Chisholm Trail and Verde Update
AIM: NTOG
6 January, 2014
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Operations Update - Chisholm Trail and Verde
Nostra Terra, the AIM quoted oil and gas producer with its portfolio of producing assets in the USA, is pleased to provide an update on the Company's Verde prospect in Colorado and its Chisholm Trail prospect in Oklahoma.
Operations Update
In Colorado, the tank battery for the Verde 3 (Holt) well has been installed and the well is now under continuous production. Nostra Terra has a 17.54% Working Interest ("WI") in the well, which is operated by Plainsmen Partners. Production averages will be provided once the rate of production stabilizes.
The CT8 (Jones1-25H) and the CT9 (Mel B 1-33H) wells, in the Hunton formation, underwent hydraulic fracturing ("frac") operations in December as previously forecasted. Both wells are now undergoing completion operations, including construction of tank batteries and putting the wells into production testing. Nostra Terra has a 2.00% WI and 7.375% WI in each well, respectively.
The CT11 (Bugg 1-5H) well, also in the Hunton Formation, is now drilling. Nostra Terra recently elected to participate in this well under a 3.53% WI, and completion is anticipated in Q1, 2014. There is potential for a minor adjustment in the WI and the Company will provide an update when the negotiations are finalized.
Further Chisholm Trail Wells Planned
Nostra Terra has elected to participate in the 12th well (Oswald 1-28H) in the Chisholm Trail prospect (CT12). The well is now permitted and is planned to be drilled to test the Mississippian formation in early 2014. Nostra Terra has a 1.59% WI in the well which will be operated by Alta Mesa.
Ward Petroleum has scheduled a pooling and spacing hearing for an additional horizontal Hunton well that is scheduled to take place in January 2014. Following Oklahoma Corporation Commission approval, it is anticipated that the well will be permitted and drilled as early as Q1, 2014. While the exact Working Interest has not been determined, it is anticipated that it will be Nostra Terra's largest WI to-date in Chisholm Trail.
Table 1- WIs are subject to change
|
Well |
Well Name |
Formation |
Operator |
Net WI |
Status |
|
CT6 |
Tharp 2-26H |
Mississippian |
Alta Mesa |
TBD |
On hold
|
|
CT7 |
LSEPMU 7-3H |
Mississippian |
Hinkle |
1.60% |
Producing
|
|
CT8 |
Jones 1-25H |
Hunton |
Stephens |
2.00% |
Frac completed, putting into production |
|
CT9 |
Mel B 1-33H |
Hunton |
Husky |
7.375% |
Frac completed, putting into production |
|
CT10 |
(Unnamed) |
Hunton |
Gastar |
1.875% |
In planning
|
|
CT11 |
Bugg 1-5H |
Hunton |
Payne |
3.53% |
Drilling
|
|
CT12 |
Oswald 1-27H |
Mississippian |
Alta Mesa |
1.59% |
Permitting
|
Additional wells are being planned and permitted by a number of operators in Chisholm Trail. Nostra Terra will update shareholders of its participation in these wells once elections are made.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"The timing of the collection of monies due from Richfield was uncertain which has affected the timing of several other matters, including developing our own prospects. With the positive resolution of collection efforts, our focus can continue on growing our portfolio of both non-op and operated interests.
In the meantime the Chisholm Trail prospect continues to develop nicely. The Hunton Limestone is now regarded as a resource play reiterating the board's confidence in the area. As successful wells continue to come on stream we are seeing more operators increasing the pace of development in the play and understand that many more wells are being planned to exploit the Hunton Limestone. In addition to the Hunton Limestone, Mississippian wells are also now being drilled and tested within the same area.
In 2014 we'll seek to grow production across a wider portfolio."
For further information, visit www.ntog.co.uk or contact:
Nostra Terra Oil and Gas Company plc
Matt Lofgran, CEO
mlofgran@ntog.co.uk Telephone: +1 480 993 8933
Shore Capital & Corporate Limited (Nominated Adviser)
Bidhi Bhoma / Toby Gibbs Telephone: +44 (0)20 7408 4090
XCAP Securities plc (Broker)
Jon Belliss Telephone: +44 (0)20 7101 7070
Lothbury Financial Services Limited
Gary Middleton / Michael Padley Telephone: +44 (0)20 3440 7620
This information is provided by RNS
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