Last checked at 20 Jun 2014 07:00
AIM: NTOG
20 June 2014
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Operations Update
Nostra Terra, the AIM quoted oil and gas producer with a growing portfolio of producing assets in the USA, is pleased to provide an update on the Company's High Plains Prospect located in Texas, and the Chisholm Trail Prospect located in Oklahoma.
High Plains Prospect (Texas)
The first exploration well in the High Plains Prospect has been leased and permitted, with drilling now planned during Q3 2014. The prospect covers 66 square miles and work continues to integrate detailed subsurface mapping and 3D seismic data that will prioritise further areas for drilling.
Nostra Terra has a 20% working interest ("WI") in the prospect, which is operated by Brown and Borelli.
The dependable revenue streams from Chisholm Trail mean the Company is in a better position to enter into higher-risk opportunities like High Plains with a view to strengthening its portfolio. The geophysical results indicate that High Plains has the potential to provide a healthy pipeline of drilling locations for some years to come.
Chisholm Trail Prospect (Oklahoma)
Nostra Terra has elected to participate in the 16th well (Bollenbach 1-33H) in the Chisholm Trail prospect (CT16). The proposed well will be drilled to an approximate 11,700 foot measured depth, at a true vertical depth ("TVD") of 7,180 feet, with a 4,200 foot lateral into the Hunton formation. Nostra Terra owns a 20.0% WI in the well which will be operated by Ward Petroleum. The total well cost is estimated at $4,154,000 ($830,800 net cost to Nostra Terra).
Nostra Terra has also elected to participate in the 17th well (Wilson 3-8-5H) in the Chisholm Trail prospect (CT17). The proposed well will be drilled to an approximate 11,500 foot measured depth, at a TVD of 6,840 feet, with a 4,200 foot lateral into the Hunton formation. Nostra Terra owns a 2.92% WI in the well, which will be operated by Stephens Production Company. The total well cost is estimated at $3,472,710 ($101,403 net cost to Nostra Terra).
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"While CT14 is flowing back, Ward Petroleum has permitted another well where we again have secured a 20% WI. In addition to this, the High Plains Prospect is moving forward. The planned well, where we also have a 20% WI, is permitted and the rig is being secured. As we continue to grow our portfolio, these larger WIs in wells could have a substantial impact on our future production levels and our cash flow."
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