Fourth Chisholm Well Beat Expectations
AIM: NTOG
13 February 2013
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Chisholm Trail - Fourth Well Production Greatly Exceeds Expectations
Nostra Terra, the AIM quoted oil and gas producer with projects in the USA, is pleased to announce that the fourth horizontal well in the Chisholm Trail Prospect (CT4), located in Oklahoma, has exceeded the Board's expectations by a substantial margin. The most recent ten days of production have averaged 505 barrels of oil equivalent per day (BOEPD), once again significantly above the board's original expectations of achieving 200 BOEPD. Nostra Terra owns a 5.31% working interest in this well.
The acquisition of new leases and new well permitting continues in the Chisholm Trail Prospect area. Once elections are received and made on further wells, the Company will make relevant announcements.
|
Chisholm Trail Drilling Activity |
|
||
|
Well Sequence |
Working Interest |
Current Status |
Initial 10-day Comparative Production Average (boepd) |
|
Chisholm Trail 1 (CT1) |
0.47% |
Producing |
258 |
|
Chisholm Trail 2 (CT2) |
0.16% |
Producing |
555 |
|
Chisholm Trail 3 (CT3) |
12.58% |
Producing |
348 |
|
Chisholm Trail 4 (CT4) |
5.31% |
Producing |
505 |
Alden McCall, Chief Operating Officer of Nostra Terra, commented:
"Ward Petroleum and NTOG have established a firm presence in the Chisholm Trail Play Area. NTOG maintains a policy of reporting stabilised production rates as averages, rather than Initial Production rates (IPs) because the former are much more meaningful indicators of performance. We are delighted to report, once again, that the most recent 10-day average of CT4 exceeds our expectations, this time by over 150%. Numerous new wells are in the planning stages and we look forward to updating shareholders as they progress."
Matt Lofgran, Chief Executive Officer of Nostra Terra, added:
"As a result of the outstanding performance in production from Chisholm Trail our revenues are greatly exceeding our expectations, allowing us to reinvest proceeds more quickly, while we continue our commitment to the prospect with Ward Petroleum.
We expect to announce in the near future various new wells from multiple prospects as well as updating shareholders about our strategic growth plan for 2013."
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 7620
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 programme 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 programme 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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