Nostra Terra Regulatory News (NTOG)

3 Apr 2008 07:00

Nostra Terra Oil & Gas Company PLC03 April 2008 NTOG.L Nostra Terra Oil and Gas Company plc ("NTOG" or the "Company") www.ntog.co.uk Second Well successfully opened Nostra Terra Oil and Gas plc is very pleased to announce that, following itssuccessful reopening of Well #1 within the Neocomian reservoir of theOktyabrskoe oil field, it has now successfully re-opened Well # 24 within theCenomanian reservoir with positive results. This is a significant developmentfor the Company as it highlights the potential for oil production within bothreservoirs in the region and follows a Competent Person's Report which provideda present worth estimate as of 28 February 2007 of possible developed oil andgas reserves of the Company at $19 million at a 10% discount. At the start of the reopening process, Well #24 was re-opened to a total depthof 1,784 metres with all cement bridge plugs removed in the process. Oil andwater horizons were encountered as recorded in the historic well logs. The well casing extends to 1,685 metres and wire logging tests were conducted onthe open hole target zone between 1,685 metres and 1,784 metres. The geophysicalresults confirmed a previously recorded pay zone from 1,750 to 1,755 metres andindicated a second previously unknown pay zone from 1,743 to 1,748 metres. The bore hole was cleaned and isolation packers were set at 1,630 metres toisolate oil and water observed from above the target zone. The well was opened on Friday 14 March 2008 by dropping the tubing hydrostaticpressure. Well # 24 began producing gas, gas-condensate, oil and minor amountsof water. These products, in line with good environmental practices, were flaredinto a flare pit. In the following ten days the well produced oil and water in free flow with acontinuous decline in the water until the well was producing oil and some waterin intermittent flows every two hours. The well-bore was subsequently cleanedagain to remove debris from the tubing with a bottom hole pressure close tohydrostatic. The fluid level was calculated to be at approximately 584 metresbelow the surface (1200 metres above the bottom of the open hole), consistentwith historic records. NTOG's staff in the Ukraine in conjunction with its partner NAK NadraKrymgeologia will conduct bottom hole pressure surveys and swabbing tests todetermine the optimum arrangement of pumping equipment and commence the Stateapproval process to put the well into production. This information has been reviewed and approved by Mr. Stephen C. Trimble B.Sc,P.Eng., APEGGA, SPE, CIM. Mr. Trimble is the president of Trimble EngineeringAssociates Ltd., which specialises in oil and gas evaluations. Brian Courtney, Chief Executive Officer, commented: "I am delighted with this news which underpins the success of our strategy toreopen certain wells within the Oktyabrskoe region which were previouslyproducing oil. I expect steady progress and look forward to reporting furthergood news in due course". Oleg Rodkin, NTOG's Field Operations Manager, commented: " I am very pleased with the initial results from well #24 and I am confident itwill meet or exceed its production targets" For further information, please contact: Nostra Terra Oil and Gas Company plc Brian Courtney 001-905-842-8543www.ntog.co.uk Chief Executive bcourtney@ntog.co.uk Officer Stephen Oakes +44 (0) 7867 528 108 Non-executive Director Blomfield Corporate Finance Limited Alan MacKenzie +44 (0)20 7512 0191 Nick Harriss Biddicks Shane Dolan +44 (0)20 7448 1000 About NTOG www.ntog.co.uk NTOG is an oil production company listed on the London Stock Exchange (AIM): RICcode NTOG.L The Company was created to reopen previously oil producing wells within theUkraine's Oktyabrskoe oil field under licence via a Joint Activity Agreementwith NAK Nadra Krymgeologia, a subsidiary of NAK Nadra Ukrainiy, a state ownedUkrainian geological company. NTOG retains 88% interest before payout and a 60%interest after pay out. The Oktyabrskoe licence area contains 36 wells; the Company's strategy is toopen five wells initially and then assess subsequent opportunities. This information is provided by RNS The company news service from the London Stock Exchange