First Well Spudded at Chisholm

RNS Number : 8342L

Nostra Terra Oil & Gas Company PLC

10 September 2012

 



AIM: NTOG

10 September 2012

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Chisholm Trail - First Well Spudded

Nostra Terra, the AIM quoted oil and gas producer with projects in the USA, is pleased to announce that drilling has begun on the first horizontal well in the Chisholm Trail Prospect, located in Oklahoma. 

The well, in which Nostra terra owns a 0.47% working interest, is the first horizontal well on the prospect. Drilling of the well is expected to take approximately 30-days, followed by completion and initial production testing. 

Two more wells are planned to be drilled by the end of 2012, including the one in which Nostra Terra has a 20% working interest.

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

"We're pleased to see the first well spud so quickly.  As we mentioned in the acquisition announcement 11 days ago, this well is one of three being drilled this year where Nostra has interests of up to 20%. We are closely monitoring it's progress in anticipation of the commencement of drilling the initial well where we have a 20% interest."

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:

On 29 Aug 2012 Nostra Terra announced the acquisition of a 20% WI in the Chisholm Trail Prospect.  Drilling of the first three wells (of varying net revenue interests) is planned for H2 of 2012.  The prospect is operated by Ward Petroleum.

Ward Petroleum Corporation, based in Enid Oklahoma, was founded in 1963 by Lew Ward, its Chairman. Mr. Ward is a past-President of the Independent Producers Association of America (IPAA) and is a respected member of the oil producers' community of the United States. Among its industry honours, Ward Petroleum has been listed in the top 100 fastest growing American companies by Inc. magazine, and has been named a "Blue Chip Enterprise" by Nations Business magazine.

Oklahoma is the fifth largest producing state in the United States in crude oil production. Despite its long history, it still produces about one quarter of the peak rate that was reached in 1927. The state was the birthplace for such commonly recognized corporate names as Halliburton, ConocoPhillips and J. Paul Getty.

In their last estimate at the beginning of 2000, the US Energy Information Administration ("E.I.A"). projected Oklahoma's proved oil reserves at 610 million barrels (MMBO). Oklahoma natural gas reserves in E.I.A.'s last estimate on 1/1/2001 were about 14 trillion cubic feet (TCF). Both estimates were based on a simple poll of the State's thousands of oil and gas operators.

The oil produced is always a fraction of what is present in a reservoir, and the oil that remains in Oklahoma's mapped reservoirs is unlikely to be less than 42 billion barrels, and is likely to be much more. From 1901 through mid-2002, 14.5 billion barrels of oil and condensate (natural gas liquids) and 90 trillion cubic feet (TCF) of natural gas were produced and sold in Oklahoma (Oklahoma Geological Survey website).

 

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