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 on production at its Twin Well and provide a permitting update for its assets in the Permian Basin in Mitchell County, Texas.
Twin Well Production
Average production at the Twin Well for the last 30 days was 58 barrels of oil per day (“bopd”).
The Twin Well was drilled to a total depth of 3,200 feet, encountering more than 113 feet of gross oil pay in aggregate across multiple prospective zones, with oil currently being produced from the Clear Fork Formation. Nostra Terra owns a 53.25% Working Interest in the 120 acre lease which has two additional drill ready locations, one of which is now permitted.
Two New Permits Approved
Further to the announcement made by Nostra Terra on 26 March 2018 regarding the approval to drill one new well on its Permian Basin leases, the Company has now received approval for the two additional permits, where the Company owns a 73% Working Interest. Accordingly, Nostra Terra now has permits to drill three new wells. All three wells will target the Clear Fork formation and share similar economic profiles to the recently drilled Twin Well. In addition, Nostra Terra continues to assess additional locations to permit, beyond the three awarded, for future drilling.
As previously announced, Nostra Terra expects to commence drilling operations at the first of the three new wells in early May 2018. The Company is in the process of preparing to build the drilling location and securing a rig to drill the next well. Nostra Terra will provide updates to the market in the coming weeks.
All of these operations are already funded from existing Company resources and facilities.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
“We are very excited about the strong production from the Twin Well, which has continued to surpass our expectations. Having already become cashflow positive, our focus is to build that further.
We’re looking forward to drilling the next well where we expect any increase in production to improve the Company’s bottom line.”
For further information, visit www.ntog.co.uk
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