Additional Interest At High Plains Prospect

RNS Number : 3002E

Nostra Terra Oil & Gas Company PLC

09 May 2013

 



Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

High Plains Prospect - Additional Interest Acquired

Nostra Terra, the AIM oil and gas producer, building its portfolio of working interests ("WI") in US oil fields, is pleased to announce a progress update on the High Plain Prospect, located in Texas.  Based on encouraging results, the Company has acquired additional working interest and is moving forward in the defining prospects.

The High Plains Program covers a contiguous area of 42,000 acres (66 square miles), where subsurface mapping, 3D seismic, vertical and horizontal drilling and completion technologies have successfully been applied to several different formations. The WI partners will seek to increase success rates through the application of a new "proof of concept". The region was noted in the US$2.85 billion purchase of Cordillera Energy Partners by Apache Corporation in January, 2012.

Re-entry - Positive Results

The WI partners suspected that a previously drilled well, which was intended to test the concept, was mis-drilled. The first step of the current program was to re-enter the well in order to validate that the previous well had not tested the exploration model. The re-entry confirmed that the original well missed its target by a wide margin.   

Seismic Program Advancing

Accordingly the WI partners are now reprocessing 35,000 acres of proprietary seismic data, integrating that with 42,000 acres of detailed subsurface mapping, and identifying other potential drill targets.  The WI partners expect to identify multiple prospect areas within the Area of Mutual Interest ("AMI"), each of which could comprise up to 2,500 acres and each with multiple drilling locations.

Additional Interest Acquired

Nostra Terra has also increased it's working interest from 5.0% to 6.5% across the entire prospect.

Highlights of the High Plains Prospect include:

·     Exploration component added to NTOG portfolio;

·     Highly experienced and respected operator-partner;

·     AMI area covers 42,000 acres (66 square miles);

·     Extensive regional subsurface and 3D seismic updating underway;

·     Several stacked-formations in addition to the primary objective;

·     Moderate depth oil and liquids-rich targets; and

·     Successful nearby wells have reached payout in less than one year.  

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

"We're excited about what we learned from the re-entry and further testing will now take place as we move forward.  When the opportunity to increase our working interest arose, it was exercised because of the tremendous potential we believe this area has. We now have a 6.5% working interest in the overall exploration program as a result. The program will integrate detailed subsurface mapping with 3D seismic further defining our exploration model. This will take several months to accomplish, after which we will prioritize the prospect areas that result for drilling.  Due to the nature of the play, this prospect could provide opportunity to build a healthy pipeline of drilling locations for years to come, adding nicely to Chisholm Trail and other prospects in our portfolio."

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 (Joint Broker)

David Scott / Bill Sharp                                                     Telephone: [phone]

XCAP Securities plc (Joint Broker)

Jon Belliss / Halimah Hussain                                          Telephone: [phone]

Lothbury Financial Services Limited

Gary Middleton / Michael Padley                                       Telephone: [phone]

 

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