Bale Creek -Pilot Well Drilling & Logging Complete

RNS Number : 5829Z

Nostra Terra Oil & Gas Company PLC

19 March 2012

 

AIM: NTOG

19 March 2012

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Bale Creek - Pilot Well Drilling and Logging Complete

Nostra Terra, the AIM oil and gas producer concentrating on a variety of horizontal drilling projects in the USA, is pleased to announce that drilling has been completed on its initial vertical pilot well in the Bale Creek prospect, located in Oklahoma.  Nostra Terra has a 30% working interest in the Bale Creek prospect and all wells.

Hydrocarbons have been confirmed in multiple pay zones, as anticipated, and the most attractive of the several zones has been identified. The first horizontal well will be drilled in this promising formation.

Following the drilling of the initial vertical pilot well, a full suite of logs was run to thoroughly evaluate the potential productivity of each of several zones. Additionally, a sophisticated sonic log was run. It will enable the creation a synthetic seismogram to further calibrate the proprietary 3-D seismic, previously shot.  As a result the operator will be better able to steer and avoid geo-hazards in each of the horizontal wells to be drilled in the prospect.

A large enough drilling pad was built for both the pilot well and the first horizontal well in the prospect.  With the pilot well now finished and evaluated, the rig is being mobilized to drill the first horizontal well.

Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:

"I am pleased to announce that our inaugural drilling in Oklahoma has confirmed several pay zones at the Bale Creek project. Our next step is to commence drilling the horizontal well, which will follow swiftly. This is the company's first of several prospects in Oklahoma. We are very excited about our future activities in the State going forward. These will include the Bale Creek and Warrior Prospects, as well as the execution of our own play, all in Oklahoma.

Alden McCall, Chief Operating Officer of Nostra Terra added:

"We are set on the course of drilling where we can simultaneously reduce exploration risk and maximize recovery through the application of horizontal drilling and completions. To reach this goal, we are focused on those areas where outstanding results to vertical exploration were repeatedly found. Several parts of Oklahoma are rich in the characteristics that can be readily leveraged to our advantage. There a many oil and liquids-rich gas reservoirs that are stacked one-upon-the-other, a fertile database of geologic and engineering data, a constructive regulatory environment and readily available oil field services. Participation in multiple programs with other operators also bolsters our independent efforts to acquire and/or internally develop plays."

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.

Nostra Terra will make further announcements on Bale Creek as the operations progress.

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]

Alexander David Securities Ltd

David Scott / Bill Sharp                                                     Telephone: [phone]

Lothbury Financial Services Limited

Gary Middleton / Michael Padley                                       Telephone: [phone]

Notes:

Highlights of the Bale Creek prospect include:

·     Shallow oil, with associated liquids-rich natural gas

·     Extensive well control to create regional structural mapping

·     Multi-pay potential from as many as 8 reservoirs, from the Ordovician up through Permian-aged rocks

·     2-D and 3D Seismic to pinpoint locations and steer the horizontal well paths;

·     The Bale Creek area covers a contiguous area of over 3,500 acres and is located in a very prolific oil system

·     Up to seven potential horizontal well locations have been identified.

Nostra Terra owns a 30% WI in the Bale Creek prospect, operated by Pathfinder Development Capital, LLC.

Nostra Terra has acquired a 10% working interest in the Warrior Prospect, operated by Crown Energy Company, in January 2012. It is another horizontal oil prospect with multi pay potential from as many as eight reservoirs.

In November Nostra Terra revealed that it had commenced the evaluation and development of its own plays within an established hydrocarbon region in Oklahoma and where it will could control up to 100% of company-generated projects.

Announcements made by the Company are available automatically by email to those who register at www.ntog.co.uk.

 

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