Last checked at 19 Sep 2011 07:00
AIM: NTOG
19 September 2011
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Operations Update - Vintage Hills and Verde
Nostra Terra, the AIM-listed oil and gas producer with assets in the USA, is pleased to announce the results of the Agnello #1 horizontal well in the Vintage Hills Prospect Unit. The Company has a 1% working interest in Vintage Hills, which is located within the established Giddings oil and gas field in Brazos County, Texas.
During the initial 30-days of production, the well produced an average rate of 59 boed (barrel of oil equivalent per day gross), with 35% of production being oil. This period included several days when the well was not producing due to equipment delays. The well has been producing an average rate of 87 boed over the last two days, with 43% of production being oil.
The initial well on the Verde prospect is in the final stages of completion. Construction of production facilities has been completed and the pumping unit is being installed. Production is expected to commence within days and the Company will provide 30-day production figures when available.
Matt Lofgran, Chief Executive of Nostra Terra, commented:
"We are happy to continue to add production and income to our growing portfolio of established oil and gas fields in the US. As we have stated in recent announcements, our focus has been increasingly on larger deals that will have a far greater impact on our income generation. To this end, we are targeting additional acreage and higher working interests with a view to increasing both the size of the company and its revenues."
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 and Corporate Limited
Bidhi Bhoma / Toby Gibbs Telephone: +44 (0) 20 7408 4090
Alexander David Securities Ltd
David Scott / Bill Sharp Telephone: +44 (0)20 7448 9820
Lothbury Financial Services Limited
Gary Middleton Telephone: +44 (0)20 7868 2010
Notes to Editors:
Nostra Terra Oil and Gas Company is fully funded for all its projects in the US where it is extracting new oil from old fields using new technology and drilling techniques.
Earlier this month Nostra Terra announced an attractively priced standby equity distribution agreement for an initial £5m with an option to increase to £10m at any time during the agreed period. The company continues to see numerous opportunities for it to grow its asset base and while most of these are within its existing resources, the Board has ensured that it has the capability to enter negotiations with potential partners in the best position.
The Agnello #1 well, operated by New Century Exploration, Inc., was drilled into one of the Austin Chalk zones. Further lateral sections may be drilled in future into the other Austin Chalk zones, which are also known to be oil-bearing. Additional possible pay zones have been logged from previous drilling within the Vintage Hills unit in the deeper Eagle Ford Shale, Buda and Georgetown formations.
NTOG has a 16.25% working interest (WI) in the Verde prospect. Following evaluation of testing and potential production of the initial well, two or three further development wells (PUDs) could be drilled, in which Nostra Terra also has the right to participate.