Nostra Terra, the AIM quoted oil and gas producer with its portfolio of assets in the USA, is pleased to provide an update on the Company's Verde prospect in Colorado and Chisholm Trail prospect in Oklahoma.
Verde 3
Production testing is now complete and the surface equipment has been sized and installed accordingly. The well, in which Nostra Terra has a 17.54% working interest ("WI"), has now been placed on continuous production. The Company will announce stabilized production rates once these are available.
CT8 (Jones 1-5H)
The well has reached total depth ("TD") and hydraulic fracturing operations are scheduled to begin before the end of the month. Nostra Terra has a 2.00% WI in the well which is operated by Stephens Production Company, LLC.
CT-9 (Mel B 1-33H)
The well has also reached total depth and hydraulic fracturing operations are scheduled to take place before the end of the month. Nostra Terra has a 7.375% WI in the well which is operated by Husky Ventures, Inc.
CT10 (Unnamed 21-1H)
This well is still in the planning and permitting stage and will be drilled to test the Hunton formation. Nostra Terra has a 1.875% WI in the well which is operated by Gastar Exploration USA, Inc.
CT11 (Bugg 1-5H)
Nostra Terra has elected to participate in the 11th well in the Chisholm Trail prospect (CT11). The well is now permitted and is planned to be drilled to test the Hunton formation. Nostra Terra has a 3.53% WI in the well which is operated by Payne Exploration Co.
The development of the Chisholm Trail prospect continues to produce results. Nostra Terra now participates with multiple operators across 21 potential locations in the Hunton formation alone. The company has elected to participate in a total of 11 wells so far and looks forward to participating in further locations. The potential introduction of new wells being drilled to test the Mississippi formation has the ability to double the number of the wells targeted in the Chisholm Trail prospect.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"I'm pleased to report the continued progress on previously announced wells in addition to new wells being permitted and further wells in the planning stages. We're fortunate to have repeated success that comes from being in a resource play, along with the excitement of being in stacked pay reservoirs. The wells currently being drilled have been funded from our existing cash resources, with additional funds allocated for further wells currently being planned and permitted."
Alden McCall, Chief Operating Officer of Nostra Terra, added:
"The Mississippian completion by Alta Mesa has added a very positive new dynamic to the Chisholm Trail play. Formerly we had reported 21 total possible locations but those were just for wells targeting the Hunton formation. Today, new wells targeting the overlying Mississippian formation are being planned, essentially doubling the maximum possible locations on our Chisholm Trail play to 42. We have elected into 10 of the possible 21 Hunton locations but only one of the potential 21 Mississippian locations but we do anticipate that operators will be drilling to test the Mississippian formation in this area, as well."
