Nostra Terra Reworks Kansas Wells

Nostra Terra has made considerable progress in reworking the wells on its Boxberger, Hoffman and Bloom properties in Kansas, and has sold its first oil from all three properties. As of May 25, the combined production rate from 7 reworked wells was 73 barrels of oil per day (bopd) gross, which is gradually increasing as the performance of each well continues to be optimized.

Having accelerated activities that were previously delayed by the severe winter weather, the Company is now cash flow positive operationally on the basis of current production and pay out levels, and is confident that it will achieve its previously stated objective of bringing 15 wells online by the end of 2010.

A status summary on each of the three properties currently being redeveloped by Nostra Terra, in partnership with Hewitt Petroleum, Inc (HPI) as operator, follows:


A new salt water disposal (SWD) well has been drilled and permitted and is now operational. One production well has been reworked and is currently producing at a limited rate of approximately 13 bopd. Although this recovery rate continues to increase slowly, it is currently below expectations. To bolster immediate production at Boxberger, a second well was recently brought on line on a small
pump jack and is currently producing an additional 2 bopd. Later this year, a third production well will be brought on line with a large electrical
submersible pump (ESP). It is hoped that this will reduce the hydrostatic head within the reservoir, thereby increasing the oil cut in the fluids extracted from each of the Boxberger wells and also making it possible to access the additional oil-bearing zones discovered in October 2009 that are not currently being produced.


Two of the existing five production wells on the Hoffman property have been reworked, including the radial jet enhancement treatment described in the Company's previous operations update. Despite this treatment, oil flows from the two wells have so far been very modest (approximately 5 bopd combined). Nostra Terra and HPI continue to explore options to improve the performance of these wells and recover the considerable oil reserves they believe remain on the
Hoffman property.


The first Bloom well was brought back on line, without significant reworking, in mid-April, followed by two more in mid-May. A fourth well is being reworked and is expected to be brought into production within the next month. The first three Bloom wells are currently producing a total of 53 bopd, which is expected to rise as the hydrostatic head within each well gradually reduces as fluids are drawn from the reservoir.

Matt Lofgran, CEO of Nostra Terra, commented, "Operations are now progressing well, and while initial results from some of the re-entered wells have been disappointing, others are performing as expected. We remain confident that flow rates will steadily improve as we learn more about these mature reservoirs and how best to stimulate them. For the first time in its history, Nostra Terra is now cash flow positive, and we expect revenues to increase significantly going forward."

Utah exploration

In addition to its redevelopment activities in Kansas, Nostra Terra has participated in an exploration venture in Northern sector of the Paxton Thrust of the Central Utah Overthrust. Drilling of the Liberty #1 exploratory well has now been completed, and the results are being evaluated by the Company and its partners, HPI and Freedom Oil & Gas. Further information about this venture will be made available in due course.

Final Results Timetable

The Company expects to announce its results for the year ending 31 December 2009 in the week commencing 31 May 2010.

The technical information in this announcement has been prepared and approved for release by Jeremiah Burton, Hewitt Petroleum, Inc. Geologist. He is a qualified person as defined in the Note for Mining and Oil & Gas Companies, June 2009, of the London Stock Exchange.