Last checked at 17 Jun 2014 07:00
AIM: NTOG
17 June 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 announce results from two additional horizontal wells in the Chisholm Trail Prospect, located in Oklahoma.
Highlights
· The most recent ten days of production at CT15 in which Nostra Terra has an 11.62% working interest averaged 232 barrels of oil equivalent per day (BOEPD) (72% oil)
· Most recent ten days of production at CT11, averaged 110 barrels of oil equivalent per day BOEPD (54% oil)
· Estimated current revenues due to Nostra Terra from the two wells combined are over $45,000 a month (net of royalties)
· The CT14 well, which at 20.0% is Nostra Terra's largest Working Interest, has been completed and has begun flowing back frac fluid, oil and gas
CT15 (Curly 1-26H)
The CT15 (Curly 1-26H) well was drilled to a True Vertical Depth (TVD) of approximately 7,120 feet and a Total Measure Depth (TMD) of 11,770 with a 4,323 foot lateral into the Hunton formation. Production rates exceeded management's expectations. Nostra Terra owns an 11.62% Working Interest ("WI") in the well, the third largest in our Chisholm Trail portfolio. Operations are being transferred to Ward Petroleum from Husky Ventures.
CT11 (Bugg 1-25H)
The CT11 (Bugg 1-25H) well was drilled to a TVD of 7,066 feet and a TMD of 11,714 feet, with a 4,949 foot lateral in the Hunton formation. Although still a commercial well, the initial production rates are below management's expectations. During flowback (recovering frac fluid) and production, blockage of the wellbore similar to CT3 was encountered. The operator may decide to do additional cleanup work to increase production. Nostra Terra holds a 3.55% Working Interest ("WI") in this well, which is operated by Payne Exploration.
CT14 (Gant 1-22H)
The CT14 (Gant 1-22H) well has been completed and has begun flowing back frac fluid, oil and gas. 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. Once stabilised production rates have been reached, they will be announced. Nostra Terra has a 20.0% Working Interest ("WI") in this well operated by Ward Petroleum, the largest in its Chisholm Trail portfolio.
Additional wells continue to be planned and permitted by a number of operators in Chisholm Trail. Nostra Terra will update shareholders of its participation in these wells once elections are made.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"Production from CT15 and CT11 is expected to add another $45,000 a month to the Company's income and we look forward to results from CT14, where we have a 20% working interest, our largest to date in this prospect.
"With the repeated success in this prospect we will continue to participate in additional wells as proposals are made. We plan to issue an update on CT14 production in the near future and the acquisition of other assets when available."
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