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Permian Basin Acquisition, Well & Finance Update
Permian Basin Acquisition, Well & Finance Update.
About this update from Buccaneer Energy Plc
[{"type":"text","content":"\n \nRNS Number : 0647V Nostra Terra Oil & Gas Company PLC 31 October 2017 \n\n31 October 2017\n \nNostra Terra Oil and Gas Company plc\n(\"Nostra Terra\" or the \"Company\")\n \n3rd Permian Basin Acquisition, New well and Finance Update\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 its third acquisition in the Permian Basin of Texas (\"the Acquisition\") and financing update. The Acquisition includes a target which was previously drilled and produced oil. Operations for a twin well are scheduled to commence in November.\n \nHighlights\n \n- Acquiring a 53.25% Working Interest over a 120 acre lease (\"the Lease\")\n- Acquisition cost of US$40,000\n- 3 drill ready locations\no Shallow, conventional wells\no Leases all Held By Production (\"HBP\")\n- Plan to drill a new \"twin\" well already underway (\"the Twin Well\")\no Targeting previously successful well mistakenly drilled by offset operator, resulting in 350 barrels produced in less than 3 days\no Drilling permit already in place\no Rig expected onsite early November 2017\n- Nostra Terra will carry existing Working Interests for drilling of first well \no The Company will cover 71% of the first well cost, being approximately US$340,000\n- Well profile \no Anticipated 2:1 Return on Investment (\"ROI\") at $40/barrel oil\no Estimated Ultimate Recovery (\"EUR\") of 35,000 barrels of oil per well\no Target 25-40 bopd average 1st year\no Shallow decline curve\n- Additional growth potential through in-fill drilling, using 10-acre well spacing instead of existing 40-acre spacing \n- Director bridge loan of £300,000 to fund Acquisition and drilling of the Twin Well\n- Further progress made on Senior Lending Facility \no Expected interest rate of 4.5% - 5.5%\n \nAcquisition\n \nThe Acquisition covers 120 acres of the Permian Basin, Texas (\"the Lease\"). Nostra Terra has secured a 53.25% working interest in the Lease. The total cost of the Acquisition and drilling of the Twin Well is expected to be approximately US$380,000. \n \nThere are 3 drill ready locatio...