Warrior - Horizontal Well Spudded

RNS Number : 7377Z

Nostra Terra Oil & Gas Company PLC

21 March 2012

 

AIM: NTOG

21 March 2012

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Warrior - Horizontal Well Spudded

Nostra Terra, the AIM oil and gas producer with projects in the USA, is pleased to announce drilling has begun on the first horizontal well in the Warrior prospect, located in Oklahoma.  The Company has a 10% working interest in the Warrior prospect, which is operated by Crown Energy Company Inc. ("Crown Energy").

Crown Energy and its subsidiary, Basin Engineering, LLC, have a long and successful track record in acquisition, drilling, exploration and production, both for their own accounts and for their many clients. They are concentrated largely in the Mid-Continental United States but provide services and operations throughout the United States, Gulf of Mexico and several international locations.

The well is the first of six potential horizontal well locations on the prospect.  Drilling of the well is expected to be completed in approximately 30-days, followed by completion and initial production testing. 

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

"The first horizontal well on Warrior has spudded much earlier than originally planned and our drilling program remains on track.  Our primary focus this year is to increase the amount of production wells, and continue our long term strategic plan to generate and operate prospects internally, with a focus on building reserves and net production to the Company."

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

"We value working with Crown Energy on this initial investment and on future opportunities, as they present themselves. They have excellent operational skills and an outstanding reputation. The working interest is drilling a vertical hole to within 500 feet of the target zone and will then start building the curve for the horizontal segment of well. Throughout this process, directional drilling tools will be steered utilizing interpretations made by the on-site mud-logger and geologist until the final decision is made to stop drilling and complete the well. In this way, we will place several thousand feet of production casing entirely within the target formation."

Nostra Terra will make further announcements 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 Warrior prospect include:

·     Shallow oil, with associated liquids-rich natural gas

·     Extensive regional structural mapping

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

·     Six potential horizontal well locations have been identified.

Additional animated references are provided by the Oklahoma Energy Resources Board, an agency of the State of Oklahoma:

Seismic Survey Animation Link: http://www.oerb.com/Default.aspx?tabid=274 

Multi-stage Drilling Animation Link: http://www.oerb.com/Default.aspx?tabid=286 

Horizontal Drilling Animation Link: http://www.oerb.com/Default.aspx?tabid=242

Well Frac Animation Link: http://www.oerb.com/Default.aspx?tabid=245

Nostra Terra owns a 10% WI in the Warrior prospect, operated by Crown Energy Company Inc.

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

 

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