Business
Acquisition Of Interest In Colorado
Acquisition Of Interest In Colorado.
About this update from Buccaneer Energy Plc
[{"type":"text","content":"\n \nRNS Number : 6999I Nostra Terra Oil & Gas Company PLC 20 June 2011 \n \n\nNostra Terra Oil and Gas Company plc\n(\"Nostra Terra\" or the \"Company\")\nAcquisition of Interest in Colorado\nNostra Terra, the AIM oil and gas producer with projects in the USA, is pleased to announce that it has entered into an agreement with Plainsmen Partners LLC (\"Plainsmen Partners\") to acquire a 16.25% working interest in the Verde prospect, located in south-eastern Colorado. \nThe leases cover approximately 636 net acres in which an initial test well will be drilled into the Mississippian formation to a projected total depth of 5300 feet. The total estimated cost of the well is US$ 1,131,691, of which Nostra Terra's estimated portion is US$ 183,900. The net revenue interest of Nostra Terra's 16.25% working interest is 13.41%. Drilling of the well is expected to begin during Q3, 2011.\nHighlights of the Verde Field Development project include:\n· Shallow oil, with the potential of associated natural gas;\n \n· Regional structural mapping suggests subsurface closure;\n \n· Confirmation of subsurface high-structural block by 3D Seismic;\n \n· Multi-pay potential of Marmaton, Morrow/Keyes & Mississippian reservoirs;\n \n· Analogous to geological settings of several substantial oilfields.\n3D seismic has been shot and interpreted that supports the subsurface mapping of a structural high being 25 to 50-feet up dip to historical production from the Lower Morrow Keyes. Should the drilling of the initial test well on the Verde prospect prove successful, two to three further development wells (PUDs) could be drilled, in which Nostra Terra also has the right to participate.\nLower Morrow/Keyes target\nThe Lower Morrow/Keyes Sand has produced, to date, from 4 wells down dip within the immediate area, which have an accumulated historic production of approximately 60,000 barrels of oil. The last two of these wells were plugged in 1991, due to the prevailing economics of the day, when producing approximately 3 to 5 barrels of oil per day. The proposed drill location is positioned to recover \"attic\" oil in the Keyes at a higher location on the structural feature.\nMississippian target\nTh...