Seventh Chisholm Trail Well
AIM: NTOG
8 August 2013
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Seventh Chisholm Trail Well Testing Additional Formation
Nostra Terra, the AIM quoted oil and gas producer with projects in the USA, is pleased to announce its seventh well in the Chisholm Trail Prospect (CT7). Nostra Terra, following forced pooling, has acquired a net Working Interest of approximately 1.61% in its first horizontal well in the Mississippian Play, which intersects the Chisholm Trail Prospect. Drilling has already commenced on the well. The working interest in the CT7 well results from additional acreage recently acquired by the Company.
The Mississippian Play has been widely exploited in other parts of Northern Oklahoma and Southern Kansas. The current activity stretches from Harper County, Oklahoma, on the West to Osage County, Oklahoma, on the East and from Kingfisher County on the South, to beyond Sumner County, Kansas, on the North. Range Resources Corp. of Fort Worth, Texas, (NYSE:RRC) holds roughly 157,000 net acres in the Oklahoma portion of the Mississippian Play, where it completed 18 horizontal wells last year, four of which averaged 24-hr IP of more than 1,000 boepd, including 82% liquids. Range said that its latest production results confirm its estimate of 600 Mboe EUR, since switching to laterals longer than 3,500 ft.
The progression of drilling in the Chisholm Trail Prospect has been such that Nostra Terra now participates with multiple operators across 21 potential locations in the Hunton formation alone. Fourteen more possible half-sections remain to be drilled out of this total, targeting the same geological formation as Gastar Exploration Ltd. (NYSE: GST).
CT6 is waiting to spud and additional wells are being planned and permitted by a number of operators. Nostra Terra will update shareholders of its participation in these wells once elections are made.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"With the consistent successes of each of our previous wells in the Hunton Limestone formation, the prospect has been de-risked. In previous announcements and presentations to shareholders we have highlighted the importance of targeting stacked pay and the related 'acreage multiplier effect'. Shareholders can now start to see the value of having the right acreage with this latest acquisition in a known formation with high potential."
Alden McCall, Chief Operating Officer of Nostra Terra, added:
"The CT7 well marks our first test of the Mississippian formation (overlying the Hunton) in this play. One of the reasons behind our concentration in Oklahoma is the very nature of 'stacked pay zones', as it allows us to exploit numerous zones within the same acreage blocks. Success with this Mississippian test could essentially double the drilling opportunities for us at no additional acreage cost."
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
XCAP Securities plc (Broker)
Jon Belliss Telephone: +44 (0)20 7101 7070
Lothbury Financial Services Limited
Gary Middleton / Michael Padley Telephone: +44 (0)20 3440 7620
Notes:
Nostra Terra has a number of oil projects in the Mid-Continent USA, spanning exploration to production. The company uses the latest technology to bring new oil out of existing fields using either horizontal or vertical drilling.
The Chisholm Trail Prospect (in Oklahoma) is currently producing and drilling new horizontal wells in the Hunton formation which has been the company's biggest producer to date. The Mississippian Play intersects the prospect, where a new test well is now being drilled.
According to worldoil.com, compared to the Bakken, where wells can cost upwards of $11m to drill and frac, Mississippi Lime wells rarely exceed $3.5m from spud to completion. For Oklahoma operators, Mississippian wells are also significantly cheaper than drilling a Woodford well to the southwest, although the latter's typical production rates are appreciably higher.
This information is provided by RNS
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