Last checked at 17 Sep 2012 07:00
AIM: NTOG
17 September 2012
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Verde Prospect - Second Well Spudded
Nostra Terra, the AIM quoted oil and gas producer, with a growing portfolio of horizontal and vertical drilling projects in the USA, is pleased to announce that drilling has begun on the second development well in the Verde Prospect, located in Colorado.
This is the second well in the prospect where the first well reached payout in 9-months. The development well will be drilled to a depth of approximately 5300 feet. Drilling of the well is expected to take approximately 30-days followed by completion and initial production testing.
Nostra Terra owns a 16.25% working interest in this program of development wells. The prospect is operated by Plainsmen Partners LLC and covers approximately 636 net acres in south-eastern Colorado.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"Our initial well has already reached payout and continues to be a good producer. We're pleased to be drilling the second well in the prospect where we anticipate similar results. Each of our projects has been chosen because each offers further locations for subsequent, lowered-risk development wells. This should add to our growing portfolio of producing wells."
Nostra Terra will make further announcements as the operations 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
Alexander David Securities Ltd
David Scott / Bill Sharp Telephone: +44 (0)20 7448 9812
Lothbury Financial Services Limited
Gary Middleton / Michael Padley Telephone: +44 (0)20 7868 2010
Notes:
The latest information from the US Energy Information Administration states that US oil reserves grew by 13% to 25.2 billion barrels and projecting that Colorado's oil reserves from 2007 to 2012 have grown by 64% with monthly production at its highest level for over 30 years at around 3.9 million barrels a month. It also states that Oklahoma's production is at its highest level for 15 years at over 7million barrels of oil per month.
Nostra Terra has a portfolio of assets, both producing and being developed, in Kansas, Texas, Colorado, and Oklahoma. In addition to the producing wells, there are currently four wells being drilled and/or completed and tested across the portfolio.