Drilling Report

RNS Number : 9236Q

Nostra Terra Oil & Gas Company PLC

27 October 2011

 



AIM: NTOG

27 October 2011

Nostra Terra Oil and Gas Company plc

 ("Nostra Terra" or the "Company")

Verde well producing above expectations

Nostra Terra, the AIM-listed oil and gas producer with assets in the USA, is pleased to announce the results of the initial well in the Verde Prospect Unit, which covers 636 acres in south-eastern Colorado and in which the Company has a 16.25% working interest.

During the initial 30 days of production, the well produced an average rate of 64 bopd (barrel of oil per day gross), with 100% of production being oil.

Once a minimum of 6 months production has been established, this initial well, together with potential off-set locations will allow the Company to post an increase in its aggregate reserves.

 Matt Lofgran, Chief Executive of Nostra Terra, commented:

"I am delighted with the progress at the Verde Prospect. This first well has de-risked the leases, thus creating value for the entire prospect. The well is demonstrating a relatively shallow decline curve, and along with production rates, is performing above our expectations.  

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

[e-mail]                                                             Telephone: [phone]

Shore Capital and Corporate Limited (Nomad)

Bidhi Bhoma / Toby Gibbs                                                      Telephone: [phone]

Alexander David Securities Ltd

David Scott / Bill Sharp                                                           Telephone: [phone]

Lothbury Financial Services Limited

Gary Middleton                                                                        Telephone: [phone]

Notes to Editors:

Nostra Terra Oil and Gas Company is fully funded for all its projects in the US where it is extracting new oil from old fields using new technology and drilling techniques.

In September, Nostra Terra announced an attractively priced standby equity distribution agreement for an initial £5m with an option to increase to £10m at any time during the agreed period. The company continues to see numerous opportunities for it to grow its asset base and while most of these are within its existing resources, the Board has ensured that it has the capability to enter negotiations with potential partners in the best position.

Following evaluation of testing and potential production of the initial well at the Verde Prospect, two or three further development wells (PUDs) could be drilled, in which Nostra Terra also has the right to participate.

 

END

 

 

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