Last checked at 16 Oct 2014 07:00
AIM: NTOG
16 October 2014
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Further Production Added at Chisholm Trail
Nostra Terra, the AIM quoted oil and gas producer with a growing portfolio of producing assets in the USA, is pleased to provide an update on activity in the Chisholm Trail Prospect, located in Oklahoma.
CT-17
The Willson 3-8-5H well (CT-17) has been completed and is now producing. The most recent ten days of production at CT-17 averaged 440 barrels of oil equivalent per day (BOEPD). The well was drilled to a True Vertical Depth (TVD) of approximately 6,500 feet and a Total Measure Depth (TMD) of 11,770 with a 4,200 foot lateral into the Hunton formation. The production rates exceeded management's expectations. Nostra Terra owns a 2.92% Working Interest ("WI") in the well, which is operated by Stephens Production Company.
CT-14
The CT-14 (Gant 1-22H) well has also been completed and has begun flowing back frac fluid, oil, and gas. Although the well is producing oil and gas, it is yet to reach peak levels. The well was drilled to a true vertical depth of 7,150 feet and a TMD of 11,750 feet, with a 4,000 foot lateral in the Hunton formation. The well has been producing more formation water relative to the volume of hydrocarbons than average wells in the play. The operator believes the water is coming from a large natural fracture near the end of the approximately 4,000 foot lateral section and is preparing to control the flow by setting a bridge plug to close off the very end of the well. Cost of the operation is estimated to be no more than $40,000 to Nostra Terra and planned to take place in the coming weeks. The Company will update on progress as it occurs. Nostra Terra has a 20.0% WI in this well, the largest in our Chisholm Trail portfolio, operated by Ward Petroleum.
CT-18
Nostra Terra has elected to participate in the Chesapeake Anderson 21-18-6 3H (CT-18), its 18th well in the Chisholm Trail Prospect. Pooling has been approved for a 640 acre unit within the Oswego and Big Lime formations. The initial horizontal well will be test the Oswego formation. The current drilling plan calls for a total measured depth (TMD) of approximately 11,250 feet with a true vertical depth (TVD) at approximately 6,465 feet and a lateral of approximately 4,340 feet in length. The estimated total well cost is $4,419,000. Nostra Terra has a 1.875% WI in the well (approx. $82,875 net to the Company) which is operated by Chesapeake Energy. Drilling of the well is planned to take place before the end of the year. The prospect has been successfully drilled in the Hunton and Mississippian formations, and, if successful, CT-18 could help establish a third horizontal play within the prospect.
Chisholm Trail - Currently elected wells
Well | Well Name | Formation | Operator | Net WI | Status | Initial Production (Boepd) |
CT1 | Rigdon 1-36H | Hunton | Husky | 0.47% | Producing | 258 |
CT2 | Niemyer 1-11H | Hunton | Payne | 0.16% | Producing | 555 |
CT3 | Gant 1-27H | Hunton | Ward | 12.58% | Producing | 348/471* |
CT4 | Kathy-James 1-35H | Hunton | Husky | 5.31% | Producing | 505 |
CT5 | Kirtley 1-34H | Hunton | Husky | 2.20% | Producing | 448 |
CT6 | Tharp 2-26H | Mississippian | Alta Mesa | TBD | On hold | - |
CT7 | LSEPMU 7-3H | Mississippian | Hinkle | 1.60% |
Producing | 194 |
CT8 | Jones 1-5H | Hunton | Stephens | 2.00% | Producing | 521 |
CT9 | Mel B 1-33H | Hunton | Husky | 7.37% | Producing |
387 |
CT10 | Katy 21-1H | Hunton | Gastar | 1.87% | In planning
| - |
CT11 | Bugg 1-5H | Hunton | Payne | 3.53% | Producing | 110 |
CT12 | Oswald 1-27H | Mississippian | Alta Mesa | 1.59% |
Permitting | - |
CT13 | Foster 31-1H | Hunton | Gastar | 2.00% | Permitting | - |
CT14 | Gant 1-22H | Hunton | Ward | 20.00% | Producing (rework planned) | (TBD) |
CT15 | Curly | Hunton | Ward | 11.62% | Producing | 232 |
CT16 | Bollenbach 1-33H | Hunton | Ward | 20.00% | Permitted | - |
CT17 | Willson 3-8-5H | Hunton | Stephens | 2.92% | Producing | 440 |
CT18 | Anderson 1-21H | Oswego | Chesapeake | 1.87% | Permitting | - |
*New increased level following rework.
Additional wells continue to be planned and permitted by a number of operators in Chisholm Trail and Nostra Terra will update shareholders of its participation in these wells once elections are made.
High Plains Prospect
The Company has been informed by the operator that, due to permitting issues at the High Plains Prospect, which have now been resolved, spudding of the first exploration well on the prospect is now expected by the end of the year.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"We're very happy with the progress at Chisholm Trail. Another well is performing in excess of original projections and we are seeing another potential dimension added with a third formation being drilled by Chesapeake, one of the largest independent oil and gas companies in the United States.
"It's been two years since the first wells began drilling in the prospect. We've elected to participate in 18 wells with 8 different operators, and now in 3 different formations. Of the 18 wells 11 have already been drilled (with more being planned) and all are commercial producers, with the vast majority surpassing management's expectations.
Following an inexpensive rework CT-3 production performed at more than twice management's expectations. The Hunton formation within the area has proven to be a resource play, where repeatable results are found. As a result we're encouraged by the planned rework of CT-14 in the near future, where we have a 20% working interest."
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
Northland Capital Partners Ltd
(Nominated Adviser)
Matthew Johnson / Lauren Kettle Telephone: +44 (0)20 7382 1100
Hume Capital Securities plc (Broker)
Jon Belliss / Abigail Wayne Telephone: +44 (0)20 3693 1470
Lothbury Financial Services Limited
Gary Middleton / Michael Padley Telephone: +44 (0)20 3440 7620