Last checked at 18 Jul 2013 07:00
AIM: NTOG
18 July 2013
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Production at Fifth Chisholm Trail Well Exceeds Expectations at 448 boepd
Nostra Terra, the AIM quoted oil and gas producer with assets in the USA, is pleased to announce that the fifth horizontal well in the Chisholm Trail Prospect (CT5), located in Oklahoma, has exceeded the Board's expectations by a substantial margin, with the most recent ten days of production having averaged 448 barrels of oil equivalent per day (BOEPD). Nostra Terra owns a 2.2% working interest in this well.
New well permitting continues in the Chisholm Trail Prospect area. Once elections are received and made on further wells, the Company will make relevant announcements.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"The Chisholm Trail prospect continues to deliver, adding another 10 barrels per day to our aggregate production. The relatively shallow decline curve so far on the Chisholm Trail prospect continues and we see no reason to think this latest well will perform otherwise."
Alden McCall, Chief Operating Officer of Nostra Terra, added:
"The Horizontal Hunton Play is continuing, in our view, to fulfill the definition of a Resource Play. According to the Society of Petroleum Evaluation Engineers, a Resource Play is an "accumulation of hydrocarbons known to exist over a large areal expanse and believed to have a lower geological and/or commercial development risk". We are delighted to report that the most recent 10-day average at CT5 exceeds our expectations. Numerous new wells are in the planning stages with Ward Petroleum and other operators and we look forward to updating shareholders as they progress.
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
Shore Capital & Corporate Limited (Nominated Adviser)
Bidhi Bhoma / Toby Gibbs Telephone: +44 (0)20 7408 4090
XCAP Securities plc (Broker)
Jon Belliss Telephone: +44 (0)20 7101 7070
Lothbury Financial Services Limited
Gary Middleton / Michael Padley Telephone: +44 (0)20 3440 7620
Notes:
In September 2012, Nostra Terra entered into an agreement with Ward Petroleum for the Chisholm Trail Prospect, a multi-well horizontal drilling project in Oklahoma. The prospect area is large in size and a leasing programme is on-going. Nearby drilling has resulted in several wells that produce in excess of 200boepd after the first 30 days of "flush" production. Nostra Terra owns a 20% interest in this active programme with Ward Petroleum within which working interests in the individual wells vary. Nostra Terra also has varying working interests with other operators in the play. Based on results from neighbouring wells, we anticipate this prospect also has the potential to deliver rapid payouts with continued strong production levels.