Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Acquisition of Minority Interest in Texas
7 June 2010
Nostra Terra Oil and Gas Company plc (AIM: NTOG) is pleased to announce that it
has signed an agreement with Sherpa Energy Resources, L.P. to acquire a 2%
interest in an Austin Chalk re-entry well in Lee County, Texas, for US$17,800.
The Austin Chalk re-entry well is a long-standing production well being
redeveloped with the objective of recovering significant additional oil and gas
reserves. The original well was drilled vertically in 1984 and produced oil and
gas for many years from the historically prolific Austin Chalk formation. The
redevelopment plan is to re-enter and horizontally drill a lateral section into
the Lower Austin Chalk, extending up to 2,000 feet from the original wellbore.
This technique has already been used very successfully on a number of similar
wells within the area.
The total cost of drilling the lateral section and equipping the well is
estimated at US$890,000. NTOG's proportionate contribution to these costs has
been satisfied by the consideration referred to above.
Matt Lofgran, CEO of Nostra Terra, said: "Participation in the redevelopment of
this well diversifies and extends our growth strategy into Texas in addition to
Kansas and Utah.
"While our initial stake is just 2%, I am hopeful that this will be a successful
first step in building a substantial, long-term presence in Texas. We intend to
enter into partnerships with other companies that recognise the potential of
horizontal Austin Chalk wells to produce additional commercial reserves using
today's drilling technologies. There are literally hundreds of potential Austin
Chalk candidates in the area to apply these techniques."
Redevelopment of the well is already under way. Drilling and testing of the
lateral section is expected to be completed within three to four weeks. Nostra
Terra will announce the results of the initial well test once they are
available.
For further information, please visit www.ntog.co.uk or contact:
Nostra Terra Oil and Gas Company plc
Telephone: +1 480 993 8933
Matt Lofgran, CEO
mlofgran@ntog.co.uk
Religare Capital Markets
Telephone: +44(0)20 7444 0800
Peter Trevelyan-Clark/Ben Jeynes
Alexander David Securities Ltd
Telephone: +44 (0)20 7448 9820
David Scott/Bill Sharp/Nick Bealer
Announcements made by the Company are available automatically by email to those
who register at www.ntog.co.uk.