Begins Expansion in South Texas
AIM:NTOG
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Acquisition of working interest
27 April 2015
Nostra Terra (AIM:NTOG), the oil and gas exploration and production company with a growing portfolio of assets in the USA, is pleased to announce the acquisition of a 1% working interest in a 20,000 acre prospect in South Texas.
Highlights:
· Initial well already spud
· Shallow oil targets with associated liquids-rich natural gas
· Extensive regional structural mapping
· Up to nine stacked-formations are prospective to horizontal drilling
· Proven success of horizontal drilling in the area
Nostra Terra has acquired the interest with plans to acquire additional interests if appropriate. The cost of drilling the initial well, and further wells planned this year, will be funded from internal cash flow.
The first well has already spud and is expected to be completed in approximately 10 days. It was drilled to a depth of 4,500 feet and will be extended horizontally another 5,100 feet. The continuous drilling program is designed to drill one well at least every four months.
The hydrocarbon province of South Texas is one of the most prolific in the United States. It offers many potential targets, such as the Eagle Ford, Escondido, Olmos, San Miguel, Austin Chalk, Buda, Georgetown, Edwards and other formations, often in excess of 250 feet thick in pay. Importantly, the Eagle Ford is considered to be the original source rock for the hydrocarbons in most of the stacked pays along the trend. The Eagle Ford extends more than 50 miles wide and 400 miles long (equivalent to 870 million acres).
The asset further enhances Nostra Terra's portfolio of wells in areas where proven horizontal drilling and completion technologies are being applied to known reservoirs.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"During the past several months we've been actively looking for additional assets from which to grow our portfolio, where they will have attractive economics even at lower oil prices. The play in South Texas fits that description. While many companies are cutting back their CAPEX budgets significantly we are planning to continue to grow our production and reserves.
We're pleased to have acquired this initial working interest in a large prospect where wells will be continuously drilled and we will continue to seek additional assets on a larger scale."
For more information please visitwww.ntog.co.uk or contact:
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Nostra Terra Oil and Gas Company plc Matt Lofgran, CEO mlofgran@ntog.co.uk |
+1 480 993 8933 |
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Sanlam Securities UK Limited (Nominated adviser and broker) Lindsay Mair / James Thomas / Jamie Vickers |
+44 20 7628 2200 |
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Gary Middleton (PR) |
+44 7951 603 289 |
This information is provided by RNS
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