REG - Nostra Terra O&G Co - Grant East #1 Completion Results

Nostra Terra Oil and GasAnnouncement

07/06/2022 13:15

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RNS Number : 0249O  Nostra Terra Oil & Gas Company PLC  07 June 2022

07 June 2022

 

Nostra Terra Oil and Gas Company Plc

("Nostra Terra" or "the Company")

 

Grant East #1 Completion Results

 

 

Nostra Terra (AIM: NTOG), the international oil & gas exploration and
production company with a portfolio of production and development assets in
Texas, USA, announces that the Grant East #1 well, in the Permian Basin, West
Texas, has been temporarily abandoned ("TA").

 

Following the drilling announcement on the 9(th) of May, the well was
completed in multiple horizons. The well was then fractured stimulated in 3
stages and tested.  On test the well flowed high rates of water with a low
oil cut. Several attempts were made to isolate the deeper water producing
horizons from the shallower oil zones, but they were unsuccessful. The well
has been suspended until a decision is made on what to do with the existing
wellbore.  The Grant East #1 could be used as a future injector or re-entered
and used as a producer based on results of a future offset well.   Presently
there is not sufficient treating capacity within the field to handle the
associated water volumes, however, as the development progresses and treating
capacity is expanded it may be possible to efficiently produce the Grant East
#1 as it is currently completed.

 

The Grant East 1 is in the centre of a proven producing field and the well
encountered 24 feet of gross reservoir section in the Upper Clear Fork and 108
feet of gross reservoir section in the Lower Clear Fork, which compares
favourably with the NTOG operated wells on an adjoining lease (the Grant #5
and #6 wells). Early analysis of the producing results and the produced fluids
indicates that the fracture stimulation propagated out of zone and intersected
a deeper horizon that is used as a water disposal interval on an offset
lease.  This deeper zone is over pressured and of good reservoir quality,
which caused the well to flow at high rates of injected water with a low oil
cut.  Additional technical work needs to be completed to confirm this
analysis but early indications, and a look back at pumping rates and pressures
while stimulating, provide support for this conclusion.

 

Technical work is on-going and will be completed before the next location on
the Grant Lease is drilled later this year.  Results of this analysis will be
implemented in the completion procedures of subsequent Grant East wells to
avoid intersecting this deeper horizon in future.

 

 

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

 

"The results of the Grant East 1 are unfortunate, but the information obtained
is very important. There are still 15 viable drilling locations within the
Grant East Lease and the information obtained from the Grant East 1 well will
be used to improve and optimise future completions. I am looking forward to
drilling the next location using this new information.

 

 Nostra Terra has made significant progress this year increasing production
and cashflow. The Company is in a very strong position at this point. While
the result on the Grant East well isn't what we wanted, we remain optimistic
about further drilling in this proven area, funded from existing resources."

 

 

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

 

Competent Person Disclosure

John Stafford, a Director at Nostra Terra with over 35 years' relevant
experience in the oil industry, has reviewed this announcement for the
purposes of the current Guidance Note for Mining, Oil and Gas Companies issued
by the London Stock Exchange in June 2009. Mr. Stafford is a Fellow of the
Geological Society and a member of the Petroleum Exploration Society of Great
Britain.

 

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