LONDON (ShareCast) - (Sharecast News) - Texas-focussed oil and gas explorer and producer Nostra Terra announced on Tuesday that the Grant East 1 well in the Permian Basin of West Texas spudded on 29 April.

The AIM-traded firm has a 100% working interest in the Grant East lease, with the well the first of three permitted locations to be drilled to date.

Drilling was expected to reach a total depth of 3,500 feet, and was anticipated to take about seven days.

The primary objective was the Clear Fork Formation, with the secondary objective being the up-hole San Andres Formation, both of which were productive in offset wells.

Once drilling reaches total depth, the well would be logged and evaluated.

If successful, completion operations would begin immediately, consisting of a fracture stimulation treatment followed by the installation of artificial lift equipment, and then testing.

At the same time, a central production facility and tank battery would be constructed to handle both the Grant East 1 production and any additional production established on the lease.

From spud to production start-up was expected to take between 30 and 45 days in the case of success.

"This is a significant development for the company - more than just the Grant East 1 well, we now have a 100% working interest in a prolific area with permits to drill up to three new wells in 2022," said chief executive officer Matt Lofgran.

"The Grant East lease provides Nostra Terra with a long-life, low-cost production opportunity with multiple drilling locations.

"Most importantly, like Grant East 1, all future wells are forecasted to be funded internally, without the need for further dilution."

At 1140 BST, shares in Nostra Terra Oil and Gas Company were up 11.72% at 0.72p.

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