REG - Nostra Terra O&G Co - Favourable Ruling regarding Fouke Wells

Nostra Terra Oil and GasAnnouncement

30/08/2023 10:00

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RNS Number : 8069K  Nostra Terra Oil & Gas Company PLC  30 August 2023

30 August 2023

 

Nostra Terra Oil and Gas Company Plc

("Nostra Terra" or "the Company")

 

Favourable Ruling regarding Fouke Wells

 

Nostra Terra (AIM: NTOG), the international oil & gas exploration and
production company with a portfolio of development and production assets in
Texas, USA, is pleased to provide an update on the field allowable rules
petition governing production at its Fouke Wells.

 

Further to the announcement on 20 April 2023, where the Operator (Cypress
Production Inc) requested a permanent increase in the allowable field rate
from 82 bopd per well to 126 bopd per well, the final order approving the
proposed change has been approved.

 

The final order approves the proposed amendment, increasing the production
limit to 126 bopd per well. Furthermore, it cancels all accrued overproduction
that has taken place since start-up. Hence the Company will not have to bear
any consequences for the overproduction to date.

 

The Fouke 1 and Fouke 2 wells (NTOG 33% working interest) are currently
producing 88 and 91 bopd, respectively, both still above the original field
limit. Cumulative production for the Fouke 1 (which commenced production
January 2021) is 76,634 barrels of oil, and Fouke 2 (commenced production May
2022) is 56,294 barrels of oil.

 

To identify additional Fouke-like locations, the Company is undertaking
further geological and geophysical work on the rest of the Pine Mills acreage,
where it owns a 100% working interest.

 

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

 

"We are very pleased to have a positive result from the hearing, allowing the
wells to be produced at these new limits while not requiring the company to
make up for its past overproduction. It's the best possible result we could
have achieved. These wells have provided strong cash flow and a great return
on investment. The Company continues to seek additional similar opportunities
in the area."

 

 

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

 

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