Business
Increased Interest In New Colorado Well
Increased Interest In New Colorado Well.
About this update from Buccaneer Energy Plc
[{"type":"text","content":"\n \nRNS Number : 5905M Nostra Terra Oil & Gas Company PLC 28 August 2013 \n \n\nNostra Terra Oil and Gas Company plc\n(\"Nostra Terra\", \"NTOG\" or the \"Company\")\n \nWorking Interest Increased In Third Colorado Well \n \n \nNostra Terra, the AIM quoted oil and gas producer, with a growing portfolio of horizontal and vertical drilling projects in the USA, is pleased to give an update on the Verde Prospect where it has a historical 16.25% working interest (\"WI\"), located in south-eastern Colorado.\n \nHighlights\n· WI in Third well increased to 17.54% from 16.25%\n· Third well permitted, to be drilled in the next 60 days\n· 200% return on Verde 1 expected by year end\n \nAs previously announced, following the rapid payout of the initial well, additional leasing was targeted along with drilling to expand the size of the prospect. Leasing for the next drilling location has now been finalized with Nostra Terra increasing its WI in the well to 17.54%. Permitting is in process and the well (\"Verde #3\") is scheduled to be drilled within the next 60 days.\nAlthough core and log interpretations of the second well were encouraging, extensive testing produced too much water for the well to be deemed commercial. The well has been reserved as a water injection well for the future potential water flooding of the project. An injection well was part of the future development thus not resulting in a loss of investment.\nThe first well in this project reached payout in less than one year, it continues to be a strong producer with cumulative net proceeds to Nostra Terra estimated to reach 200% of the Company's original investment, by year-end. Due to the strength of the prospect the Company plans to continue to participate in further development.\nAlden McCall, Chief Operating Office of Nostra Terra, added:\n\"Our first well in the Verde Prospect reached payout in approximately ten months of production, which is outstanding. We continue to be very pleased with this project and are looking forward to the results of the third well. Core analysis of the second well indicates that it will make an excellent injection well when the project is water-flooded in the future, and our investment in the well will be recover...