Last checked at 19 Sep 2013 07:00
AIM:NTOG 19 September 2013
Nostra Terra Oil and Gas Company plc
("Nostra Terra", "NTOG" or the "Company")
Verde Update - Preparing for Completion of Verde #3
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 provide an update on the Verde Prospect, located in Colorado.The third well has reached total depth (TD), drilling has ended and completion operations are now underway.
Drilling in the primary pay zone was interrupted to perform two Drilling Stem Tests (DST). The second test resulted in free gas nearly reaching the surface and recovery of several hundred feet of liquids, a mixture of gas and oil, plus oil and gas cut drilling muds, the majority of which was oil. No free water was reported. Pressures increased moderately throughout the DST, indicating that the rate of formation fluids entering the pipe was rising. The decision has been made to run production pipe into the hole, cement it into place and complete the well. The drilling rig has now been released and completion operations will take place in the coming weeks.
Nostra Terra owns a 16.25% working interest in this program of development wells, but has recently increased its working interest in this well to 17.54%. The prospect is operated by Plainsmen Partners, LLC and is located in south-eastern Colorado.
Alden McCall, Chief Operating Officer of Nostra Terra, explained:
"A Drill Stem Test is a very useful procedure that is commonly used to determine the fluid content and fluid pressures within the rock formations encountered during drilling. The zone under evaluation is isolated from the rest of the hole which reduces the pressure vertically on the formation and allows fluids to enter the drill pipe. The fluids separate into gas, oil, water and drilling fluids which are then measured along with any pressure changes of the formation. We like to see gas and oil entry but water content of "low-to-none". We also look for increasing fluid pressure as an indication that the formation is "cleaning up". Decreasing pressure measurements would have indicated a limited reservoir or a "tight formation" and would have been less encouraging".
Nostra Terra will make further announcements as the operations progress. The Company will also provide additional updates shortly on progress in other areas of the portfolio.
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 to Editors:
Nostra Terra Oil and Gas Company has rapidly grown its portfolio of commercial wells in oil and gas producing states in the USA. From an initial foray into the state of Kansas in the USA back in 2009, the company has extended its reach to include Texas, Colorado, and, most recently, Oklahoma.
The initial step of Nostra's development plan was to buy into non-operated interests. The company has continued building on this concept by both investing in more prospects and progressively to include much larger stakes.
The company has ambitions beyond this to add greater shareholder value and the next step to that end is to originate its own plays in-house. Nostra is currently working on plays where it will operate and control its own destiny and pace of drilling, as announced in November of last year. The plays will be highly targeted through the integration of proprietary geological, geophysical and engineering interpretations.