Nostra Terra Oil & Gas Company PLC Operations Update -- Pine Mills
RNS Number : 9398Q
Nostra Terra Oil & Gas Company PLC
03 March 2021
7.00am 3 March 2021
Nostra Terra Oil and Gas Company Plc
("Nostra Terra" or "the Company")
Operations Update - Pine Mills
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 provide an operations update
for its Pine Mills asset in East Texas.
-- Cypress Farmout acreage doubled in size
-- Potential additional locations and reserves identified
-- 2(nd) Cypress well planned in 2021
-- Remaining acreage owned 100% by NTOG being assessed for further potential farmouts
Nostra Terra currently owns and operates a 100% working interest
("WI") in the Pine Mills asset which covers 2,400 acres. On 22
April 2020 Nostra Terra announced that it had signed a farmout
agreement ("farmout") with Cypress Minerals LLC ("Cypress") on an
undrilled 80 acre area (the "Farmout Area") of the 2,400 acres,
where Cypress would drill and complete one well (the "Farmout
Well") at its sole expense to earn a 75% WI. Nostra Terra would
retain a 25% WI in the Farmout Area where the drilling and
completion in the first well cost would be paid for by Cypress.
Additionally Nostra Terra would retain the right to participate for
another 10% WI (7.5% WI after carry) at cost. Pine Mills was
selected by Cypress as its top choice to farm-in to, based on 3D
seismic data and because of the historically high production rates
of nearby wells.
The Farmout Well was successfully drilled at the end of 2020 and
put into production in January of this year. The well continues to
produce at the levels advised by the Company on 25 January. It is
anticipated that the Farmout Well will be added as collateral to
Nostra Terra's Senior Lending Facility which will provide
non-dilutive funds to fund further drilling activity.
In addition, Nostra Terra and Cypress are planning a second well
within the original Farmout Area, due to spud in the second half of
Further, within the original 2,400 acres, where Nostra Terra
still owns a 100% WI, there are additional undrilled areas that are
currently being assessed for additional farmouts.
Ongoing analysis of the technical data indicates that the
Farmout Area, and a significant area beyond, is virgin reservoir.
Hence Cypress has now taken additional leases outside the Farmout
Area (and outside Nostra Terra's 100% owned acreage). The Farmout
Area has now doubled in size, in which Nostra Terra has a 32.5% WI
in the enlarged acreage position. Potential additional locations
and reserves are also being assessed in these areas.
Matt Lofgran , Nostra Terra's Chief Executive Officer, said:
"With the recent success at Pine Mills we're excited to have
doubled the acreage position in an area of virgin reservoir with
the next well now being planned. Pine Mills has been a strong asset
with much more potential for further development.
Nostra Terra continues to execute on our plans to grow
production and cashflow, primarily from existing assets, while
still seeking additional opportunities that could be
transformational for the Company, both in the USA and in other
developed oil and gas provinces."
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
For further information, contact:
Nostra Terra Oil and Gas Company
Matt Lofgran, CEO Email: +1 480 993 8933
Beaumont Cornish Limited
James Biddle/ Roland Cornish Tel: +44 (0) 20 7628 3396
Novum Securities Limited (Broker)
Tel: +44 (0) 207 399 9425
Lionsgate Communications (Public
Jonathan Charles Tel: +44 (0) 7791 892509
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 firstname.lastname@example.org or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
(END) Dow Jones Newswires
March 03, 2021 02:00 ET (07:00 GMT)