Nostra Terra announced that its well located in Mitchell County, Texas in the Permian Basin, (the Twin Wel"), has been successfully drilled and logged with oil shows in all of the target formations.
The Twin Well was drilled to a total depth of 3,200 feet encountering the following formations as expected; the Upper San Andres, Lower San Andres, Glorietta, Upper Clear Fork, Middle Clear Fork, and Lower Clear Fork Formations. The well intersected more than 113 feet of gross oil pay in aggregate across the target objectives. In addition, logging indicated potential commercial quantities of pay below the main target zone in the Lower Clear Fork Formation.
The well reached the bottom-hole target as planned. Drilling was successfully completed on time and below budget.
The production casing has been run and the well cemented. The Company will proceed with completion, a production facility upgrade and tie-in operations, following which it anticipates putting the well put into continuous production.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"We're very excited for the successful drilling and logging of the Twin Well. We encountered each of the target oil-bearing formations that are productive in the area, including all those seen in the original well drilled by the neighboring operator.
In addition to this well, Nostra Terra has numerous proven undeveloped drilling locations already leased in the same area. We'll seek to grow production and reserves significantly both in the Permian Basin, and other areas of our portfolio."
Competent Person Disclosure
John Stafford, a Director at Nostra Terra with over 35 years relevant experience in the oil industry, has reviewed this announcement for the purposes of the current Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in June 2009. Mr. Stafford is a Fellow of the Geological Society and a member of the Petroleum Exploration Society of Great Britain.