Successful 2nd Well Opening
Nostra Terra Oil & Gas Company PLC
03 April 2008
NTOG.L
Nostra Terra Oil and Gas Company plc
('NTOG' or the 'Company')
www.ntog.co.uk
Second Well successfully opened
Nostra Terra Oil and Gas plc is very pleased to announce that, following its
successful reopening of Well #1 within the Neocomian reservoir of the
Oktyabrskoe oil field, it has now successfully re-opened Well # 24 within the
Cenomanian reservoir with positive results. This is a significant development
for the Company as it highlights the potential for oil production within both
reservoirs in the region and follows a Competent Person's Report which provided
a present worth estimate as of 28 February 2007 of possible developed oil and
gas reserves of the Company at $19 million at a 10% discount.
At the start of the reopening process, Well #24 was re-opened to a total depth
of 1,784 metres with all cement bridge plugs removed in the process. Oil and
water horizons were encountered as recorded in the historic well logs.
The well casing extends to 1,685 metres and wire logging tests were conducted on
the open hole target zone between 1,685 metres and 1,784 metres. The geophysical
results confirmed a previously recorded pay zone from 1,750 to 1,755 metres and
indicated a second previously unknown pay zone from 1,743 to 1,748 metres.
The bore hole was cleaned and isolation packers were set at 1,630 metres to
isolate oil and water observed from above the target zone.
The well was opened on Friday 14 March 2008 by dropping the tubing hydrostatic
pressure. Well # 24 began producing gas, gas-condensate, oil and minor amounts
of water. These products, in line with good environmental practices, were flared
into a flare pit.
In the following ten days the well produced oil and water in free flow with a
continuous decline in the water until the well was producing oil and some water
in intermittent flows every two hours. The well-bore was subsequently cleaned
again to remove debris from the tubing with a bottom hole pressure close to
hydrostatic. The fluid level was calculated to be at approximately 584 metres
below the surface (1200 metres above the bottom of the open hole), consistent
with historic records.
NTOG's staff in the Ukraine in conjunction with its partner NAK Nadra
Krymgeologia will conduct bottom hole pressure surveys and swabbing tests to
determine the optimum arrangement of pumping equipment and commence the State
approval process to put the well into production.
This information has been reviewed and approved by Mr. Stephen C. Trimble B.Sc,
P.Eng., APEGGA, SPE, CIM. Mr. Trimble is the president of Trimble Engineering
Associates Ltd., which specialises in oil and gas evaluations.
Brian Courtney, Chief Executive Officer, commented:
'I am delighted with this news which underpins the success of our strategy to
reopen certain wells within the Oktyabrskoe region which were previously
producing oil. I expect steady progress and look forward to reporting further
good news in due course'.
Oleg Rodkin, NTOG's Field Operations Manager, commented:
' I am very pleased with the initial results from well #24 and I am confident it
will meet or exceed its production targets'
For further information, please contact:
Nostra Terra Oil and Gas Company plc Brian Courtney 001-905-842-8543
www.ntog.co.uk Chief Executive bcourtney@ntog.co.uk
Officer
Stephen Oakes +44 (0) 7867 528 108
Non-executive
Director
Blomfield Corporate Finance Limited Alan MacKenzie +44 (0)20 7512 0191
Nick Harriss
Biddicks Shane Dolan +44 (0)20 7448 1000
About NTOG
www.ntog.co.uk
NTOG is an oil production company listed on the London Stock Exchange (AIM): RIC
code NTOG.L
The Company was created to reopen previously oil producing wells within the
Ukraine's Oktyabrskoe oil field under licence via a Joint Activity Agreement
with NAK Nadra Krymgeologia, a subsidiary of NAK Nadra Ukrainiy, a state owned
Ukrainian geological company. NTOG retains 88% interest before payout and a 60%
interest after pay out.
The Oktyabrskoe licence area contains 36 wells; the Company's strategy is to
open five wells initially and then assess subsequent opportunities.
This information is provided by RNS
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