Increased Interest In New Colorado Well

RNS Number : 5905M

Nostra Terra Oil & Gas Company PLC

28 August 2013

 



Nostra Terra Oil and Gas Company plc

("Nostra Terra", "NTOG" or the "Company")

Working Interest Increased In Third Colorado Well

Nostra Terra, the AIM quoted oil and gas producer, with a growing portfolio of horizontal and vertical drilling projects in the USA, is pleased to give an update on the Verde Prospect where it has a historical 16.25% working interest ("WI"), located in south-eastern Colorado.

Highlights

·     WI in Third well increased to 17.54% from 16.25%

·     Third well permitted, to be drilled in the next 60 days

·     200% return on Verde 1 expected by year end

As previously announced, following the rapid payout of the initial well, additional leasing was targeted along with drilling to expand the size of the prospect.  Leasing for the next drilling location has now been finalized with Nostra Terra increasing its WI in the well to 17.54%.  Permitting is in process and the well ("Verde #3") is scheduled to be drilled within the next 60 days.

Although core and log interpretations of the second well were encouraging, extensive testing produced too much water for the well to be deemed commercial. The well has been reserved as a water injection well for the future potential water flooding of the project. An injection well was part of the future development thus not resulting in a loss of investment.

The first well in this project reached payout in less than one year, it continues to be a strong producer with cumulative net proceeds to Nostra Terra estimated to reach 200% of the Company's original investment, by year-end.  Due to the strength of the prospect the Company plans to continue to participate in further development.

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

"Our first well in the Verde Prospect reached payout in approximately ten months of production, which is outstanding.  We continue to be very pleased with this project and are looking forward to the results of the third well. Core analysis of the second well indicates that it will make an excellent injection well when the project is water-flooded in the future, and our investment in the well will be recovered in that way. The Verde Prospect remains an exceptional prospect and we intend further participation going forward."

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 & Corporate Limited (Nominated Adviser) 

Bidhi Bhoma/ Toby Gibbs                                                 Telephone: [phone]

XCAP Securities plc (Broker)                            

Jon Belliss                                                                         Telephone: [phone]

Lothbury Financial Services Limited

Gary Middleton / Michael Padley                                       Telephone: [phone]

 Notes to Editors:

Nostra Terra Oil and Gas Company has rapidly grown its portfolio of commercial wells in oil and gas producing states in the USA. From an initial foray into the state of Kansas in the USA back in 2009, the company has extended its reach to include Texas, Colorado, and, most recently, Oklahoma.

The initial step of Nostra's development plan was to buy into non-operated interests. The company has continued building on this concept by both investing in more prospects and  progressively to include much larger stakes.

The company has ambitions beyond this to add greater and greater shareholder value and the next step to that end is to originate its own plays in-house. Nostra is currently working on plays where it will operate and control its own destiny and pace of drilling, as announced in November of last year. The plays will be highly targeted through the integration of proprietary geological, geophysical and engineering interpretations.

 

END

 

 

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