Nostra Terra, the international oil and gas exploration and production company focused on its Pine Mills producing asset in Texas, USA, is pleased to provide the following update.
Highlights
· Working interest partner has agreed on a location to drill the Fouke 3 well (32.5% NTOG), with planning ongoing and operational work likely to commence in Q3 2025.
· Four of the five Pine Mills Phase 2 well workovers are now complete.
· Total Company oil production is currently averaging ca.130 bopd net.
· Production from Pine Mills, currently at 90 bopd net, is expected to increase to between 100 and 135 bopd net on completion in a fortnight following field electrical upgrades.
· Encouraging results seen from the waterflood restart where two pumping units have been upsized to handle increased fluid flow in the north of the field.
· An additional Electrical Submersible Pump ("ESP") has been ordered to handle increased volumes in a third well in the north of the field.
Paul Welch, Nostra Terra's Chief Executive Officer, said:
"Our partner in the Fouke area, Cypress Operating Co., has agreed to drill a third development well at the location proposed by our technical team. This location, as mapped, has been estimated to contain over 300,000 barrels of oil in place and, if successful, can be produced at the maximum new field allowable rate of 124 bopd, the same rates at which each of the Fouke 1 and 2 wells initially produced. Planning for this new well has commenced, and a team was in the field this week looking at potential surface drilling locations. We look forward to working with our partner to get this well drilled as soon as practically possible."
"Additionally, our Phase 2 workover program continues to progress with a workover rig now on the last well of the 5-well program. Production from Pine Mills is expected to increase to between 100 and 135 bopd net on completion in a fortnight following field electrical upgrades."
"We are also starting to see volumes increase in the north of the field due to the restarted waterflood in the area. Two pumping units have been upsized, and a third well, with an ESP, will be upgraded to handle increased fluid flow in the area. We are greatly encouraged by the positive response we are seeing and are significantly increasing the fluid treating capacity in the near term to deal with that opportunity. These upgrades will be paid for out of NTOG's existing cash reserves."
"Finally, it has been both a busy and rewarding time as we successfully increase oil production at Pine Mills to levels we have not seen since it was first acquired five years ago. We expect to complete the Phase 2 workover program and have all the wells online and producing ahead of the next field debt re-determination by our facility provider at the end of the quarter. I look forward to reporting on the final results of the Phase 2 workover program once finished."
Production
Company oil production continues to average 130 bopd net, with the Pine Mills wells contributing about 90 bopd net. This rate is below the field's current production capacity due to the ongoing workover activity in the field. Bringing online wells which have been idle for many years requires field infrastructure to be upgraded, primarily electrical power systems, and these upgrades require portions of the field to be shut down while they are undertaken. These shutdowns reduce the field's overall daily production volumes. The electrical upgrades and final workover will be complete in a fortnight, after which no further scheduled shutdowns are planned, and the average daily rates from the Pine Mills alone are expected to increase to between 100 and 135 bopd net for the foreseeable future.
Fouke 3 Well
All partners have technically agreed on the Fouke 3 well location. The operator, Cypress Drilling, will now go out to tender for a drilling rig, stake and permit the location, and then prepare a detailed budget and timeline for the well. After which, the well location construction will be undertaken and the drilling permit obtained. The well is targeted to be drilled in Q3 2025 but is dependent upon rig availability.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.