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UPDATE - Nostra Terra takes 11.62% stake in fifteenth Chisholm Trail well

Last updated: 21:08 18 Mar 2014 AEDT, First published: 22:08 18 Mar 2014 AEDT

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--Adds broker comment--

Nostra Terra (LON:NTOG) is to participate in its fifteenth well in the Chisholm Trail play in Oklahoma, taking an 11.62% stake in the Curly 1-26H (or CT15) well.

The directional well will be drilled to a true vertical depth of 7,000 feet, with total drilling of 11,496 feet.

"Management is keenly focused on increasing production and therefore we are pleased to have secured another well with a large working interest,” said chief executive Matt Lofgran.

“This also helps demonstrate the exciting and dynamic nature of the play.”

It is Nostra Terra's fifteenth well in the Chisholm Trail prospect in Oklahoma. The group has varying interests in eight producing wells and a further seven are either being permitted, drilled or fracked.

Among these, the well results have varied from 258 barrels of oil equivalent per day (boepd) to 555 boepd, on average, in the first 30 days of production.

CT15 represents the company’s third largest stake in a single well to date.

Broker SP Angel describes this latest addition as “a solid step forwards”.

“It underlines what the company is trying to do, and in gaining greater working interests in the wells that it participates in, it will be better able to continue to grow in the future,” the broker said.

“The key is for the Company to now put enough of these types of working interests together in enough productive wells to achieve a critical mass.”

Alden McCall, Nostra Terra’s chief operating officer, explained the peculiarity of the start of operations for the CT15.

Initially it is being operated by Husky Ventures, but will be turned over to the stewardship of Ward Petroleum once the well is complete.

McCall said: "The spud and drilling of Curly 1-27H were executed under a very unusual set of circumstances. Husky Ventures and Ward Petroleum had each proposed wells and challenged each other for operations before the Oklahoma Corporation Commission (OCC).

“However, Husky initiated drilling before a resolution had been reached by the OCC. Following negotiations between the parties, it was agreed that Husky would continue to operate the well through completion and that Ward would assume operations at that point.

“Nostra Terra delayed committing to the well until the resolution had been agreed upon. We are happy that an amicable resolution was achieved and we are delighted to add this high-interest well to our growing portfolio in the Chisholm Trail Prospect."

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