18th Feb 2014 09:59
LONDON (Alliance News) - Nostra Terra Oil & Gas Company PLC Tuesday said it is participating in another Chisholm Trail well in Oklahoma.
The AIM-quoted oil and gas producer with operations in the US said it now has a 20% working interest in the Gant 1-22H well at the site.
The company has interests in a range of wells in the Chisholm Trail area, but, up until now had never taken working interests above 7.375% in any site in the area.
Nostra Terra said the initial well planned for the site will be a horizontal well testing the Hunton formation, drilled to a total depth of 11,750 feet and a lateral of roughly 4,000 feet.
The company said the overall cost of the site is expected to be USD4.2 million with Nostra Terra's costs estimated to be roughly USD843,600.
Nostra Terra said it will fund its participation in the well from the company's recently secured USD25 million facility and free cash flow from existing production.
The company added that drilling is expected to take place during the first-half of 2014 and Nostra Terra's net working interest in the unit will be 20% for any subsequent wells in the area.
Nostra Terra shares were down 2.5% to 0.292 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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