Nostra Terra (AIM: NTOG), an 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
· Company total oil production is currently averaging approximately 120 bopd net
· Production in Pine Mills averaged over 80 bopd in December 2024, confirming the 60% or 30 bopd increase in production first achieved in November of 2024.
· Company is cashflow positive at corporate and operational levels
· Waterflood pressure back up to pre-shut-in levels.
· The Phase 2 workover program has commenced; the first well was put into production on 20 January 2025
Production
Company oil production is currently averaging 120 bopd net, up significantly from 90 bopd due to the contribution from the first phase of the planned workover program at Pine Mills in which NTOG has a 100% working interest ("WI"). Five previously shut-in wells have been returned to production. Pine Mills has averaged over 80 bopd for the entire month of December, with one week exceeding 90 bopd.
In the northern section of the field, where the waterflood was restarted in September 2024, the reservoir pressure has increased back to pre-shut-in levels, and three previously shut-in wells were restarted this week. The full benefit of the waterflood restart has yet to be seen, and further increases are expected over the next month.
Phase 2 - Workover Program
The second phase of the Pine Mills workover program commenced at the end of December 2024, and the first well was returned to production on January 20th, 2025. The workover rig has now moved on to the second well location, and the workover activities are expected to resume before the end of the current week.
Paul Welch, Nostra Terra's Chief Executive Officer, said:
"We are excited to see the field performing at the current levels and expect further increases in production as the Phase 2 workover program progresses. Now that the reservoir pressure in the northern section of the field is back to pre-shut-in levels and three wells are being returned to production, we anticipate further increases in oil production from this area.
Our decision to focus on our Pine Mills asset is delivering value for the Company and our shareholders and I believe there is a lot more potential that has yet to be realized. I anticipate that in 2025, the rewards of focusing on Pine Mills will only increase.
I look forward to reporting on the results of our second worker program."