Twin Well 100% Payback Complete in 1 Year

RNS Number : 9103O

Nostra Terra Oil & Gas Company PLC

04 February 2019

 

4 February 2019

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Twin Well 100% Payback Complete in 1 Year

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 report that the Company's "Twin Well" has achieved full payback of drilling costs within 1 year of putting the well into continuous production. This considerably exceeds the expectations of the Company of the likely payback period at the start of drilling.

During H1 2018, Nostra Terra successfully drilled and completed the Twin Well and the "G6 Well" in Mitchell County. The Twin Well was put into continuous production in February 2018 and the G6 Well at the end of June 2018.  Both are vertical wells in the Permian Basin and produce into the same tank battery.

As a result of the success of the Twin Well and G6 Well, four new Proven Undeveloped locations ("PUDs") have now been identified, which the Company expects will add to its existing proven ("1P") reserves. These locations offset the existing wells, which makes them lower risk and means they will benefit from existing production infrastructure. The Board anticipates an upgrade in reserves on theses leases, which, along with the Mesquite asset, will be reflected in the reserve assessment currently being finalized.

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

"We're very happy to see the Twin Well reach payback so quickly. Our focus has been to build a solid foundation of assets where existing wells generate cash flow, and where new wells can be drilled with strong returns, in a lower oil price environment. The performance here is a strong endorsement for our investment in the area.

With Pine Mills, the existing Permian Basin assets, and now the Mesquite Asset, which has such large potential, we have a strong portfolio and foundation from which we plan to continue growing."

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]

 

END

 

 

DRLTJMLTMBMMBAL