Development Accelerates at Chisholm Trail

RNS Number : 8168R

Nostra Terra Oil & Gas Company PLC

31 October 2013

 



AIM: NTOG

31 October 2013

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Pace of Development Accelerates at Chisholm Trail 

Nostra Terra, the AIM quoted oil and gas producer with projects in the USA, is pleased to provide an update on progress in the Chisholm Trail Prospect.

CT6 (Tharp 2-26H)

Further to the announcement on 29 May 2013, Nostra Terra has elected to participate in its 6^th Hunton well in the prospect.  The well was originally spaced and permitted to test the Hunton formation.  However, Nostra Terra has received notice that the leases for this well have been combined with another, larger leasehold, to create a c. 1400-acre Mississippian drilling unit. As a result the original Hunton test has been delayed.  Nostra Terra will announce any changes to the Compay's Working Interest ("WI") in the well once a new election has been made. The well will be operated by Alta Mesa Holdings, L.P

CT7 (LSEPMU 7-3H)

The combined rights to test the Mississippian in CT7 have resulted in the first Mississippian test within the Chisholm Trail Prospect. Drilling proceeded smoothly and the well has reached total depth ("TD").  A multi-stage frac of the Mississippi formation was completed and production testing has begun.  Nostra Terra has a 1.6% WI in the well which is operated by Hinkle Oil and Gas, Inc.

CT8 (Jones 1-5H)

Nostra Terra has elected to participate in the 8^th well in the prospect (CT8).  Permitting is complete and drilling has commenced.  Nostra Terra has a 2.00% WI in the well which is operated by Stephens Production Company, LLC.

CT-9 (Mel B 1-33H)

Nostra Terra has elected to participate in the 9^th well in the prospect (its 8^th Hunton test). This well has been spudded and is drilling..  Nostra Terra has a 7.375% WI in the well which is operated by Husky Ventures, Inc.

CT10 (Unnamed 21-1H)

Nostra Terra has also elected to participate in the 10^th well in the prospect (CT10).  This well is still in the planning and permitting stage. The well is planned to be drilled to test the Hunton formation.  Nostra Terra has a 1.875% WI in its first well which is operated by Gastar Exploration USA, Inc.

Table 1- WIs are subject to change

Well	Well Name	Formation	Operator	Net WI	Status
CT6	Tharp 2-26H	Mississippian	Alta Mesa	TBD	On hold
CT7	LSEPMU 7-3H	Mississippian	Hinkle	1.60%	TD, production testing
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

As many as five additional wells are being planned and permitted by a number of operators in Chisholm Trail.  Nostra Terra will update shareholders of its participation in these wells once elections are made.

The development of the Chisholm Trail Prospect has been such that Nostra Terra now participates with multiple operators across 21 potential locations in the Hunton formation alone. Fourteen more possible half-sections remain to be drilled out of this total, targeting the same geological formation as Gastar Exploration Ltd. (NYSE: GST).  With the introduction of new wells being drilled to test the Mississippi formation this has the potential to double the number of the wells targeted in the prospect.

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

"The first 5 Chisholm Trail wells have consistently outperformed management's original expectations. The 10^th well, operated by Gastar, now represents the fifth different operator we're engaged with in the play, further diversifying our portfolio. 

We're very excited to see that the existing prospect has been de-risked through successful and consistent well outcomes, and are seeing another formation being tested that could potentially double the number of wells within the prospect.

We're pleased to see activity picking up again, where we now have multiple wells in various stages of planning, drilling, and producing." 

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 (Broker)                             

Jon Belliss                                                                   Telephone: [phone] 

Lothbury Financial Services Limited

Gary Middleton / Michael Padley                                 Telephone: [phone]

Notes:

Nostra Terra has a number of oil projects in the Mid-Continent USA, spanning exploration to production. The company uses the latest technology to bring new oil out of existing fields using either horizontal or vertical drilling. 

The Chisholm Trail Prospect (in Oklahoma) is currently producing and drilling new horizontal wells in the Hunton formation which has been the company's biggest producer to date.  The Mississippian Play intersects the prospect, where a new test well is now being drilled. The prospect is operated by Ward Petroleum where Nostra Terra owns a 20% of the Ward Petroleum interest.  Due to forced pooling laws and the competitive area, actual working interest (WI) in each well does vary, and actual operations will be performed by different operators.

 

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