9th Jul 2015 07:07
LONDON (Alliance News) - Nostra Terra Oil & Gas Co PLC on Thursday said it has signed a farm-out deal with Koch Exploration Co LLC, a unit of US conglomerate Koch Industries Inc, for the Paw Paw Prospect in the Big Horn Basin in Wyoming.
Nostra will operate 2,440 net acres of the prospect and will earn a 100% working interest through drilling the first well at the site. The overriding royalty interest for the site will be retained by Koch, Nostra said.
Nostra expects the test well to cost USD1.2 million and expects it to spud in the fourth quarter.
"This prospect also represents the type of opportunity we have previously told shareholders and investors we planned to target, being conventional wells in proven basins, where economics are attractive even at lower oil prices. Acquisitions such as these should help lower our risk profile and actively protect the future of the company," said Matt Lofgran, Nostra's chief executive.
Shares in Nostra rose on the news in early trade, up 10% to 0.1598 pence to be among the best performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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