Acquisition of Interest in 35,000 Acres
AIM:NTOG
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Acquisition of Interest in 35,000 Acre Prospect
18 May 2015
Nostra Terra (AIM:NTOG), the oil and gas exploration and production company with a growing portfolio of assets in the USA, is pleased to announce the acquisition of a 1% working interest in the San Miguel Prospect, comprising 35,000 acres in South Texas.
This acquisition shares similar characteristics to the previous acquisition of interests in a 20,000 acre prospect (the Don Pedro Prospect), as announced 27 April 2015.
Highlights:
· Initial well already spud
· Shallow oil targets with associated liquids-rich natural gas
· Extensive regional structural mapping
· Up to nine stacked-formations are prospective to horizontal drilling
· Proven success of horizontal drilling in the area
This represents Nostra Terra's second acquisition this quarter, with plans to acquire additional interests if appropriate. The cost of drilling the initial well, and further wells planned this year, will be funded from internal cash flow.
The first well has already spud with completion anticipated within one month. It will be drilled to a depth of approximately 4,500 feet and will be extended horizontally approximately 5,100 feet. The continuous drilling program is designed to drill one well at least every four months.
The hydrocarbon province of South Texas is one of the most prolific in the United States. It offers many potential targets, such as the Eagle Ford, Escondido, Olmos, San Miguel, Austin Chalk, Buda, Georgetown, Edwards and other formations, often in excess of 250 feet thick in pay. Importantly, the Eagle Ford is considered to be the original source rock for the hydrocarbons in most of the stacked pays along the trend. The Eagle Ford extends more than 50 miles wide and 400 miles long (equivalent to 870 million acres).
The asset further enhances Nostra Terra's portfolio of wells in areas where proven horizontal drilling and completion technologies are being applied to known reservoirs.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"This is our second acquisition in a matter of weeks in Texas. The San Miguel Prospect also has a continuous drilling program at a pace of no less than one well every four months. Between this prospect and the previous acquisition we should see a new well every other month. This compares very well with Chisholm Trail where over the last few years we announced 18 wells in a period of 26 months, with a number of operators.
The Board continues to pursue additional acquisitions with the intention of having a material impact on production and reserves going forward."
For more information please visitwww.ntog.co.uk or contact:
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Nostra Terra Oil and Gas Company plc Matt Lofgran, CEO mlofgran@ntog.co.uk |
+1 480 993 8933 |
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Sanlam Securities UK Limited (Nominated adviser and broker) Lindsay Mair / James Thomas / Jamie Vickers |
+44 20 7628 2200 |
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Gary Middleton (PR) |
+44 7951 603 289 |
This information is provided by RNS
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