Nostra Terra Oil & Gas Company PLC Twin Well 100% Payback Complete in 1 Year (9103O)
February 04 2019 - 1:00AM
UK Regulatory
TIDMNTOG
RNS Number : 9103O
Nostra Terra Oil & Gas Company PLC
04 February 2019
4 February 2019
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Twin Well 100% Payback Complete in 1 Year
Nostra Terra (AIM:NTOG), the oil and gas exploration and
production company with a portfolio of assets in the USA and Egypt,
is pleased to report that the Company's "Twin Well" has achieved
full payback of drilling costs within 1 year of putting the well
into continuous production. This considerably exceeds the
expectations of the Company of the likely payback period at the
start of drilling.
During H1 2018, Nostra Terra successfully drilled and completed
the Twin Well and the "G6 Well" in Mitchell County. The Twin Well
was put into continuous production in February 2018 and the G6 Well
at the end of June 2018. Both are vertical wells in the Permian
Basin and produce into the same tank battery.
As a result of the success of the Twin Well and G6 Well, four
new Proven Undeveloped locations ("PUDs") have now been identified,
which the Company expects will add to its existing proven ("1P")
reserves. These locations offset the existing wells, which makes
them lower risk and means they will benefit from existing
production infrastructure. The Board anticipates an upgrade in
reserves on theses leases, which, along with the Mesquite asset,
will be reflected in the reserve assessment currently being
finalized.
Matt Lofgran, Chief Executive Officer of Nostra Terra,
commented:
"We're very happy to see the Twin Well reach payback so quickly.
Our focus has been to build a solid foundation of assets where
existing wells generate cash flow, and where new wells can be
drilled with strong returns, in a lower oil price environment. The
performance here is a strong endorsement for our investment in the
area.
With Pine Mills, the existing Permian Basin assets, and now the
Mesquite Asset, which has such large potential, we have a strong
portfolio and foundation from which we plan to continue
growing."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, visit www.ntog.co.uk or contact:
Nostra Terra Oil and Gas Company
plc
Matt Lofgran, CEO Tel: +1 480 993 8933
Strand Hanson Limited
(Nominated & Financial Adviser
and Joint Broker)
Rory Murphy / Ritchie Balmer /
Jack Botros Tel: +44 (0) 20 7409 3494
Smaller Company Capital Limited
(Joint Broker)
Rupert Williams / Jeremy Woodgate Tel: +44 (0) 20 3651 2910
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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