Nostra Terra Oil and Gas Company plc
("Nostra Terra", "NTOG" or the "Company")
Reserve Estimates and Valuation of Boxberger and Hoffman,
Oil and Gas Properties in Kansas, USA.
2 September 2009
The Board of NTOG are pleased to present the findings of an updated reserve
report for the Boxberger and Hoffman properties in Kansas, USA. NTOG entered
into definitive agreements on 20 August 2009 with Hewitt Petroleum, Inc.
("HPI") for the purchase and exploration of the Boxberger and Hoffman
properties as previously announced on 21 August 2009 and 15 July 2009.
Highlights from the reserve reports on each property are found below.
Boxberger - Reserve Summary
The Boxberger property and wells are located in the Gorham Field, one of the
largest fields in Kansas, having produced almost 100,000,000 barrels of oil
since its discovery in 1926. Highlights of the recent reserve summary on the
wells (on which NTOG has a 50% working interest in) include:
· 1,659,191 BBLS oil proven reserves (1,430,982 Proved Developed, Producing +
228,209 Proved Developed, Behind Pipe);
· 804.708 MMCF gas proven reserves (694.026 Proved Developed, Producing +
110.682 Proved Developed, Behind Pipe);
· the report excludes any probable reserves; and
· the present value of the property attributable to NTOG, at a 10% discount
factor, is US$18.5 million (based on oil @ $60.00 per barrel).
Hoffman - Reserve Summary
The Hoffman property and wells are located in the Trapp Field, having produced
over 250,000,000 barrels of oil since its discovery. Estimates of recovery
efficiency from the original oil in place on the property are in the range of
12.5 to 35.0 percent. Highlights of the recent reserve summary on the wells (on
which NTOG has a 25% working interest in) include:
· 834,000 BBLS oil proven reserves (all Proved Developed, Behind Pipe);
· 404.490 MMCF gas proven reserves (80.898 Proved Developed, Producing +
323.592 Proved Developed, Behind Pipe);
· the report excludes any probable reserves; and
· the present value of the property attributable to NTOG, at a 10% discount
factor, is US$3,349,298 (based on oil @ $60.00 per barrel).
Further data regarding the properties can be found on the Company's website
(www.ntog.co.uk).
"Both properties fit within NTOG's plan of acquiring and producing oil and gas
from producing properties with significant reserves that have been overlooked in
the past. The development plan for the Boxberger property is complete. Now
that we have raised funds for the development we are excited to move into the
field and start work this week" stated Matt Lofgran, CEO of Nostra Terra.
The technical information in this announcement has been prepared for and
approved for release by W. A Alexander. Jr of W. A. Alexander, Jr. Oil & Gas Consulting.
He is a qualified person as defined in the Note for Mining and Oil & Gas
Companies, June 2009, which forms part of the AIM Rules for Companies of the
London Stock Exchange.
Further announcements on progress at the properties will be made in due course
and will be made available automatically by email to those who register at
www.ntog.co.uk.
For further information contact:
Nostra Terra Oil and Gas Company plc Tel: +1 480 993 8933
Matt Lofgran, CEO mlofgran@ntog.co.uk
Blomfield Corporate Finance Ltd (Nomad) Tel: +44 (0)20 7489 4500
Alan MacKenzie/Peter Trevelyan-Clark/Ben Jeynes
Alexander David Securities Ltd (Broker) Tel: +44 (0)20 7448 9820
David Scott/Jon Levinson