Paw Paw Prospect Update

RNS Number : 3098Q

Nostra Terra Oil & Gas Company PLC

26 February 2016

 

AIM:NTOG                                                                                         26 February 2016

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Wyoming Prospect Update

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 provide an update on the Paw Paw prospect in Wyoming.

In December we announced the approval of an Exploratory Unit by the Bureau of Land Management, which creates numerous benefits such as a single commercial well which perpetuates all leases within the entire Unit, as well as allowing us to operate multiple leases as a single lease under a single operator.

The permitting process is underway and anticipated to be complete within weeks.  An extension to drill the Paw Paw Prospect has been agreed by Koch Exploration, Inc. The extension to the agreement allows NTOG an additional several months to spud. It is also possible that the Bureau of Land Management ("BLM") will delay the drilling deadline even further due to the current wildlife protection measures. Should that occur, the deadline to drill could be extended beyond the summer of this year, thus allowing further time for the oil prices to stabilize.

The prospect is located in Big Horn County, Wyoming and could hold as much as 7.3 million barrels of producible oil, per Haas Engineering (3^rd-party reservoir engineer). Of that total, NTOG would own as much as 5.84 million net barrels in probable and potential reserves, under the terms of the agreement.

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

"While our focus is on increasing cash flow and proven reserves such as the recent expansion into the Permian Basin, the Paw Paw prospect is a very attractive prospect, which could add significant reserves for relatively low cost. 

We've previously stated that we plan to bring in other industry partners to finance the initial exploration well while we operate and keep a carried working interest.  This extension and the possible future extensions allows us to increase further exposure to upside with minimum capital exposure for our shareholders."

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

Nostra Terra Oil and Gas Company plc

Matt Lofgran, CEO                                        Telephone: [phone]

[e-mail]               

Sanlam Securities UK Limited

(Nominated adviser and broker)

Simon Clements / James Thomas              Telephone: [phone]

Walbrook PR

Gary Middleton / Nick Rome                        Telephone: [phone]

 

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