REG - Nostra Terra O&G Co - Drilling Start Up – Grant East Lease

Nostra Terra Oil and GasAnnouncement

14/04/2022 07:16

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RNS Number : 3381I  Nostra Terra Oil & Gas Company PLC  14 April 2022

14 April 2022

 

Nostra Terra Oil and Gas Company Plc

("Nostra Terra" or "the Company")

 

Drilling Start Up - Newly Acquired Grant East Lease - Permian Basin, West
Texas

 

Nostra Terra (AIM: NTOG), the international oil & gas exploration and
production company with a portfolio of production and development assets in
Texas, USA, is pleased to announce the commencement of drilling operations on
its new, wholly owned Grant East Lease ("the Lease") located in the Permian
Basin of West Texas.

 

·      160 acres of Leases secured

·      Development plan completed for up to 8 new wells

·      Primary target is the Permian Age Clear Fork formation

·      3 wells being permitted

·      First well to be spud in the coming days

 

The Grant East Lease is newly acquired acreage located within the Eastern
Shelf of the Permian Basin of West Texas. The Lease consists of multiple units
which contain a total of 160 acres, with rights to all depths. A drilling and
development plan has been completed that consists of 8 well locations drilled
on 20 acre/well spacing. However, some offset acreage has been developed down
to 10 acre/well spacing providing for the potential of up to 16 new wells on
the Lease.  (Optimal spacing will be determined based upon the initial well
results).

 

The first well on the Lease (the Grant East #1) is planned to test the Clear
Fork (primary) and San Andres (secondary) formations, both of which are
prolific producing formations in the area. The Clear Fork contains three
distinct members (Upper, Middle and Lower) which are located between 2,500
feet to 3,200 feet below the surface.  All three members are productive in
offset acreage and targets in this initial well.  The Grant East #1 is
anticipated to take approximately 7-10 days to drill and complete if
successful.  After completion, the well will be fracture stimulated to
enhance its productivity and then tested, prior to being placed into
production. From spud to production start-up is anticipated to take between
30-45 days in the success case.

 

Nostra Terra benefits from operating in this area for several years, including
drilling the "Twin Well" near this acreage, which reached payout (where the
full cost of the well was recovered) in under a year, during a lower oil price
environment.

 

The Company is permitting 3 wells initially with additional wells to follow
depending upon the results and subsequent spacing requirements. Location
construction is nearing completion and the drilling rig scheduled to arrive on
location in the coming days. The Lease acquisition and drilling costs for the
Grant East # 1 have been internally funded.

 

Finally, completion and testing operations on the Fouke #2 are nearing
completion with the well anticipated to be placed into production within the
next week.

 

Matt Lofgran, Nostra Terra's Chief Executive Officer, said:

 

"We have aggressive growth plans for the Company this year and I am happy to
report that we are delivering on them with the acquisition of the Grant East
Lease in West Texas.  Immediately upon the successful acquisition of the
Lease we began permitting several wells, construction of a location and
contracted a drilling rig. We're excited to get started so quickly at Grant
East, which we believe has the potential to be a bigger contributor to the
Company's net production than Pine Mills where we had our recent success with
the Fouke 2.

 

We've taken great strides towards increasing both our production and cashflow
in recent years which now provides us with the funds to invest in our
continued growth. We're entering a very busy period for the Company and I
look forward to updating everyone in the very near term on the production
results from the Fouke 2 well along with the progress on our growth plans as
they continue to unfold in subsequent periods."

 

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic
Law by virtue of the European Union (Withdrawal) Act 2018. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.

 

For further information, contact:

 Nostra Terra Oil and Gas Company plc          Tel:   +1 480 993 8933

 Matt Lofgran, CEO

 Beaumont Cornish Limited                      Tel:   +44 (0) 20 7628 3396

 (Nominated Adviser)

 James Biddle/ Roland Cornish

 Novum Securities Limited (Broker)             Tel:   +44 (0) 207 399 9425

 Jon Belliss

                                               Tel:    +44 (0) 7791 892509

 Lionsgate Communications (Public Relations)

 Jonathan Charles

 

 

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