Chisholm Trail Well Exceeds Expectations
AIM: NTOG
27 November 2012
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
First Chisholm Trail (CT1) Well Exceeds Expectations
Nostra Terra, the AIM quoted oil and gas producer with projects in the USA, is delighted to announce that the first horizontal well in the Chisholm Trail Prospect (CT1), located in Oklahoma, has averaged 258 barrels of oil equivalent per day (BOEPD) for the most recent ten days of production, which is ahead of the Company's initial expectations.
The well has now been producing and selling oil for several weeks. The well is still in the process of being cleaned up and will continue to recover a mixture of fraccing fluid, oil and gas during this process.
The Company also reports that hydraulic fracturing operations have been completed on both the second and third horizontal wells (CT2 and CT3, respectively). Production testing of both wells is expected to start imminently. As is common practice with Nostra Terra, production levels on these additional wells will be announced following the initial flush production.
|
Chisholm Trail Drilling Activity (currently permitted wells) |
|
||
|
Well |
Working Interest |
Current Status |
Production (boepd) |
|
Chisholm Trail 1 (CT1) |
0.47% |
Producing |
258 |
|
Chisholm Trail 2 (CT2) |
0.16% |
Completed |
(TBD) |
|
Chisholm Trail 3 (CT3) |
12.58% |
Completed |
(TBD) |
|
Chisholm Trail 4 (CT4) |
5.31% |
Drilling |
(TBD) |
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"This result, as well as results from surrounding wells, gives us confidence in the remaining 3 wells in the prospect which have been announced and which include one well with a working interest to Nostra Terra of 12.58%."
Alden McCall, Chief Operating Officer of Nostra Terra added:
"We are in an exciting stage in the Chisholm Trail Prospect. While only a few horizontal wells have been drilled and completed, the early results are very encouraging. This play serves as a good example of how horizontal drilling and completion techniques can bring areas back to life that were considered to have been fully exploited. Nostra Terra will continue to invest in this area while seeking similar opportunities elsewhere."
The technical information within this announcement has been reviewed by Alden McCall, the Company's Chief Operating Officer, a Certified Petroleum Geologist and a member of the American Association of Petroleum Geologists and the Society of Petroleum Engineers.
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
Alexander David Securities Ltd
David Scott / Bill Sharp Telephone: +44 (0)20 7448 9812
Lothbury Financial Services Limited
Gary Middleton / Michael Padley Telephone: +44 (0)20 3440 7621
Notes:
In September 2012, Nostra Terra entered into an agreement with Ward Petroleum for the Chisholm Trail Prospect, a multi-well horizontal drilling project in Oklahoma. The prospect area is large in size and a leasing program is on-going. Nearby drilling has resulted in several wells that produce in excess of 200boepd after the first 30 days of "flush" production. Nostra Terra owns a 20% interest in this active program within which working interests in the individual wells vary. Based on results from neighbouring wells, we anticipate this prospect also has the potential to deliver rapid payouts with continued strong production levels.
Ward Petroleum Corporation, based in Enid Oklahoma, was founded in 1963 by Lew Ward, its Chairman. Mr. Ward is a past-President of the Independent Producers Association of America (IPAA) and is a respected member of the oil producers' community of the United States. Among its industry honours, Ward Petroleum has been listed in the top 100 fastest growing American companies by Inc. magazine, and has been named a "Blue Chip Enterprise" by Nations Business magazine. Since its founding, Ward Petroleum has drilled more than 800 wells in the Anadarko and Arkoma Basins, some as deep as 22,000 feet. Ward Petroleum operates nearly 350 wells in Oklahoma throughout both basins.
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.
This information is provided by RNS
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