Business
Acquisition of Producing Assets & Issue of Shares
Acquisition of Producing Assets & Issue of Shares.
About this update from Buccaneer Energy Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 7889X\n Nostra Terra Oil & Gas Company PLC\n 02 September 2020\n \n \n \n \n 2 September 2020\n \n \n \n \n \n Nostra Terra Oil and Gas Company plc\n \n \n (\"Nostra Terra\" or the \"Company\")\n \n \n \n \n \n Acquisition of Producing Assets, Issue of Shares and TVR\n \n \n \n \n \n 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 announce the acquisition of a 100% Working Interest in the Caballos Creek Oil Field, a producing oil field with additional development opportunity in Atascosa County Texas.\n \n \n \n \n \n Highlights\n \n \n · \n Independently assessed PV10 US$1,052,300 for proved reserves\n \n \n o \n Proved reserves as at 30 June 2020 of 92,100 boe (gross)\n \n \n o \n Remaining economic life of 16 - 32 years per well\n \n \n · \n Shallow, conventional, oil producing assets\n \n \n · \n 745 acres, all held-by-production (\"HBP\") \n \n \n · \n 100% working interest (\"WI\"), with\n NTOG assuming operatorship\n \n \n · \n 30 bopd current production (gross), which increases Company-wide production by circa 25%\n \n \n · \n Financed entirely without dilution \n \n \n · \n Estimated payback less than 2 years \n \n \n \n \n \n Further details on the Acquisition\n \n \n \n \n \n The primary assets are shallow, vertical oil wells producing 30 bopd gross (22 bopd net of royalties) with further development potential. Proven reserves (producing and non-producing) are PV10 US$1,052,300 with estimated remaining economic life of the wells ranging from 16 years to 32 years per well, per third-party engineering report performed by Netherland Sewell & Associates (\"NSAI\"). \n \n \n \n \n \n The acquisition represents an approximately 25% increase in total Company daily production, from year end 2019, financed entirely without dilution. As at 30 June 2020, NSAI estimated proved remaining reserves of 92,100 boe gross, 69,300 boe net. For the year ended 31 December 2019, the assets generated turnover of c. $0.35 million and profit-before-tax of c. $0.22 million. \n \n \n \n \n \n Nostra Terra has entered into an agreement to acquire 100% WI in the assets from Oro Resources LLC and Oro East Tx LLC for US$425,000, which is ant...