27th Apr 2015 06:46
LONDON (Alliance News) - Nostra Terra Oil and Gas Co PLC Monday said it has acquired a 1% working interest in a 20,000 acre prospect in southern Texas in the US.
The Texas-focused oil and gas company said it plans to increase its stake in the prospect, but did not reveal any financial details concerning the deal.
An initial well has already been drilled on the prospect and is expected to be completed in around 10 days. Nostra said the cost of drilling the initial well, and further wells planned this year, will be funded from internal cash flow. The company is hoping to drill a new well on the prospect every four months.
Nostra said the prospect has shallow oil targets "associated with liquids-rich natural gas" with up to nine stacked formations that could be exploited using horizontal drilling.
"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," said the company.
"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," it said in a statement.
Nostra Terra said it will continue to look at acquiring further assets, but on a "larger scale".
By Joshua Warner; [email protected]; @JoshAlliance
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