Last checked at 26 Feb 2016 11:03
AIM:NTOG 26 February 2016
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Wyoming Prospect Update
Nostra Terra (AIM:NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, is pleased to provide an update on the Paw Paw prospect in Wyoming.
In December we announced the approval of an Exploratory Unit by the Bureau of Land Management, which creates numerous benefits such as a single commercial well which perpetuates all leases within the entire Unit, as well as allowing us to operate multiple leases as a single lease under a single operator.
The permitting process is underway and anticipated to be complete within weeks. An extension to drill the Paw Paw Prospect has been agreed by Koch Exploration, Inc. The extension to the agreement allows NTOG an additional several months to spud. It is also possible that the Bureau of Land Management ("BLM") will delay the drilling deadline even further due to the current wildlife protection measures. Should that occur, the deadline to drill could be extended beyond the summer of this year, thus allowing further time for the oil prices to stabilize.
The prospect is located in Big Horn County, Wyoming and could hold as much as 7.3 million barrels of producible oil, per Haas Engineering (3rd-party reservoir engineer). Of that total, NTOG would own as much as 5.84 million net barrels in probable and potential reserves, under the terms of the agreement.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"While our focus is on increasing cash flow and proven reserves such as the recent expansion into the Permian Basin, the Paw Paw prospect is a very attractive prospect, which could add significant reserves for relatively low cost.
We've previously stated that we plan to bring in other industry partners to finance the initial exploration well while we operate and keep a carried working interest. This extension and the possible future extensions allows us to increase further exposure to upside with minimum capital exposure for our shareholders."
For further information, visit www.ntog.co.uk or contact:
Nostra Terra Oil and Gas Company plc
Matt Lofgran, CEO Telephone: +1 480 993 8933
mlofgran@ntog.co.uk
Sanlam Securities UK Limited
(Nominated adviser and broker)
Simon Clements / James Thomas Telephone: +44 20 7628 2200
Walbrook PR
Gary Middleton / Nick Rome Telephone: +44 207 933 8797