Drilling Start Up - Grant East Lease

RNS Number : 3381I

Nostra Terra Oil & Gas Company PLC

14 April 2022

 

14 April 2022

Nostra Terra Oil and Gas Company Plc

("Nostra Terra" or "the Company")

Drilling Start Up - Newly Acquired Grant East Lease - Permian Basin, West Texas

Nostra Terra (AIM: NTOG), the international oil & gas exploration and production company with a portfolio of production and development assets in Texas, USA,   is pleased to announce the commencement of drilling operations on its new, wholly owned Grant East Lease ("the Lease") located in the Permian Basin of West Texas.

· 160 acres of Leases secured

· Development plan completed for up to 8 new wells

· Primary target is the Permian Age Clear Fork formation

· 3 wells being permitted

· First well to be spud in the coming days

The Grant East Lease is newly acquired acreage located within the Eastern Shelf of the Permian Basin of West Texas. The Lease consists of multiple units which contain a total of 160 acres, with rights to all depths. A drilling and development plan has been completed that consists of 8 well locations drilled on 20 acre/well spacing. However, some offset acreage has been developed down to 10 acre/well spacing providing for the potential of up to 16 new wells on the Lease.  (Optimal spacing will be determined based upon the initial well results).

The first well on the Lease (the Grant East #1) is planned to test the Clear Fork (primary) and San Andres (secondary) formations, both of which are prolific producing formations in the area. The Clear Fork contains three distinct members (Upper, Middle and Lower) which are located between 2,500 feet to 3,200 feet below the surface.  All three members are productive in offset acreage and targets in this initial well.  The Grant East #1 is anticipated to take approximately 7-10 days to drill and complete if successful.  After completion, the well will be fracture stimulated to enhance its productivity and then tested, prior to being placed into production. From spud to production start-up is anticipated to take between 30-45 days in the success case.

Nostra Terra benefits from operating in this area for several years, including drilling the "Twin Well" near this acreage, which reached payout (where the full cost of the well was recovered) in under a year, during a lower oil price environment. 

The Company is permitting 3 wells initially with additional wells to follow depending upon the results and subsequent spacing requirements. Location construction is nearing completion and the drilling rig scheduled to arrive on location in the coming days. The Lease acquisition and drilling costs for the Grant East # 1 have been internally funded.

Finally, completion and testing operations on the Fouke #2 are nearing completion with the well anticipated to be placed into production within the next week.

Matt Lofgran , Nostra Terra's Chief Executive Officer, said:

"We have aggressive growth plans for the Company this year and I am happy to report that we are delivering on them with the acquisition of the Grant East Lease in West Texas.  Immediately upon the successful acquisition of the Lease we began permitting several wells, construction of a location and contracted a drilling rig. We're excited to get started so quickly at Grant East, which we believe has the potential to be a bigger contributor to the Company's net production than Pine Mills where we had our recent success with the Fouke 2.

We've taken great strides towards increasing both our production and cashflow in recent years which now provides us with the funds to invest in our continued growth. We're entering a very busy period for the Company and I look forward to updating everyone in the very near term on the production results from the Fouke 2 well along with the progress on our growth plans as they continue to unfold in subsequent periods. "

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information, contact:

Nostra Terra Oil and Gas Company plc Matt Lofgran, CEO Tel: [phone] Beaumont Cornish Limited (Nominated Adviser) James Biddle/ Roland Cornish Tel: [phone] Novum Securities Limited (Broker) Jon Belliss Lionsgate Communications (Public Relations) Jonathan Charles Tel: Tel: [phone]  [phone]

 

END

 

 

DRLGPURWCUPPGMW