Last checked at 3 May 2022 07:00
3 May 2022
Nostra Terra Oil and Gas Company Plc
("Nostra Terra" or "the Company")
Permian Basin - Grant East #1 Well Spud
3 Wells Permitted
100% Interest Acquired
Nostra Terra (AIM: NTOG), the international oil & gas exploration and production company with a portfolio of production and development assets in Texas, USA, is pleased to announce that, further to the announcement of 14th April, the Grant East #1 well, in the Permian Basin, West Texas, spudded on 29th April 2022.
Nostra Terra has acquired a 100% working interest in the Grant East Lease. The Grant East #1 well is the first of three permitted locations to be drilled to date. Drilling is prognosed to reach a total depth of 3,500 feet and is anticipated to take approximately 7 days. The primary objective is the Clear Fork Formation with the secondary objective being the up-hole San Andres Formation, both of which are productive in offset wells.
Once drilling reaches total depth the well will be logged and evaluated. If successful, completion operations will commence immediately: these will be comprised of a fracture stimulation treatment followed by the installation of artificial lift equipment and then testing. Concurrently, a central production facility and tank battery will be constructed to handle both the Grant East # 1 production and any additional production established on the Grant East Lease. From spud to production start-up is anticipated to take between 30 and 45 days in the success case.
Matt Lofgran, Nostra Terra's Chief Executive Officer, said:
"This is a significant development for the Company. More than just the Grant East #1 well, we now have a 100% working interest in a prolific area with permits to drill up to 3 new wells in 2022. The Grant East Lease provides NTOG with a long-life, low-cost production opportunity with multiple drilling locations. Most importantly, like Grant East #1, all future wells are forecasted to be funded internally, without the need for further dilution."
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
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