20th Jun 2014 09:28
LONDON (Alliance News) - Nostra Terra Oil and Gas Co PLC Friday said the first exploration well in the High Plains prospect in Texas has been leased and permitted, with drilling now planned for the third quarter of the year.
Nostra Terra hold a 20% working interest in the High Plains prospect, which is operated by Oklahoma-based Brown & Borelli Inc.
The oil and gas producer with a portfolio of producing assets in the US said that the dependable revenue streams from the Chisholm Trail Prospect in Oklahoma, means it is in a better position to enter into higher-risk opportunities such as High Plains to strengthen its portfolio.
"The geophysical results indicate that High Plains has the potential to provide a healthy pipeline of drilling locations for some years to come," the company said in a statement.
Nostra Terra also said it has elected to participate in the 16th well, Bollenbach 1-33H, and the 17th well, Wilson 3-8-5H, both in the Chisholm Trail prospect.
"As we continue to grow our portfolio, these larger WIs [working interests] in wells could have a substantial impact on our future production levels and our cash flow," said Chief Executive Officer Matt Lofgran in a statement.
The company owns a 20% working interest in the Bollenbach 1-33H well. It said total well costs are estimated at USD4.2 million, of which USD830,800 are net costs to Nostra Terra.
Nostra Terra owns a 2.92% working interest in the Wilson 3-8-5H well. It said total well costs is estimated at USD3.5 million, USD101,403 of which are net costs to Nostra Terra.
Nostra Terra shares were trading flat Friday morning at 0.270 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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