Mesquite Field Development Plan

RNS Number : 1115F

Nostra Terra Oil & Gas Company PLC

25 October 2018

 

25 October 2018

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Mesquite Field Development Plan

Nostra Terra (AIM:NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, is pleased to announce the appointment of Trey Resources, Inc ("Trey") to create a Field Development Plan ("FDP") for the Company's recently acquired Mesquite Prospect in the Permian Basin, Texas (as announced on 22 October 2018).

Trey is an operator of Permian Basin assets and has specific experience in horizontal drilling across the region.  Trey is led by its CEO, David M. Thomas III, who was part of the management team in place when Concho Resources, Inc. (NYSE:CXO) executed its initial public offering on the NYSE in 2007.

As previously announced, the target formations at the Mesquite Prospect are "tight", meaning the oil-bearing rock formations are of low permeability. As such, the target formations have characteristics that make them ideal targets for horizontal drilling and have delivered substantial oil production in other areas of the Permian Basin. Comparable regional horizontal drilling has delivered initial oil production rates of 200-300bopd.

Nostra Terra has appointed Trey to create the FDP, which will include a complete petro physics work up and full log analysis to assess the reserves potential for the Mesquite Prospect, propose well and completion designs, and complete a volumetric analysis to identify optimal targets for lateral wells.

On the request of Trey, the Company has agreed to issue to Trey one third of its fees, the quantum of which will be determined following the completion of work, in Nostra Terra Ordinary Shares based on the 10-day VWAP prior to the issue of such Ordinary Shares.

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

"We are very happy to appoint Trey Resources to complete the Field Development Plan for Mesquite. Trey brings with it a wealth of experience in horizontal drilling across the Permian Basin, which will directly benefit Nostra Terra in finalizing a robust drilling plan.

Our goal is to grow the Company's net daily oil production by a multiple of current levels by the end of 2019. The acquisition of Mesquite was a first step in realizing this ambition, the appointment of Trey is another and we hope to be able to announce further progress in the coming weeks."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information, visit www.ntog.co.uk or contact:

Nostra Terra Oil and Gas Company plc Matt Lofgran, CEO	Tel:	[phone]
Strand Hanson Limited (Nominated & Financial Adviser and Joint Broker) Rory Murphy / Ritchie Balmer / Jack Botros	Tel:	[phone]
Smaller Company Capital Limited (Joint Broker) Rupert Williams / Jeremy Woodgate	Tel:	[phone]

 

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