AIM-listed Nostra Terra, an international oil and gas exploration and production company focused on its Pine Mills producing asset in Texas, USA, has provided a production and operastions update.
Highlights
- Company total oil production is currently averaging ca.130 bopd net.
- Three of the five Pine Mills Phase 2 well workovers now complete.
- Since the start of the Phase 2 work-over program, Production at Pine Mills recently hit a new peak rate of 106 bopd (WI 100%), a near doubling since workover programs commenced.
- Production at the Fouke area continues to produce at 100 bopd gross (WI 32.5%), with no decline since May 2024.
- Early signs show a positive waterflood response in the north end of the field.
- The company continues to be cashflow positive at corporate and operational levels.
Paul Welch, Nostra Terra's Chief Executive Officer, said:
'We are very excited to be producing a total of 130 bopd net that includes production of over 100 bopd from Pine Mills for the first time in many years, almost double the rate the field produced before the start of the workover programs. This gives us confidence in our decision to focus investment in our Pine Mills asset where we have a 100% working interest.
'Additionally, the Fouke area in which we have a 32.5% working interest continues to produce at 100 bopd gross, with no decline since May 2024. We have initiated a technical discussion with our partner on the location of a potential Fouke 3 well. We expect this technical discussion to move quickly, with a decision on a location expected to be made in Q2 2025.
'I am very excited about the future potential of the Pine Mills asset, and I look forward to reporting on the results of the remainder of the workover program and results of the Fouke area technical work with our partner.'
Production
Company oil production is currently averaging 130 bopd net (average of five days to 17 February 2025), up significantly due to the contribution from the first and second phases of the planned workover program at Pine Mills in which NTOG has a 100% working interest ("WI"). Since September 2024, seven previously shut-in wells have been returned to production with one of the worked-over wells still shut in, waiting for a pumping unit to be delivered.
In the northern section of the field, where the waterflood was restarted in September 2024, the reservoir pressure has increased back to pre-shut-in levels, and production has started to increase. However, one of the wells, which is expected to benefit the most, is awaiting the installation of a new pumping unit, as the previous unit was undersized and couldn't handle the increased flow rates. That installation will be completed by the end of February 2025. Once installed, all eight of the work-over wells will be on production, and further production increases are expected.
Phase 2 - Workover Program
The second phase of the Pine Mills workover program commenced at the end of December 2024, and the first well was returned to production on 20 January 2025. The rig completed two additional workovers and was released while the field crew installs new pumping units on these last two wells and upgrades the pumping unit in the northern section of the field.
While undertaking the workover programs, it became apparent that some of the existing surface processing equipment was undersized for the increased fluid volumes these wells can now deliver. Surface equipment is now being upgraded to allow the production of greater fluid volumes with expected corresponding higher oil production rates; we now expect to exceed our initial estimates for increased oil output prepared at the time of commencing the workover program.
Source: Nostra Terra Oil and Gas
