Last checked at 27 Jun 2012 07:00
Nostra Terra Oil and Gas Company plc
("Nostra Terra", "NTOG" or the "Company")
Verde - First well pays out in under a year, Second well underway soon.
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 it has signed a commitment with Plainsmen Partners LLC ("Plainsmen Partners") to drill a second development well in the Verde prospect
The Verde Prospect, in which Nostra Terra has a 16.25% interest, is operated by Plainsmen Partners LLC and covers approximately 636 net acres in south-eastern Colorado.
Matt Lofgran, Chief Executive of Nostra Terra, commented:
"I'm delighted by the performance of our first Verde discovery well which exceeded our initial expectations, producing just over US$1million gross in nine months. The second well is currently being permitted. Pad construction and drilling is anticipated to start around the end of Q3. 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."
Alden McCall, Chief Operating Office of Nostra Terra, added:
We have used the recently acquired data extracted from our first well in engineering, geology and 3D interpretations to de-risk further development wells. We expect that the second well will show similar results to the first well. Barring any unforeseen production stoppages, the first well is expected to reach payout by the end of July 2012, ten months from the date of first production.
The technical information within this announcement has been reviewed by Alden McCall, the Company's Chief Operating Officer, a Certified Petroleum Geologist and a member of the American Association of Petroleum Geologists and the Society of Petroleum Engineers.
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 9800
Lothbury Financial Services Limited
Gary Middleton / Michael Padley
Telephone: +44 (0)20 7868 2010
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 however, has ambitions beyond this to in order to add increasing shareholder value the next step is to originate it's own plays in-house. Nostra is currently working on plays where it will operate and control it's 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.
Full year revenues of £244,000 as announced in May of this year are expected to strongly improve in 2012.