Nostra Terra Oil & Gas Company PLC Update on Pine Mills Farmout (8888P)
15 Junio 2020 - 1:00AM
UK Regulatory
TIDMNTOG
RNS Number : 8888P
Nostra Terra Oil & Gas Company PLC
15 June 2020
15 June 2020
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Update on Pine Mills Farmout
Nostra Terra (AIM: NTOG), the oil & gas exploration and
production company with a portfolio of development and production
assets in Texas, USA, is pleased to provide an update regarding the
farmout of a portion of Pine Mills as announced by the Company on
22 April 2020.
Highlights
-- Company has elected to increase its Working Interest ("WI")
in the farmout area to 32.5%, of which 25% is carried at no cost to
Nostra Terra
-- Board has reviewed the technical data of the farmout area
provided by the farminee and finds it attractive
-- Continued positive engagement with Washington Federal Bank
over a potential increase in facility size
-- Scope for further increase in production in remaining
acreage, as well as potential for farm-out of additional undrilled
acreage
Background
On 22 April 2020, the Company announced a farmout transaction
with Cypress Minerals LLC ("Cypress") at Pine Mills for 80 acres
("farmout area"), currently undeveloped, of Nostra Terra's 2,400
acres. Nostra Terra will receive a 25% carried WI on the first well
drilled by Cypress on the farmout area. In addition, pursuant to
the farmout agreement, Nostra Terra retained the option to
participate for an additional 10% WI at cost (no promote) in the
farmout area.
Cypress has identified a low-risk drilling location for the well
based on existing well control and a 1998 vintage 3D seismic
survey, which they have licensed, reprocessed, and interpreted. The
target formation is the Upper Cretaceous Woodbine Sand, which is
one of the main producing horizons in the area.
Option / Increase in Working Interest
The Board has assessed the geological and geophysical work on
the farmout area, which was presented by Cypress. The Directors are
of the view that the well has a good risk-reward balance and,
accordingly, Nostra Terra has exercised its option to take up an
additional 10% WI (the maximum amount under the farmout agreement),
of the 75% WI held by Cypress, in the well (i.e. an increase of
7.5% WI). Drilling and completion cost for the initial well is
circa $800,000 ($80,000 net to Nostra Terra). Nostra Terra's WI in
the well and the farmout area has now increased to 32.5% WI, with
25% WI being carried with no cost to NTOG.
In a further demonstration of its ongoing positive relationship,
Washington Federal Bank has provided a release of lien over the
acreage so the farmout is not encumbered. Once the well is drilled
and producing, Nostra Terra will have the ability (at its sole
discretion) to add its WI in the well to the collateral securing
the existing Senior Facility in order to have access potentially to
additional funds for further drilling and/or acquisitions.
There is potential to drill up to five new wells within the
farmout area. A successful well could further significantly
increase both production rates and reserves. In addition, Nostra
Terra still owns 100% WI in the rest of Pine Mills field (2,320
acres), encompassing existing producing wells and infrastructure.
There remains scope for further increases in production in this
area as well as potential for farm-out of additional undrilled
acreage.
Title work, well design, and permitting have all commenced, with
drilling planned to take place shortly thereafter. Further updates
will be made on progress of the proposed new well in due
course.
Matt Lofgran , Nostra Terra 's Chief Executive Officer,
said:
"Given the Board's extensive background in geology and
geophysics I am pleased that the review of the asset, in particular
the 3D seismic data, was very favourable. We're happy to see the
quick progress Cypress is making and look forward to seeing the
well drilled and the potential increase in revenue."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014
For further information, contact:
Nostra Terra Oil and Gas Company
plc
Matt Lofgran, CEO Email: +1 480 993 8933
Strand Hanson Limited
(Nominated & Financial Adviser
and Joint Broker)
Rory Murphy / Ritchie Balmer /
Jack Botros Tel: +44 (0) 20 7409 3494
Novum Securities Limited (Joint
Broker)
Jon Belliss
Tel: +44 (0) 207 399 9425
Lionsgate Communications (Public
Relations)
Jonathan Charles Tel: +44 (0) 7791 892509
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDFZGMVLDKGGZM
(END) Dow Jones Newswires
June 15, 2020 02:00 ET (06:00 GMT)
Nostra Terra Oil And Gas (LSE:NTOG)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Nostra Terra Oil And Gas (LSE:NTOG)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024