Second Chisholm Well Production Exceeds First Well
AIM: NTOG
11 December 2012
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Chisholm Trail - Second Well Production Exceeds the First Well
Nostra Terra, the AIM quoted oil and gas producer with projects in the USA, is pleased to announce that the second horizontal well in the Chisholm Trail Prospect (CT2), located in Oklahoma, has exceeded the results of the first well by a substantial margin and exceeded the Board's initial expectations. The most recent ten days of production have averaged 555 barrels of oil equivalent per day (BOEPD); the first well averaged 258 BOEPD.
As with the first well, the second 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. Oil and gas sales continue to be made from both Chisholm Trail wells.
In addition, hydraulic fracturing operations have now been completed on the third and fourth horizontal wells (CT3 and CT4), where Nostra Terra has a 12.58% and 5.31% working interest, respectively. It is anticipated that production testing will begin on both wells in the coming weeks.
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 (currently permitted wells) |
|
||
|
Well |
Working Interest |
Current Status |
Production (boepd) |
|
Chisholm Trail 1 (CT1) |
0.47% |
Producing |
258 |
|
Chisholm Trail 2 (CT2) |
0.16% |
Producing |
555 |
|
Chisholm Trail 3 (CT3) |
12.58% |
Completed |
(TBD) |
|
Chisholm Trail 4 (CT4) |
5.31% |
Completed |
(TBD) |
Verde Prospect
On the Company's Verde Prospect, where Nostra Terra owns a 16.25% working interest in the entire prospect, the first well continues to produce at around 50 bopd with minimal decline. The second vertical well continues to undergo testing and completion. At the same time, additional leases continue to be sought by the current partners in the Verde Prospect, in order to expand the acreage further.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"Chisholm Trail continues to be a strong prospect. We're in the early stages of our work here and anticipate further meaningful progress in the coming weeks and months. We are focused on delivering management's target of 125 boepd, net to NTOG shareholders and believe that Chisholm Trail, along with other prospects, will be a significant contributor towards that goal."
Alden McCall, Chief Operating Officer of Nostra Terra, added:
"We are certainly encouraged by the results of the first two wells. The wells are in the very early stages of production but the flow rates are very much in line with similar wells in the area. We fully expect them to be highly economic. We continue to enjoy our new relationship with Ward Petroleum, a company which is very active in opening this play and in other areas of Oklahoma and Colorado. Nostra Terra will continue investing with Ward Petroleum as the play develops, while seeking similar opportunities elsewhere."
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.
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