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 the completion 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. Production from swabbing was 100% oil at a strong rate. Having successfully completed the swab, the completion was run and hooked up awaiting commission.
Construction of the tank battery has been completed, including two storage tanks of 400 barrels each, giving us 800 barrels capacity for the well. (An additional two tanks, each of 400 barrels capacity have also been brought on site for use in the next development well). The flowlines have been connected to the tank battery and the well put into continuous production.
Further updates will follow once the Company is in a position to notify stabilised production rates and reserves.
Matt Lofgran , Nostra Terra’s Chief Executive Officer, said:
“We are very pleased with the success of this well. The drilling was done safely and on budget. The logging confirmed the presence of an oil bearing target reservoir, which came in at a higher depth than prognosed, indicating a higher oil column and the potential for more reserves than originally anticipated. The swabbing results further support the strength of this well and the acreage at Pine Mills.
We plan to update on the financial impact of this well after we announce flow rates from the well. With the well now in production we’ll also in due course be adding this to our Senior Facility. This will play a role in future development of the Pine Mills oil field and other assets with non-dilutive funds.”
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.
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