Last checked at 9 Dec 2014 07:00
AIM: NTOG
9 December 2014
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Nostra Terra Achieves Record Production
Nostra Terra (AIM:NTOG), the oil and gas exploration and production company with a growing portfolio of assets in the USA, is pleased to announce that its 13th production well in the Chisholm Trail Prospect, Bollenbach 1-33H (CT16), has produced an average 555 Boepd from the Hunton Formation, over the most recent 10-day period of production. The Company owns a 20% working interest in this well (equivalent to 87 boepd net), which is operated by Stephens Production Company.
The CT16 well was drilled to an approximate 11,700 foot measured depth, and a true vertical depth ("TVD") of 7,180 feet, with an approximate 4,200 foot lateral into the Hunton formation. The well was drilled and completed under budget.
As announced on 30 October 2014, September net production averaged 84 boepd. CT16 is one of the best performing wells in Nostra Terra's Chisolm Trail Prospect and following the addition of its two most recent wells (CT16, together with CT14) Nostra Terra's net production has now more than doubled.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"I'm pleased to announce further strong production news from the Chisholm Trail prospect in Oklahoma, especially where we have such a large percentage working interest. Chisholm Trail has helped build the foundation of the Company's portfolio, recording the highest number of producing wells in our prospects. The additional production announced today is all free cash flow and we anticipate this well will also have a relatively rapid payback.
"We have focused our existing portfolio of producing wells on conventional reservoirs that offer a lower cost of production, especially compared to the unconventional (shale) plays. Over recent weeks, Nostra Terra's net production has more than doubled and , despite the recent decrease in crude oil prices, we have increased our revenue significantly.
"In the last Quarterly Operations Update we announced that we were cash flow positive. We expect to remain cash flow positive at our Chisolm Trail operations even if oil prices were to drop below $50 per barrel."
Glossary
`boe' means barrels of oil equivalent: a unit of energy based on the approximate energy released by burning one barrel (42 US gallons or 158.9873 litres) of crude oil.
`boepd' means barrels of oil equivalent per day
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