Nostra Terra announced that the Fouke 2 well (NTOG 32.5% WI), at the Company's Pine Mills oil field in east Texas, has been completed, tested and is now on production. The Fouke 2 well was completed in two reservoir sections within the Cretaceous Woodbine Formation. A total of 23 ft of pay was perforated within these two sequences only, one of which was found in the offset Fouke 1 well.

After completion, the well was tested and flowed at a rate of 145 bopd over a 24- hour period with a 0% watercut. The well has now been placed into continuous production and oil sales from the Fouke 2 have commenced. This production rate exceeds that of the offset Fouke 1 well by 77% which has been limited by field rules (allowable) to 82 bopd per well.

For more than a year the Fouke 1 has produced oil at this allowable rate without decline and not produced any water. As a result of the past performance of the Fouke 1 and the test rate of the Fouke 2, the operator plans to request a substantial increase in the field allowable rate so that both wells can be produced at much higher and more efficient rates. A decision is anticipated later in the year.

During the interim period the operator plans to produce each well at circa 140 bopd, which is above the current allowable cap, to obtain sufficient technical information to support the increased field allowable.