Nostra Terra Oil and Gas Company plc announces that the Grant East #1 well, in the Permian Basin, West Texas, has been temporarily abandoned ("TA"). Following the drilling announcement on the 9th of May, the well was completed in multiple horizons. The well was then fractured stimulated in 3 stages and tested.

On test the well flowed high rates of water with a low oil cut. Several attempts were made to isolate the deeper water producing horizons from the shallower oil zones, but they were unsuccessful. The well has been suspended until a decision is made on what to do with the existing wellbore.

The Grant East #1 could be used as a future injector or re-entered and used as a producer based on results of a future offset well. Presently there is not sufficient treating capacity within the field to handle the associated water volumes, however, as the development progresses and treating capacity is expanded it may be possible to efficiently produce the Grant East #1 as it is currently completed. The Grant East 1 is in the centre of a proven producing field and the well encountered 24 feet of gross reservoir section in the Upper Clear Fork and 108 feet of gross reservoir section in the Lower Clear Fork, which compares favourably with the NTOG operated wells on an adjoining lease (the Grant #5 and #6 wells).Early analysis of the producing results and the produced fluids indicates that the fracture stimulation propagated out of zone and intersected a deeper horizon that is used as a water disposal interval on an offset lease.

This deeper zone is over pressured and of good reservoir quality, which caused the well to flow at high rates of injected water with a low oil cut. Additional technical work needs to be completed to confirm this analysis but early indications, and a look back at pumping rates and pressures while stimulating, provide support for this conclusion.