Business
First Horizontal Well at Mesquite
First Horizontal Well at Mesquite.
About this update from Buccaneer Energy Plc
[{"type":"text","content":"\n \nRNS Number : 3193X Nostra Terra Oil & Gas Company PLC 29 April 2019 \n\n29 April 2019\n \nNostra Terra Oil and Gas Company plc\n(\"Nostra Terra\" or the \"Company\")\n \nFirst Horizontal Well at Mesquite\n \nNostra Terra (AIM:NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, is pleased to announce plans to drill the Company's first horizontal well at its Mesquite Asset in the Permian Basin, Texas (\"Mesquite\").\n \nProposed new lease agreement & plans to drill\n \nNostra Terra is pleased to announce that it is in advanced discussions with regards to a new 160-acre lease opportunity (the \"New Lease\") in the Mesquite Target Area (the \"Target Area\"). The Target Area currently covers over 30,000 acres, of which the Company has secured 2,184 gross acres (1,984 net acres to Nostra Terra). \n \nThe New Lease, presents Nostra Terra with an immediate opportunity to drill a half-mile horizontal well to prove up and increase the Company's overall Proven (1P) and Probable (2P) oil reserves at Mesquite. The New Lease is standalone, near, but not adjacent to, the existing acreage. Accordingly, the Company expects to be able to bring in partners on the New Lease whilst still maintaining a 100% interest in the existing Mesquite Asset\n \nNostra Terra intends to fund drilling of the proposed horizontal well using existing cash resources and through selling off a percentage working interest in the New Lease to certain oil and gas investors. Nostra Terra has already received expressions of interest from potential industry partners concerning the New Lease. \n \nNext steps\n \nFollowing completion of the placing announced on 27 February 2019, Nostra Terra engaged a landman to begin title work and to secure new leases for the Company in the Target Area. \n \nThe Company had previously identified the potential of the New Lease and has subsequently entered into discussions with the current mineral owners. These discussions are nearing conclusion and once complete Nostra Terra will apply for a permit to drill the first horizontal well.\n \nFollowing permitting, Nostra Terra plans to secure a rig and prepare the pad, followed by drilling and completion operations. Subject to execution of the lease agreement, these...