Largest interest secured at Chisholm Trail

RNS Number : 2861A

Nostra Terra Oil & Gas Company PLC

18 February 2014

 



AIM: NTOG

18 February 2014

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Largest WI to date in Chisholm Trail Well

Nostra Terra, the AIM quoted oil and gas producer with a growing portfolio of producing assets in the USA, is pleased to announce its participation in another Chisholm Trail well, located in Oklahoma USA.

Nostra Terra has elected to participate in the Gant 1-22H (CT14), its 14^th well in the Chisholm Trail Prospect.  Pooling has been approved for a 640 acre unit. The pooling order is for the Hunton formation, but also includes the Mississippi and Woodford formations.  The initial well planned in the unit will be a horizontal well testing the Hunton formation. 

The current drilling plan calls for a total depth of 11,750 feet with a true vertical depth at approximately 7,150 feet and a lateral of approximately 4,000 feet in length. The estimated total well cost is US$4,218,000.

Nostra Terra has a 20% WI in the well (estimated cost of $843,600 to the Company) which is operated by Ward Petroleum Corporation. Drilling of the well is planned to take place during the first half of 2014.

Nostra Terra's net working interest in the unit will be 20% for any subsequent wells in the same unit.

Chisholm Trail Interests

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	2.92%	Producing	521
CT9	Mel B 1-33H	Hunton	Husky	7.375%	Putting into production	-
CT10	Katy 21-1H	Hunton	Gastar	1.875%	In planning	-
CT11	Bugg 1-25H	Hunton	Payne	3.55%	TD	-
CT12	Oswald 1-27H	Mississippian	Alta Mesa	0.80%	Permitting	-
CT13	Foster 31-1H	Hunton	Gastar	2.00%	Permitting	-
CT14	Gant 1-22H	Hunton	Ward	20.00%	Permitting	-

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.

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

"This is our largest participation to date in a well in the Chisholm Trail Prospect where the wells have all been excellent performers.

Nostra Terra will fund its participation in the well from the Company's recently secured US$25 million facility and free cash flow from existing production. While we're not dependant on any single well, our production from this well is expected to have a significant impact on our net production and cash flow. 

We're also happy to have such a large interest in a unit that allows for additional horizontal wells in at least two other formations.  This comes from targeting areas with stacked pay and provides potential upside for the future."

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]

Hume Capital Securities plc (Broker)                             

Jon Belliss                                                                  Telephone: [phone] 

Abigail Wayne

Lothbury Financial Services Limited

Gary Middleton / Michael Padley                            Telephone: [phone]

 

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