30th Apr 2018 12:48
LONDON (Alliance News) - Nostra Terra Oil & Gas Co PLC on Monday said that it intends to spud the first of the two wells at the Permian Basin assets in Mitchell County, Texas, in the "coming days".
Both wells are on the same lease as Twin well, which is currently producing at a higher rate than expected, the oil and gas producer said. Nostra Terra holds about 53% interest in the first well and a 73% stake in the second well.
The company said that the drilling will be funded from existing resources. It added that upon completion of drilling operations at the first well, the rig will be moved to the second well location. Both wells are targeting the clear fork formation.
"As we near spud of our next Permian Basin well, Nostra Terra's balance sheet continues to improve," said Chief Executive Matt Lofgran. "We remain cash flow positive and any increase in oil production over the coming months could significantly strengthen our position."
Shares in Nostra Terra were trading 2.4% higher at 4.02 pence per share on Monday.
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