Last checked at 4 Mar 2011 12:00
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Vintage Hills Well Successful - Replacement
4 March 2011
The following replaces the 'Vintage Hills Well Successful' announcement released today at 09:30 a.m. under RNS number 3466C. As previously released the announcement contained a typographical error in relation to the citation of the units of the initial flow rates from the Agnello #1 well. The range in production from the 3-days of testing on the Agnello #1 well, previously stated as 'barrels of oil equivalent', is provided in barrels of oil equivalent per day ('boepd'). The remainder of the announcement is unchanged. The full amended text is shown below.
Nostra Terra Oil and Gas Company plc (AIM: NTOG) is pleased to announce the results of the Agnello #1 horizontal well in the Vintage Hills prospect unit. The Company has a 1.2% working interest (WI) before payout (BPO) (1.0% after payout (APO) in Vintage Hills, which is located within the established Giddings oil and gas field in Brazos County, Texas.
Initial flow tests from the target Austin Chalk formation, taken in 1-hour intervals, started on 26 February 2011. During the 3-days of testing the range in production was from 402 barrels of oil equivalent* per day ('boepd') to 139 boepd.
Flow tests confirm a well's producibility and provide some indication, though not definitive, of its likely production performance. Austin Chalk wells typically deliver rapid payout while having relatively steep decline curves, and Nostra Terra will provide an update on the well's ongoing productivity in due course.
The Agnello #1 well, operated by New Century Exploration, Inc., was drilled to a vertical depth of 10,400 feet followed by a horizontal section extending approximately 4,000 feet into the one of the Austin Chalk zones. Further lateral sections may be drilled in future into the other Austin Chalk zones, which are also known to be oil-bearing. , Additional pay zones have been logged from previous drilling within the Vintage Hills unit in the deeper Eagle Ford Shale, Buda and Georgetown formations.
This Vintage Hills prospect is Nostra Terra's second participation in an Austin Chalk well, following its acquisition of a 2% interest last year in a horizontal redevelopment well in Lee County, Texas, which achieved payout in just 35 days.
Matt Lofgran, CEO of Nostra Terra, said: "We are pleased that the Agnello #1 well has confirmed the presence of commercial oil and gas in the first zone we targeted within the Vintage Hills prospect, and by the initial flow rates which are in line with our expectations. The natural gas in this field sells at a premium to market rates which will also lead to a quicker payout."
He added: "The results give us further confidence as we pursue our basic strategy of winning new oil from old fields - through careful screening and prioritisation of projects, and through the use of leading-edge horizontal drilling techniques. We see opportunities to apply this strategy effectively and on a growing scale in other established sandstone and carbonate reservoirs."
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.
*Barrels of oil equivalent are calculated as 1 barrel of oil per 5,800 cubic feet of gas.
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
Religare Capital Markets
Peter Trevelyan-Clark/Ben Jeynes Telephone: +44 (0)20 7444 0800
Alexander David Securities Ltd
David Scott/Bill Sharp/Nick Bealer Telephone: +44 (0)20 7448 9820
Announcements made by the Company are available automatically by email to those who register at www.ntog.co.uk.