Bale Creek Progress Update

RNS Number : 6553R

Nostra Terra Oil & Gas Company PLC

08 November 2011

 



AIM: NTOG

8 November 2011

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Bale Creek - Progress Update

Nostra Terra, the AIM-quoted oil and gas producer with projects in the USA, is pleased to update shareholders on progress on the development plan at the Bale Creek Prospect, located in Oklahoma. 

As indicated in the development plan, announced on acquisition of our interest in June 2011, the 2D seismic has now been shot and interpreted as a precursor to the 3D program that will now follow. The reflections of the key zones and markers are clear and easily distinguished. These results provide confidence to the Board that the 3D interpretation will be highly reliable as a predictor of geologic structure. The 3D seismic grid has been laid out and will be shot soon. The final interpretation from the 3D seismic is expected by the end of November which will enable the final selection of the drill sites.

The drilling of wells in the United States requires operators to go through an approval process at the state level, prior to moving in the drilling rig.  The spacing and pooling hearings for all three horizontal wells in Phase 1 of the Bale Creek Project are now complete and approved.  The process was accelerated in order to facilitate drilling of the wells in quicker succession than originally planned. 

The first well is now planned to spud in December.

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

"We are very pleased with the progress, including results on the initial 2D seismic program, on Bale Creek thus far.  Having the pooling and spacing completed on all wells within Phase 1 will save us a lot of time thus allowing us to drill the wells at a much quicker pace than previously envisaged."

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 27 June 2011 Nostra Terra acquired a 30% WI in Bale Creek, being developed and operated by Pathfinder Exploration Company.

Based in Norman, Oklahoma, Pathfinder Exploration Company, LLC is a multi-disciplined geotechnical company specialising in finding new oil from old fields within the US. Combining the most advanced technology with cost-effectiveness, Pathfinder is able to identify, delineate and grade additional prospects where there are known oil and gas reserves and frequently multiple pay zones, thereby reducing risk and increasing upside potential. Pathfinder acted as operator on behalf of Shell in the Fayetteville Shale play in Arkansas, which has become an important source of natural gas through the use of horizontal drilling.

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).

Announcements made by the Company are available automatically by email to those who register at www.ntog.co.uk.

 

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