Nostra Terra Oil & Gas Austin Chalk Re-entry A Success

16th Jun 2010 07:33

LONDON (Dow Jones)--Nostra Terra Oil and Gas Company PLC (NTOG.LN), said Wednesday that a new lateral section extending just over 1900 feet horizontally from the original wellbore has been drilled into the Lower Austin Chalk. MAIN FACTS: -In an initial 24- hour flow test the redeveloped well produced at a gross rate of 994 barrels of oil per day or bopd and 804,000 cubic feet of gas per day or mcfd. -The well has sustained those production levels during the initial 3-day production period although we anticipate production levels to decrease in line with the relatively steep decline curves typical of the area and so will provide an update at a later date. -The re-entry included the prospect of two different laterals. The first lateral in the so-called upper "B Zone" and the second in the lower "A Zone". -Within the first few days of drilling, indications of producibility in the B zone were so strong that the decision was made to stop drilling and put the well into production sooner. -The drilling of the second lateral into the lower "A Zone" has been deferred as a target for a later date. -Historically, Austin Chalk producing wells have delivered at high initial rates but with relatively steep decline curves, and this is also generally the case when modern horizontal drilling techniques are used. -The current well is expected to remain in production for several years before its output falls below commercial levels, and Nostra Terra intends to grow its presence in the Austin Chalk redevelopment play in view of the potential rapid payback and high ROI it can generate at relatively low risk and operating cost. Shares closed Tuesday at 0.48 pence. -By Razak Musah Baba, Dow Jones Newswires; +44-20-7842-9275; [email protected] (END) Dow Jones Newswires June 16, 2010 02:33 ET (06:33 GMT)