Business
Acquisition of Minority Interest
Acquisition of Minority Interest.
About this update from Buccaneer Energy Plc
[{"type":"text","content":"\n Nostra Terra Oil and Gas Company plc\n\n (\"Nostra Terra\" or the \"Company\")\n\n Acquisition of Minority Interest in Texas\n\n7 June 2010\n\nNostra Terra Oil and Gas Company plc (AIM: NTOG) is pleased to announce that it\nhas signed an agreement with Sherpa Energy Resources, L.P. to acquire a 2%\ninterest in an Austin Chalk re-entry well in Lee County, Texas, for US$17,800.\n\nThe Austin Chalk re-entry well is a long-standing production well being\nredeveloped with the objective of recovering significant additional oil and gas\nreserves. The original well was drilled vertically in 1984 and produced oil and\ngas for many years from the historically prolific Austin Chalk formation. The\nredevelopment plan is to re-enter and horizontally drill a lateral section into\nthe Lower Austin Chalk, extending up to 2,000 feet from the original wellbore.\nThis technique has already been used very successfully on a number of similar\nwells within the area.\n\nThe total cost of drilling the lateral section and equipping the well is\nestimated at US$890,000. NTOG's proportionate contribution to these costs has\nbeen satisfied by the consideration referred to above.\n\nMatt Lofgran, CEO of Nostra Terra, said: \"Participation in the redevelopment of\nthis well diversifies and extends our growth strategy into Texas in addition to\nKansas and Utah.\n\n\"While our initial stake is just 2%, I am hopeful that this will be a successful\nfirst step in building a substantial, long-term presence in Texas. We intend to\nenter into partnerships with other companies that recognise the potential of\nhorizontal Austin Chalk wells to produce additional commercial reserves using\ntoday's drilling technologies. There are literally hundreds of potential Austin\nChalk candidates in the area to apply these techniques.\"\n\nRedevelopment of the well is already under way. Drilling and testing of the\nlateral section is expected to be completed within three to four weeks. Nostra\nTerra will announce the results of the initial well test once they are\navailable.\n\n\nFor further information, please visit www.ntog.co.uk or contact:\n\nNostra Terra Oil and Gas Company plc\nTelephone: +1 480 993 8933\nMatt Lofgran, CEO\[email protected]\n\nReligare Capital Markets\nTelephone: +44(0)20 7444 0800\nPeter Trevelyan-Clark/Ben Jeynes\n\nAlexander David Securities Ltd\n T...