REG - Nostra Terra O&G Co - Q4 Production and Operations Update

Nostra Terra Oil and GasAnnouncement

20/04/2023 07:00

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RNS Number : 8260W  Nostra Terra Oil & Gas Company PLC  20 April 2023

20 April 2023

 

Nostra Terra Oil and Gas Company Plc

("Nostra Terra" or "the Company")

 

Q4 Production and Operations Update

 

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 a production and operations update for the
Company for Q4 2022.

 

Highlights

 

·    Record annual production and revenue.

·    30% annual production growth

·    4(th) quarter production rates, highest of 2022

·    Fouke 1 and 2 well producing at high rates

 

 

Production

During the fourth quarter, net sales were 11,988 barrels (100% oil), resulting
in $946,464 of revenue, with the average realised sales price for the period
being $78.95 per barrel. Production volumes in Q4 were the highest of the
year, some 30% above Q1 22.

 

                 Production (Sales) - Bbls                     $USD
                 Gross       NTOG - Net (Monthly)  NTOG - Net  NTOG Net Revenue

                 (Monthly)                         (Daily)
 January 2022    6,105       3,531                 114         $265,254
 February 2022   3,649       1,759                 63          $149,867
 March 2022      7,277       3,833                 124         $446,381
 Q1-22 TOTAL     17,031      9,123                 101         $861,502
 April 2022      6,726       3,510                 117         $313,382
 May 2022        9,960       4,116                 133         $437,490
 June 2022       9,108       3,634                 121         $390,867
 Q2-22 TOTAL     25,795      11,260                124         $1,141,739
 July 2022       10,658      4,281                 138         $421,986
 August 2022     9,396       3,422                 110         $310,005
 September 2022  10,314      3,865                 116         $310,713
 Q3-22 TOTAL     30,368      11,568                126         $1,042,704
 October 2022    10,364      4,536                 146         $375,134
 November 2022   9,800       3,701                 123         $298,476
 December 2022   10,023      3,751                 121         $272,854
 Q4-22 TOTAL     30,187      11,988                130         $946,464

 

Sales figures are based on accruals and may vary slightly from actuals.

 

Operations

 

Fourth quarter production grew 4% over the prior quarter. However, several
wells were temporarily shut-in during the period, while planned production
facility improvements were undertaken at the Pine Mills field (where the
Company holds a 100% working interest).

 

 

Fouke Wells

In January 2021, the Fouke 1 well was placed on production at 82 bopd, limited
by field rules (allowable). In May 2022, the Fouke 2 well was drilled and
tested. On a 24-hour test, the Fouke 2 produced 145 bopd with a 0% watercut
and was placed on production at this rate.  Fouke 2 was produced at this test
rate for several months.  Concurrent with the Fouke 2 testing activities, the
production rate of the Fouke 1 was increased to 120 bopd and monitored for
several months. Nostra Terra owns 32.5% working interest in the Fouke wells
and farmout area.

 

The results of testing and monitoring these wells over six months determined
that they could be produced at these higher rates efficiently. The operator
subsequently petitioned the authority for a permanent increase in the field
allowable rate.   After the increased allowable request, the wells were
produced at varying rates to obtain additional technical information to
support the request for a permanent increase in the field allowable rate.

 

Field Allowable Hearing

On 30 March 2023, a hearing on the petition took place with the Texas Railroad
Commission (the oil and gas authority in Texas). The Operator (Cypress
Production Inc) requested a permanent increase of the allowable field rate to
135 bopd per well. During the hearing, no offset operators objected to the
request for a permanent increase in the allowable rate.  The Commission is
expected to publish its decision on the petition in June 2023.

 

Fouke wells Update

Both wells continue to produce at rates above the current field allowable at
0% watercuts.  The Fouke 1 well has produced over 14,541 barrels of oil
(gross) and is currently producing approximately 125 bopd (gross). The Fouke 2
well has produced over 7,403 barrels of oil (gross) and is currently producing
approximately 127 bopd (gross).

 

The Company is currently conducting geological and geophysical work on the
Pine Mills acreage, where it owns 100% working interest, looking for
opportunities in areas similar to the Fouke farmout acreage.

 

 

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

 

"We are very pleased to have finished the year at our highest production
level, some 30% higher than the start of the year. The Fouke wells have
delivered multiples of our initial investment and remain strong producers. The
ongoing technical work in our 100% Pine Mills acreage is very exciting.  It's
an area that hasn't been technically reviewed for many years. With a
combination of newly interpreted seismic data and the Fouke well results, it
can deliver substantial volume potential that can be developed quickly and
profitably. I look forward to reporting on the results in subsequent periods."

 

 

This announcement contains inside information for 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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