7th Chisholm Well in Production

RNS Number : 2956S

Nostra Terra Oil & Gas Company PLC

06 November 2013

 



AIM: NTOG

06 November 2013

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Seventh Chisholm Trail Well Producing 194 Boepd

Nostra Terra, the AIM quoted oil and gas producer with projects in the USA, is pleased to announce its seventh well in the Chisholm Trail Prospect, LSEPMU 7-3H (CT7) has produced an average 194 Boepd from the Mississippian Lime Formation, over a 10-day period, following initial production testing. The company owns a net Working Interest of approximately 1.6% in this well, which is operated by Hinkle Oil and Gas, Inc.

The Mississippian Lime Play has been widely exploited in other parts of Northern Oklahoma and Southern Kansas. Current activity stretches from Harper County, Oklahoma, to the West to Osage County, Oklahoma, to the East and from Kingfisher County to the South, to beyond Sumner County, Kansas, to the North.

Table 1- WIs are subject to change

Well	Well Name	Formation	Operator	Net WI	Status	Initial Production (Boepd)
CT6	Tharp 2-26H	Mississippian	Alta Mesa	TBD	On hold	-
CT7	LSEPMU 7-3H	Mississippian	Hinkle	1.60%	Producing	194
CT8	Jones 1-5H	Hunton	Stephens	2.00%	Drilling	-
CT9	Mel B 1-33H	Hunton	Husky	7.375%	Drilling	-
CT10	(Unnamed)	Hunton	Gastar	1.875%	In planning	-

Alden McCall, Chief Operating Officer of Nostra Terra, commented:

"The well was drilled to a total vertical depth of 6,000 feet to initiate drilling the curve to a horizontal profile. We completed the curve and reached a total measured depth of 11,840 feet. The CT7 well marks our first test of the Mississippian formation (overlying the Hunton) in this play and underscores the multiplier effect of stacked pay zones. Future Mississippian wells could be drilled from the same pads as the Hunton wells, which would save a significant amount of capital. Although the well tested within the range of our expectations for the Hunton, future Mississippian wells will have the benefit of the learning curve from this completion as well as those of other operators."

For further information, visit www.ntog.co.uk or contact:

Nostra Terra Oil and Gas Company plc

Matt Lofgran, CEO

[e-mail]                                                       Telephone: [phone]

Shore Capital & Corporate Limited (Nominated Adviser) 

Bidhi Bhoma/ Toby Gibbs                                                 Telephone: [phone]

XCAP Securities plc (Joint Broker)                            

Jon Belliss                                                                         Telephone: [phone] 

Lothbury Financial Services Limited

Gary Middleton / Michael Padley                                       Telephone: [phone]

Notes to Editors:

The Mississipian formation is characterised by shallow, low-cost wells that deliver reasonably impressive, primarily liquid production rates. It has been described as an incredibly varied, complex carbonate reservoir with comparatively high porosities and, owing to its Woodford Shale source rock, ample stacked-pay potential.

Compared to the Bakken, where wells can cost upwards of $11 million to drill and frac, Mississippi Lime wells rarely exceed $3.5 million from spud to completion. For Oklahoma operators, Mississippian wells also represent quite a hometown bargain, compared to the $9.5 million to $10 million it costs to drill an average Cana Woodford well to the southwest, although the latter's typical production rates also are appreciably higher.

Source World Oil.

 

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