NOSTRA TERRA OIL AND GAS COMPANY PLC
("Nostra Terra", "NTOG" or the "Company")
Hoffman Well Starts Production
Update on Boxberger and Bloom Leases
8 February 2009
Nostra Terra is pleased to announce that the first well at its Hoffman lease in
Kansas, USA, (the "Well") has established production.
Hoffman
After 3 days of swabbing production rates of approximately 74 bopd have been
established. An oil purchase contract has been executed for all production at
the Hoffman lease.
The Well is Nostra Terra's initial production well on the Hoffman property.
Redevelopment of the second well at Hoffman has commenced and Nostra Terra
anticipates bringing it into production during the first quarter. The Company
has a 7.8125 per cent interest (rising to 25 per cent once the final
consideration of $275,000 has been paid) in a total of six wells on the Hoffman
property, including at least one salt water disposal well ("SWD"). The property
also includes additional leased acreage allowing for new wells to be drilled at
a later date.
Updates will be provided on reserves and production rates in the future to
reflect fieldwork and production activities.
Boxberger Lease
Further to the announcement made on 6 January, the production facility at NTOG's
first producing well at Boxberger has now been completed and the Company expects
to be able to announce production data later this quarter. Initial oil flows
were very encouraging. It was found, after running a second production test,
that a further salt water disposal well ("SWD") of higher injection capacity
would be needed to achieve the optimum results from this well. This has also
been permitted for substantial excess injection capacity to cover additional
wells on the lease and will be completed shortly.
Bloom
A completion rig is currently at work on the Bloom property. We anticipate
bringing one to two wells into production on this property this quarter.
"We are delighted to have our first well enter production and look forward to
bringing further wells into production shortly. This is just the beginning of an
exciting year," said Matt Lofgran, CEO of Nostra Terra.
The technical information in this announcement has been prepared and approved
for release by Jeremiah Burton of Hewitt Petroleum, Inc. He is a qualified
person as defined in the Note for Mining and Oil & Gas Companies, June 2009, of
the London Stock Exchange.
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
mlofgran@ntog.co.uk
Blomfield Corporate Finance Ltd Tel: +44 (0)20 7489 4500
Peter Trevelyan-Clark/Ben Jeynes
Alexander David Securities Ltd Tel: +44 (0)20 7448 9820
David Scott/Bill Sharp
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. The Company's US properties are
all located in Kansas, in the Central Kansas Uplift (CKU). Bloom is located in
Rice County (not Russell as previously reported), Boxberger in Russell County,
Hoffman in adjacent counties of Barton and Russell, and Koelsch (where the
Company has an option) in Stafford County.
Hoffman
Nostra Terra holds a 7.8125 per cent (rising to 25 per cent once the final
consideration of $275,000 has been paid) 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 Rice County,
Kansas.
Boxberger
Nostra Terra holds a 50 per cent working interest in eleven wells, including at
least two salt water disposal wells, 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
(ENDS)