Nostra Terra Oil & Gas Company PLC NTOG enters a Strategic Partnership (7694Z)
16 Gennaio 2024 - 8:00AM
UK Regulatory
TIDMNTOG
RNS Number : 7694Z
Nostra Terra Oil & Gas Company PLC
16 January 2024
16 January 2024
Nostra Terra Oil and Gas Company Plc
("Nostra Terra" or "the Company")
NTOG enters a Strategic Partnership for Production Growth
Opportunities in East Texas.
Nostra Terra (AIM: NTOG), the international oil & gas
exploration and production company with a portfolio of development
and production assets in Texas, USA, is pleased to announce,
further to its announcement on 11 January 2024, the signing of a
Strategic Partnership with a subsidiary of Cypress. The Partnership
will allow the two companies to use an extensive, modern, regional
3D Seismic data set to jointly develop production growth
opportunities across an expansive area of East Texas where the
Companies have already experienced great results.
Highlights:
-- Partnership Area includes 80,000 acres (324 km(2) ) of modern 3D seismic
-- Area is more than 30x larger than Pine Mills and includes multiple counties in East Texas
-- NTOG will operate any new locations and have an 87.5% working interest
-- Initial focus will be the sub-Clarksville horizon, successfully developed in the Fouke wells
-- All regional producing horizons are included in the agreement
(in addition to the initial target)
On 22 April 2020, Nostra Terra entered into a farmout agreement
with Cypress Minerals for an 80-acre portion (the "Well Area") of
Nostra Terra's 2,400-acre holding at Pine Mills. Cypress Minerals
LLC and Cypress Production Inc (together "Cypress") had acquired 3D
seismic covering the Well Area and identified several potential
well locations. Following this, Cypress drilled the two successful
"Fouke" wells in the Pine Mills field.
These wells have produced over 130,000 barrels of oil (100% oil,
no water) and continue to produce at strong rates. The Fouke 1 well
reached payback rapidly while on a restricted allowable production
rate, due to field rules in place at the time of discovery. After a
successful petition by the operator to increase the field allowable
rate, the Fouke 2 well reached payback less than three months from
production start-up. These well results have provided superior
returns for the Company and have been the subject of detailed
technical study since their completion.
As a result of these efforts, Nostra Terra and Cypress have
entered into a broad strategic partnership whereby the companies
will work together using this 3D seismic data set to identify
additional Fouke-like drilling locations. This partnership is
regional in scope and will cover the entire 80,000 acres of
existing 3D seismic data that Cypress has acquired. This represents
an area more than 30 times the size of Nostra Terra's 2,400-acre
Pine Mills oilfield. Additionally, any locations developed through
this partnership will be operated by Nostra Terra with a minimum of
an 87.5% working interest. This is a significant increase to the
32.5% working interest the Company retained in the original Fouke
wells. The Company will be responsible for the cost and operations
while Cypress will be carried in the initial three wells along with
a small override.
The initial target of the exercise will be the sub-Clarksville
horizon found in the Fouke wells, but the technical focus will not
be limited to this horizon alone. The entire Woodbine sequence and
several others that have been found productive within this vast
80,000-acre area have been included in this partnership.
Matt Lofgran , Nostra Terra's Chief Executive Officer, said:
"I'm very pleased to announce signing this agreement with our
partners at Cypress. The success of the Fouke wells in our mature
Pine Mills asset has been the focus of our technical efforts over
the last several years. This work demonstrated that with the
benefit of modern 3D seismic, the abundance of existing well
information and very detailed geologic mapping work, prospects can
be generated with the potential for Fouke-like results across an
extensive area. Undrilled fault blocks, like Fouke, can now be
identified, profitably developed and put into production in short
time frames, given their locations in and around these mature
assets. The area's future potential may exceed its past performance
based on the work done to date. This is an exciting time for the
Company and I look forward to reporting on our results in
subsequent periods."
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as
it forms part of UK Domestic Law by virtue of the European Union
(Withdrawal) Act 2018. Upon the publication of this announcement,
this inside information is now considered to be in the public
domain.
For further information, contact:
Nostra Terra Oil and Gas Company
plc
Matt Lofgran, CEO Tel: +1 480 993 8933
Beaumont Cornish Limited
(Nominated Adviser)
James Biddle/ Roland Cornish Tel: +44 (0) 20 7628 3396
Novum Securities Limited (Broker)
Jon Belliss Tel: +44 (0) 207 399 9425
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END
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