---ADDS BROKER COMMENT---
Nostra Terra (LON:NTOG) is very happy with progress at the Chisholm Trail prospect, where it is participating in 18 wells, and another one is producing at better than expected rates.
The Willson 3-8-5H well (CT-17) well has now been completed and averaged 440 barrels of oil equivalent per day (BOEPD) over the most recent 10 days. Nostra owns a 2.92% working interest in the well.
Meanwhile, the firm has chosen to participate in the Chesapeake Anderson 21-18-6 3H (CT-18), its 18th well in the Oklahoma play. An initial horizontal well will test the Oswego formation.
The estimated total well cost is US$4,419,000 and Nostra has a 1.875% working interest, which is around US$82,875 net to the firm.
Elsewhere, the CT-14 (Gant 1-22H) well has also been completed and has begun flowing back frack fluid, oil, and gas. Although the well is producing oil and gas, it is yet to reach peak levels.
Nostra chief executive Matt Lofgran said: "We're very happy with the progress at Chisholm Trail. Another well is performing in excess of original projections and we are seeing another potential dimension added with a third formation being drilled by Chesapeake, one of the largest independent oil and gas companies in the United States.
"It's been two years since the first wells began drilling in the prospect. We've elected to participate in 18 wells with 8 different operators, and now in 3 different formations. Of the 18 wells 11 have already been drilled (with more being planned) and all are commercial producers, with the vast majority surpassing management's expectations.
"Following an inexpensive rework CT-3 production performed at more than twice management's expectations. The Hunton formation within the area has proven to be a resource play, where repeatable results are found. As a result we're encouraged by the planned rework of CT-14 in the near future, where we have a 20% working interest."
City firm Northland rates the shares a 'buy', targeting 0.46p, compared to a current price of 0.235p.
Analyst Andrew McGeary noted that the CT-14 well was Nostra’s biggest participation to date and, as such, would have some bearing on this year’s results.
"There is still some headroom in the CT portfolio with a further five wells at various stages of planning and permitting including another 20% working interest well, CT-16," he said.
"Whilst a modest working interest the CT18 well is interesting in that it could help establish the Oswego formation as a third play on the Chisholm Trail acreage in addition to the Hunton and Mississippi’s Lime formations."