Drilling Commenced at Nostra Terra's 3rd Oklahoma Well

Nostra Terra announced that the third horizontal well in Oklahoma has been spudded. The first and second horizontal wells have finished drilling and are awaiting completion.

The first horizontal well is within the Warrior Prospect and operated by Crown Energy Company. The drilling stage has finished according to plan and it is anticipated that completion will be underway within the coming weeks. NTOG has a 10 percent working interest in this prospect.

The second horizontal well is within the Bale Creek Prospect and operated by Pathfinder Development Capital, LLC. The well was spudded within a few days of Warrior but experienced technical challenges while drilling which were overcome. Drilling of the Bale Creek first horizontal well has now been finished and it is anticipated that the well will also be completed within the coming weeks. NTOG has a 30 percent working interest in this prospect.

The third horizontal well has just spudded and is also within the Bale Creek Prospect, operated by Pathfinder. Both Pathfinder and NTOG are confident that the knowledge gained from the first horizontal well will enable them to proceed with their drilling program as previously designed and on schedule. The drilling of this horizontal well should be finished within the next three weeks whereupon the completion of the well will follow.

Alden McCall, Chief Operating Officer of Nostra Terra added: "There are three critical stages in the drilling of horizontal wells that can present particular technical challenges. The first of these is to build the curve from the vertical portion into the horizontal leg. The second is to keep the drill bit within the targeted pay zone for 2,000 feet or more of drilling. The challenge of the final stage is the process of "completing" the well to bring it into production.

"While the first horizontal well in Warrior proceeded according to plan, we encountered delays in drilling the first horizontal well at Bale Creek. The drill string became stuck several times. This required re-drilling of a section of the well just at the beginning of the curve, which inevitably slowed our progress. We learned from this experience and modified the drilling plan accordingly.

"We are pleased that the first two horizontal wells have been drilled successfully and that the third is underway. We look forward to updating on further progress and announcing the results of all three horizontal wells in the coming weeks."