipate several more wells will be added throughout our portfolio, increasing revenues to the Company which we will continue reinvesting into additional production."
Nostra Terra will make further announcements as the operations progress.
For further information, visit www.ntog.co.uk or contact:
Nostra Terra Oil and Gas Company plcMatt Lofgran, CEOmlofgran@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 (Broker) Jon Belliss Telephone: +44 (0)20 7101 7070
Lothbury Financial Services LimitedGary Middleton / Michael Padley Telephone: +44 (0)20 3440 7620
Notes to Editors:
Nostra Terra Oil and Gas Company has rapidly grown its portfolio of commercial wells in oil and gas producing states in the USA. From an initial foray into the state of Kansas in the USA back in 2009, the company has extended its reach to include Texas, Colorado, and, most recently, Oklahoma.
The initial step of Nostra's development plan was to buy into non-operated interests. The company has continued building on this concept by both investing in more prospects and progressively to include much larger stakes.
The company has ambitions beyond this to add greater and greater shareholder value and the next step to that end is to originate its own plays in-house. Nostra is currently working on plays where it will operate and control its own destiny and pace of drilling, as announced in November of last year. The plays will be highly targeted through the integration of proprietary geological, geophysical and engineering interpretations.