Last checked at 28 Feb 2022 07:00
28 February 2022
Nostra Terra Oil and Gas Company Plc
("Nostra Terra" or "the Company")
Pine Mills - Fouke 2 Well successful - pay zone thicker & better quality than expected
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 the Fouke 2 well, at the Company's Pine Mills oil field in east Texas, has now reached total depth ("TD").
Highlights:
· Wireline logging successfully concluded
· Fouke 2 encountered 23 feet of excellent quality pay sand in two intervals, significantly exceeding management expectations
· The upper pay interval is 17 ft thick and located within the same reservoir horizon as the offset Fouke 1 but with a thicker, better quality (higher porosity) pay section that is located structurally higher.
· The lower pay section is 6 ft thick and situated in the Dexter interval of the Woodbine which was wet in the Fouke 1.
· Completion operations are currently underway.
Following the spud announcement on the 17th of February the Company is pleased to report that the well has now safely reached its planned TD of 6,002 ft, just below the Cretaceous Woodbine Formation.
Logs have indicated 23 ft of pay sand in two reservoir sections within the Cretaceous Woodbine sequence, the upper interval being within the same reservoir section as the offset Fouke 1 well. However, the Fouke 2 is located higher on structure and contains a reservoir interval that is both thicker and better quality than the Fouke 1. The Fouke 2 also encountered an additional pay section in the Woodbine Dexter interval which was found to be water bearing in the Fouke 1.
Completion operations have commenced and the well will be cased and cemented through both pay intervals. Following this the pay sections will be perforated, the completion equipment run in the hole and then the surface production equipment will be put in place. The well will then immediately start producing into the surface facilities at the Fouke 1 location, which have been expanded to handle the Fouke 2 volumes.
The impact of this well on oil in place and PUDs (additional proven locations) is currently under evaluation. An update will be provided to the market once this analysis has been concluded. Nostra Terra owns a 32.5% working interest ("WI") in the Fouke 2 well.
Matt Lofgran, Nostra Terra's Chief Executive Officer, said:
"We're very excited about the results of the Fouke 2 well. The Fouke 1 well reached payout (where the full cost of the well was recovered) in under a year. Logging results from this well are better than the Fouke 1 and also exceeded our pre-drill estimates. Given the higher commodity prices in today's market and the expected production rates from the Fouke 2, we anticipate an even more rapid payout for this well. We look forward to completing and producing the well in short order."
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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