Permian Basin - Back-to-Back Wells
12 April 2018
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Permian Basin - Back-to-Back Wells
Nostra Terra (AIM:NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, is pleased to provide an update on its plans for drilling across its Permian Basin acreage in Mitchell County, Texas. The Company has now decided to drill two wells back-to-back, which are to be funded from existing resources and facilities.
Back-to-Back Two Well Drilling
On 26 March 2018, Nostra Terra announced that it was planning to drill one new well at its Permian Basin leases. Following the positive results of the Twin Well (as most recently announced on 9 April 2018), the Company has decided to increase its pace of development by drilling the next two wells back-to-back.
The first of these wells is on the same lease as the successful Twin Well, which is producing at a higher rate than expected (per RNS 9 April 2018). Nostra Terra has a 53.25% Working Interest in this well.
The second well is in the same area and Nostra Terra owns a 73% Working Interest.
The back-to-back wells will target the Clear Fork formation, which is the same formation as is currently producing at the Twin Well, and share similar economic profiles. As with the Twin Well, the new wells will also target secondary formations, which are common producing formations in the area.
Locations' Preparation
The contractor is now scheduled to commence operations to prepare the back-to-back drilling locations. Drilling at the first well is anticipated to commence in early May with the second well immediately afterwards.
All of these operations are already funded from existing Company resources and facilities.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"The purpose of the Senior Lending Facility with Washington Federal Bank was to accelerate our growth while minimising dilution. Last year we were able to drill one well on our Permian Basin leases. This year we plan to drill three or more. Having already become cash flow positive as a business, any additional production we are able to add to our portfolio has the potential to add significantly to our bottom line."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information, visit www.ntog.co.uk or contact:
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Nostra Terra Oil and Gas Company plc Matt Lofgran, CEO
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Tel: |
+1 480 993 8933 |
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Strand Hanson Limited (Nominated & Financial Adviser and Joint Broker) Rory Murphy / Ritchie Balmer / Jack Botros
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Tel: |
+44 (0) 20 7409 3494 |
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Smaller Company Capital Limited (Joint Broker) Rupert Williams / Jeremy Woodgate |
Tel: |
+44 (0) 20 3651 2910 |
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This information is provided by RNS
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