Nostra Terra Oil & Gas Company PLC Pine Mills -- Production Rates (6819M)
January 25 2021 - 01:00AM
UK Regulatory
TIDMNTOG
RNS Number : 6819M
Nostra Terra Oil & Gas Company PLC
25 January 2021
7.00am 25 January 2021
Nostra Terra Oil and Gas Company Plc
("Nostra Terra" or "the Company")
Pine Mills - Production Rates
Nostra Terra (AIM: NTOG), the oil & gas exploration and
production company with a portfolio of development and production
assets in Texas, USA is pleased to announce production rates of the
Cypress farm-out well at the Company's Pine Mills oil field.
In December the well was perforated in the target formation.
Following this the well was swabbed to remove drilling fluids and
relieve hydrostatic pressure. After successfully swabbing over a
48hr period oil was recovered at a rate of 15 barrels per hour.
In January the well was completed and put into continuous
production. It is currently producing at a steady rate of 100 bopd,
limited by pump capacity and surface equipment and with no water
cut. While this rate is above expectations, given the strong
performance the operator will review seeking authorisation to
increase production further. NTOG have a 32.5% working interest in
this well (32.5 bopd before royalties) and any future wells in the
farm-out area.
Given the positive result of this well, the Company expects an
increase in its proven reserves. The Company hasn't previously
booked any reserves for this acreage or any of the additional
undrilled acreage on its Pine Mills oil field. The technical team
is currently reviewing seismic data and logs to select the next two
drilling locations. When the tank battery was built for the current
well, two additional 400-barrel tanks were added to facilitate
future production.
This area benefits from conventional clastic reservoirs which
typically have shallow, predictable declines and long-life
production profiles and reserves. Operationally the wells and
completions are relatively simple, minimising well intervention
costs and reducing opex to a level where we anticipate lifting
costs of less than $10/bbl.
Further updates will follow regarding reserves and
operations.
Matt Lofgran , Nostra Terra's Chief Executive Officer, said:
"Pine Mills has proven to be a great asset for Nostra Terra.
While we retain 100% working interest on the majority of the
acreage, this 80-acre farmout with Cypress has been very successful
for all parties involved. Cypress has been a great partner and we
look forward to a continued relationship. The success goes beyond
the single well, with the potential for further opportunities in
the area, and proves up additional reserves in a low-risk
development.
The well was being planned and permitted when oil was circa $40
per barrel (WTI). With oil prices now above $50 and lifting costs
in the single digits the production will have a positive impact on
the Company. A great start to 2021 as we plan to build from
here."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014
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.
For further information, contact:
Nostra Terra Oil and Gas Company
plc
Matt Lofgran, CEO Email: +1 480 993 8933
Beaumont Cornish Limited
(Nominated Adviser)
James Biddle/ Roland Cornish Tel: +44 (0) 20 7628 3396
Novum Securities Limited (Broker)
Jon Belliss
Tel: +44 (0) 207 399 9425
Lionsgate Communications (Public
Relations)
Jonathan Charles Tel: +44 (0) 7791 892509
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