Nostra Terra Oil and Gas Company plc (LON:NTOG) has updated on the completion of its well in Texas, located in the Permian Basin and stated its intention to start the permitting process at a new well.
Nostra Terra said in a statement that in November, the Twin Well was successfully drilled and logged, intersecting more than 113 feet of gross oil pay in aggregate across the target objectives.
It said logging indicated potential commercial quantities of pay below the main target zone in the Lower Clear Fork Formation, adding that The Twin Well is consistent with information that Nostra Terra received from a neighbouring operator prior to drilling.
"This data was used to plan the completion process and the Company is encouraged by the results. The next steps of the completion process, including commercial flow testing, are scheduled for the beginning of January," it said.
The company also said that it is in the process of securing a new Senior Lending Facility, allowing it to accelerate its strategy of developing its lower risk reserves at Pine Mills and across its Permian Basin acreage using non-dilutive funds.
In anticipation of securing the Senior Lending Facility early in 2018, Nostra Terra intends to initiate the permitting process for the drilling of an additional new well at one of the Company's 24 drill ready locations across its Permian acreage.
"The permitting process is not dependent on securing the Senior Lending Facility. However, it is the Company's intention to position itself to be able to commence drilling at the new well as swiftly as possible, assuming it receives the approval it expects from the bank," it added.