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 provide an update on permitting and plans for further drilling across its Permian Basin lease in Mitchell County, Texas.
As previously announced, Nostra Terra has been working on the permitting process for three new wells across the Company’s 24 drill-ready locations within its Permian acreage. Nostra Terra has now received drilling approval for the next of these permits, while permitting for the second and third locations continues.
In addition, Nostra Terra is currently assessing additional locations to permit, beyond these three, for future drilling.
Nostra Terra is preparing to drill the next well in early May 2018, based on rig availability. The new permit has been approved for a drilling location, which will target the Clear Fork formation. The recent successful drill at the Company’s Twin Well also targeted the Clear Fork formation. As such, the well profiles for the two newly permitted drill targets exhibit similar economics to the Twin Well, being:
· Anticipated 2:1 Return on Investment (“ROI”) at $40/barrel oil
· Estimated Ultimate Recovery (“EUR”) of 35,000 barrels of oil per well (gross, as per the independent Reserves Report dated April 2017)
· Target 25-40 bopd (gross) average 1st year
· Shallow decline curve
Nostra Terra is in the process of securing a rig to drill the next well and will provide an update to the market once finalised.
All of these operations are already funded from existing Company resources and facilities.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
“Last month we announced the success of the Twin Well, in the Permian Basin, where initial production rates surpassed expectations. At the same time we also became cashflow positive at the corporate level. Positive cashflow generation has since continued to increase thanks to the production increase that we achieved in our Pine Mills asset in East Texas.
We’re excited to be drilling the next well in the Permian Basin so quickly after the successful Twin Well and aim to continue growing production and increasing cashflow further. The new well has a similar economic profile to the Twin Well and we plan to update shareholders regularly on progress.”
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information, visit www.ntog.co.uk
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