30th Oct 2014 09:21
LONDON (Alliance News) - Nostra Terra Oil & Gas Company PLC saw its shares rise early Thursday after it said production increased 80% in the third quarter compared with the second quarter, averaging 84 barrels of oil equivalent per day during September alone.
The oil and gas explorer with a growing portfolio of assets in the US, said the total production net to its working interests in the wells hit 2,511 barrels of oil in September, the highest of any month so far this year, earning revenue of USD201,817.
"Exploration and production activity continued to grow across the portfolio of prospects during the period, in addition, the company acquired a new asset, the White Buffalo Prospect in Wyoming, USA, where Nostra Terra owns a 100% working interest," it said in a statement.
The company has been building a production and revenue base by taking stakes in various wells in Oklahoma, Texas and Colorado in the US. It has now moved on to trying to develop its own outright production base, taking all the interest in the White Buffalo potential fracking prospect in Wyoming.
Looking ahead, Nostra Terra said it hopes to report positive results for the CT-14 and CT-16 wells. It has a 20% working interest in both wells, and their production could have a "significant" impact on its overall production.
It said it is also looking forward to getting results from two new exploration wells: the CT-18 well that will test the Oswego formation in the Chisholm Trail Prospect and, if successful, will begin to prove up a third horizontal play within the prospect; and the first exploration well within the High Plains project.
"Our goal and guideline has been to build a solid platform of production revenue from which to launch programs that are more exploratory in nature. We have participated in numerous wells that have reached payout in three years or fewer and are very pleased that two of the earliest large-interest wells in Chisholm Trail reached payout by the end of July, or roughly within 18 months," Chief Operating Officer Alden McCall said in a statement.
"We anticipate being able to announce new production from some of these wells shortly which could have a material impact on the company, providing a good end to the year and a solid base on which to build as we transition our portfolio further towards our own operations, including the White Buffalo prospect that we currently own 100%," Chief Executive Matt Lofgran added.
Nostra Terra shares were up 8.0% at 0.286 pence Thursday morning, one of the best-performing stocks on the AIM All-Share index.
By Steve McGrath; [email protected]; @stevemcgrath1
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