Last checked at 11 Aug 2011 14:36
The following replaces the disposal announcement released at 0700hrs on 10 August 2011 under RNS number 0653M.
The full amended announcement is below:
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
200% return on sale of minority interest
11 August 2011
Nostra Terra Oil and Gas Company plc (AIM: NTOG), an oil and gas producer with projects in the USA, announces that it has disposed of its 2% interest in the Austin Chalk re-entry well in Lee County, Texas, which it acquired from Sherpa Energy Resources LP in June 2010.
The Company paid US$17,800 for its share of the re-entry costs and has now sold this share for US$18,600. The initial flow rates from the newly drilled horizontal section were above expectations, with the well achieving payout in just 35 days and generating total net revenues for the Company of more than US$34,000 over the period of ownership.
Matt Lofgran, CEO of Nostra Terra, said: "We were pleased to accept this offer which represents a return of approximately 200% on our original investment. More importantly, this was a small but very significant step in our growth strategy. It clearly demonstrates the tremendous potential to win profitable new oil from old fields within the US using the latest drilling and well completion techniques. We are now focusing on acquiring larger interests in such plays, like those recently completed in Colorado and Oklahoma, where our interests are 16.25% and 30% respectively.
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 and Corporate Limited
Andrew Raca / Toby Gibbs Telephone: +44 (0) 20 7408 4090
Alexander David Securities Ltd
David Scott / Bill Sharp Telephone: +44 (0)20 7448 9820
Lothbury Financial Services Limited
Gary Middleton / Michael Padley Telephone: +44 (0)20 7868 2010
Notes to Editors:
Nostra Terra Oil and Gas Company is fully funded for all its projects in the US where it is extracting new oil from old fields using new technology and drilling techniques.
States such as Oklahoma have recently been going through a new oil and gas boom with the Energy Information Administration of the US Department of Energy estimating that Oklahoma alone has proved oil reserves of 610 million barrels of oil and 14 trillion cubic feet of natural gas.
According to the Colorado Office of Economic Development and International Trade, gross production value of oil and gas produced in Colorado is steadily increasing, from $2.7 billion in 2002 to an estimated $8.2 billion in 2005. This increase is a result of significant growth in both production volume and commodity price. Gas and/or oil production occurs in over 65% of Colorado's 64 counties, making Colorado one of only seven states that are net gas exporters.
Nostra Terra's initial foray into the US is proving successful and paving the way for much larger deals as shown by the last two acquisitions in Colorado and Oklahoma announced in the last two months.