Last checked at 24 Jan 2018 07:00
24 January 2018
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Permitting for 3 New Wells
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 announce the acceleration of its plans for developing its assets in the Permian Basin.
On 27 December 2017, Nostra Terra announced its intention to initiate the permitting process for a new well at one of the Company's 24 drill-ready locations across its Permian acreage. However, with legal completion of the new Senior Lending Facility expected to take place before the end of January 2018 (as announced on 8 January 2018), which provides the Company with immediate access to US$1.2 million of funding, the Board has now decided to increase the number of permits it applies for from one to three.
The increase in the number of permitted drilling locations would enable Nostra Terra to drill new wells in quicker succession. The Company intends to review various options in this respect, including the possibility of securing a drilling rig beyond the initial well. Such an approach could have the benefit of reducing the overall costs of drilling the individual wells by spreading certain fixed expenses.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"Confirmation of the new Senior Lending Facility could prove to be a catalyst for exciting growth for Nostra Terra. We are an ambitious and nimble company. Our strategy over the last 18 months has been to take advantage of depressed oil prices, by securing assets that are both economic at lower oil prices and provide further development and exploration upside. As previously announced, we estimate our assets in the Permian Basin to have a 2:1 ROI at $40 oil. At higher oil prices we couldn't be more excited to drill."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information, visit www.ntog.co.uk or contact:
Nostra Terra Oil and Gas Company plc Matt Lofgran, CEO
| Tel: | +1 480 993 8933 |
Strand Hanson Limited (Nominated & Financial Adviser and Joint Broker) Rory Murphy / Ritchie Balmer / Jack Botros
| Tel: | +44 (0) 20 7409 3494 |
Smaller Company Capital Limited (Joint Broker) Rupert Williams / Jeremy Woodgate | Tel: | +44 (0) 20 3651 2910 |