11th Sep 2020 10:47
(Alliance News) - Nostra Terra Oil & Gas Co PLC on Friday announced it has acquired 100% of the Caballos Creek oil field in Atascosa County, Texas.
The oil and gas exploration and production company, focused on the USA and Egypt, said it has now taken over operations of the field.
The acquisition includes five producing wells, two injectors and one shut-in producer located on 745 acres and had proved reserves as at June 30 was at 92,100 barrels of oil equivalent, with remaining economic life of 16 to 32 years per well. The acquisition was made for USD425,000.
The company will be further assessing additional upside in the field. This will include a review of well files, review of logs, depth structure mapping on key reservoirs, identifying locations for additional drilling, calculating net pay and volumes, and other associated activities.
Nostra Terra said it is also looking to make more acquisitions inside and outside the US with the aim of increasing its cash flow "immediately".
The company will publish its interim results for the first half of 2020 by October 31.
Chief Executive Matt Lofgran said: "Nostra Terra has acquired another asset that is immediately accretive, adding significant cash flow to the company, achieved with non-dilutive financing. The board is planning further growth in a similar fashion during the remainder of the year. We look forward to providing further updates in the future."
Nostra Terra shares were up 3.7% at 0.31 pence each in London on Friday morning.
By Greg Roxburgh; [email protected]
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