REG - Nostra Terra O&G Co - Pine Mills – Fouke 2 Well successful

Nostra Terra Oil and GasAnnouncement

28/02/2022 07:00

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RNS Number : 9417C  Nostra Terra Oil & Gas Company PLC  28 February 2022

28 February 2022

 

Nostra Terra Oil and Gas Company Plc

("Nostra Terra" or "the Company")

 

Pine Mills - Fouke 2 Well successful - pay zone thicker & better quality
than expected

 

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 that the Fouke 2 well, at the Company's
Pine Mills oil field in east Texas, has now reached total depth ("TD").

 

Highlights:

 

·    Wireline logging successfully concluded

 

·    Fouke 2 encountered 23 feet of excellent quality pay sand in two
intervals, significantly exceeding management expectations

 

·    The upper pay interval is 17 ft thick and located within the same
reservoir horizon as the offset Fouke 1 but with a thicker, better quality
(higher porosity) pay section that is located structurally higher.

 

·    The lower pay section is 6 ft thick and situated in the Dexter
interval of the Woodbine which was wet in the Fouke 1.

 

·    Completion operations are currently underway.

 

Following the spud announcement on the 17(th) of February the Company is
pleased to report that the well has now safely reached its planned TD of 6,002
ft, just below the Cretaceous Woodbine Formation.

 

Logs have indicated 23 ft of pay sand in two reservoir sections within the
Cretaceous Woodbine sequence, the upper interval being within the same
reservoir section as the offset Fouke 1 well.  However, the Fouke 2 is
located higher on structure and contains a reservoir interval that is both
thicker and better quality than the Fouke 1.  The Fouke 2 also encountered an
additional pay section in the Woodbine Dexter interval which was found to be
water bearing in the Fouke 1.

 

Completion operations have commenced and the well will be cased and cemented
through both pay intervals. Following this the pay sections will be
perforated, the completion equipment run in the hole and then the surface
production equipment will be put in place. The well will then immediately
start producing into the surface facilities at the Fouke 1 location, which
have been expanded to handle the Fouke 2 volumes.

 

The impact of this well on oil in place and PUDs (additional proven locations)
is currently under evaluation. An update will be provided to the market once
this analysis has been concluded. Nostra Terra owns a 32.5% working interest
("WI") in the Fouke 2 well.

 

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

 

"We're very excited about the results of the Fouke 2 well. The Fouke 1 well
reached payout (where the full cost of the well was recovered) in under a
year. Logging results from this well are better than the Fouke 1 and also
exceeded our pre-drill estimates.  Given the higher commodity prices in
today's market and the expected production rates from the Fouke 2, we
anticipate an even more rapid payout for this well. We look forward to
completing and producing the well in short order."

 

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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