NOSTRA TERRA OIL AND GAS COMPANY PLC
("Nostra Terra", "NTOG" or the "Company")
Hoffman - Funded, Development Begins
9 November 2009
AIM Symbol: NTOG
Nostra Terra is pleased to announce the funding and commencement of fieldwork
for the Hoffman property.
Hewitt Petroleum, Inc (HPI), Nostra Terra's JV partner in the Hoffman property,
has notified Nostra Terra that HPI has now completed its funding so that it can
commence development of the Hoffman property. Within the next 10 business days,
weather permitting, production operations will commence with two additional
workover rigs on the property. This is in addition to the existing rig at the
Boxberger property.
As announced on 15 July 2009, the Hoffman property, located in Barton and
Russell County, Kansas, consists of 5 wells to be placed into production (of
which 2 are currently plugged) and 1 salt water disposal well. The property
also includes additional leased acreage allowing for new wells to be drilled at
a later date. Nostra Terra owns a maximum 25% working interest in the entire
property*.
The estimated total project cost including acquisition and development is
US$1,600,000 of which 25 per cent is to be met by NTOG. NTOG has already paid
US$125,000 and expects to pay the final consideration of US$275,000.
*If revenue is generated from production on the project prior to NTOG having
made the final consideration payment of US$275,000 for their interest, then the
revenue shall be adjusted on a prorate basis for the amount that NTOG has
actually paid.
"It's exciting to begin operations on Hoffman. Having the second of our three
fields being developed is a significant milestone for Nostra Terra," said Matt
Lofgran, CEO of Nostra Terra. "The previously negotiated contract allowed for
Nostra Terra to have a large ownership, in a great field, on terms not available
today. Altogether the Hoffman and Boxberger properties, in which the Company
has interests, entail the re-working of 17 wells."
Further announcements on progress at the properties will be made in due course
and are 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
Blomfield Corporate Finance Ltd Tel: +44 (0)20 7444 0800
Peter Trevelyan-Clark/Ben Jeynes
Alexander David Securities Ltd Tel: +44 (0)20 7448 9820
David Scott/Nick Bealer
Notes to Editors:
Nostra Terra Oil & Gas Company plc (AIM: NTOG) is an emerging oil and gas
exploration and production company with newly acquired assets in established
producing regions within the US mid-continent.
Hoffman
Nostra Terra holds a 25 per cent working interest in five production wells and
one salt water disposal well on the Hoffman lease, located in Barton County and
Russell County, Kansas.
Bloom
Nostra Terra holds a 50 per cent working interest in nine production wells and
two salt water disposal wells on the Bloom lease, located in Russell County,
Kansas.
Boxberger
Nostra Terra holds a 50 per cent working interest in eleven wells, including at
least one salt water disposal well, on the Boxberger property, located in
Russell County, Kansas.
Koelsch (option)
Nostra Terra also has an option to purchase from HPI - 50 per cent working
interest in two production wells and one salt water disposal well in the
Koelsch lease, also located in Strafford County, Kansas.
Ukraine
Nostra Terra also holds an interest in a license to further explore and develop
the onshore Oktyabrskoe oil field in Ukraine. The advanced recovery technology
which the Company and its joint venture partner are exploiting in the US mid-
continent may eventually be used to enhance the economic viability of this
Ukrainian reservoir but rapid and profitable development of its US business is
now Nostra Terra's primary focus.
For more information please visit: www.ntog.co.uk