Launch of "in house" play in Oklahoma
AIM: NTOG
30 November 2011
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Nostra Terra launches "in house" play in Oklahoma
Nostra Terra, the AIM-quoted oil and gas producer with a growing number of projects in the USA, is pleased to announce that it has commenced the development of its own plays within an established hydrocarbon region in Oklahoma.
The Company has identified areas within several Oklahoma counties which it believes to be highly prospective for oil and liquids-rich gas in a number of geological formations. Several experienced geologists and petroleum landmen have been engaged to identify attractive targets throughout the area. This has resulted in the Company pursuing leases under several drilling prospects in the first of the project areas. Leasing and pre-drilling activities will continue through 2012. The Company plans for the first wells to be drilled in the fourth quarter of 2012.
Nostra Terra intends to acquire full interest leases in the prospect areas. When drilling begins, Nostra Terra may invite other companies to participate in specific prospects.
Geologically, the project area lies within a proven hydrocarbon system containing shallow oil and associated liquids-rich natural gas producible from numerous formations. There is extensive regional structural mapping. A number of potential horizontal drilling locations have already been identified.
Alden McCall, Nostra Terra's Chief Operating Officer, said:
"We have been working intensely over many months to identify areas of historic oil production where we can become an early-mover in establishing a strong acreage position that fits our strategy for building the Company. We are targeting stacked, multi-pay formations over large areas that respond to horizontal drilling and completion technology. It is our aim to generate numerous prospects, each with multiple potential drilling locations that yield repeatable results, as we build our presence in several areas."
Nostra Terra's CEO, Matt Lofgran, added:
"There is a renaissance taking place in the US oil industry, with advanced drilling and completion technology generating major new reserves from old fields that were thought to be depleted or in steep decline. We have already demonstrated our ability to participate successfully in this rebirth through our initial projects. Developing and operating our own play will give us greater control over our destiny, and enable us to accelerate the growth of our production, revenue and reserves."
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 9820
Lothbury Financial Services Limited
Gary Middleton / Michael Padley Telephone: +44 (0)20 7868 2010
Notes:
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.
In their last estimate at the beginning of 2000, the US Energy Information Administration ("E.I.A"). projected Oklahoma's proved oil reserves at 610 million barrels (MMBO). Oklahoma natural gas reserves in E.I.A.'s last estimate on 01/01/2001 were about 14 trillion cubic feet (TCF). Both estimates were based on a simple poll of the State's thousands of oil and gas operators.
The oil produced is always a fraction of what is present in a reservoir, and the oil that remains in Oklahoma's mapped reservoirs is unlikely to be less than 42 billion barrels, and is likely to be much more. From 1901 through mid-2002, 14.5 billion barrels of oil and condensate (natural gas liquids) and 90 trillion cubic feet (TCF) of natural gas were produced and sold in Oklahoma (Oklahoma Geological Survey website).
Announcements made by the Company are available automatically by email to those who register at www.ntog.co.uk
This information is provided by RNS
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