26th Feb 2016 11:26
LONDON (Alliance News) - Nostra Terra Oil & Gas Co PLC Friday said the permitting process for the Paw Paw prospect in the US should be completed "within weeks," and said it has secured more time to drill a well at the project.
Nostra Terra owns 100% of Paw Paw, located in the Big Horn Basin in Wyoming, and is currently focused on securing the necessary permits to allow a well to be drilled on the prospect, which the company expects to receive imminently.
Nostra Terra has also extended the deadline by which the well has to be drilled after reaching an agreement with Koch Exploration Inc, a subsidiary of private conglomerate Koch Industries, which retained an overriding royalty interest in the prospect.
Nostra Terra said the extension gives the company "several months" before the well must be completed, and also hinted further extensions could be awarded by the Bureau of Land Management.
"Should that occur, the deadline to drill could be extended beyond the summer of this year, thus allowing further time for the oil prices to stabilise," said Nostra Terra.
"We've previously stated that we plan to bring in other industry partners to finance the initial exploration well while we operate and keep a carried working interest. This extension and the possible future extensions allows us to increase further exposure to upside with minimum capital exposure for our shareholders," Chief Executive Matt Lofgran added.
Paw Paw is thought to hold up to 7.3 million barrels of oil, which, if extracted, would see 5.8 million barrels attributable to Nostra Terra.
Nostra Terra shares were down 7.0% to 0.107 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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