Business
Acquisition of Prospect in Wyoming
Acquisition of Prospect in Wyoming.
About this update from Buccaneer Energy Plc
[{"type":"text","content":"\n \nRNS Number : 7005Q Nostra Terra Oil & Gas Company PLC 03 September 2014 \n \n\n \nNostra Terra Oil and Gas Company plc\n(\"Nostra Terra\" or the \"Company\")\n \n \nAcquisition of operated interest in White Buffalo Prospect\n \nNostra Terra (AIM:NTOG), the oil and gas exploration and production company with a growing portfolio of assets in the USA, is pleased to announce the acquisition of a 100% working interest in 6,100 net mineral acres in the White Buffalo Prospect from Ward Petroleum Corporation (\"Ward\") (the \"Acquisition\"). The Prospect is located in the Big Horn Basin of Wyoming and comprises several targets including the proven Phosphoria Formation. \n \nAcquisition Highlights\n \n· Nostra Terra now owns, controls and operates a 100% Working Interest in 6,100 net acres\n \n· Up to 20 potential locations for horizontal wells with 4,500 foot laterals, are possible with total recoverable potential of up to 13MMbo \n \n· PV10 for a horizontal well (4,500 ft lateral) in the Phosphoria Formation is estimated at US$5.9 million (best case) to US$11.8 million (high case)\n \n· Potential mean project value of US$118 million up to US$236 million in total based on 20 horizontal wells\n \n· Acquisition consideration of approximately US$1.2 million which includes the acreage, geological and geophysical work and associated legal and other costs\n \n· The Acquisition has been funded by existing cash reserves and an existing debt facility\n \n· Leasing of the Acquisition acreage is completed, with additional potential for expansion\n \n· The Phosphoria Formation has a history of prolific production and there is additional potential from the Frontier and Muddy Formations\n \n· SM Energy Co. has spudded its first horizontal Phosphoria well and Devon Energy Corp. has permitted two wells in the immediate vicinity\n \nRationale for the transaction\n \nNostra Terra has for some time sought to acquire a sizable prospect in basins with an established history of oil production but that has not yet been fully exploited by modern hor...