Business
Second Permian Basin acquisition, Receipt of funds
Second Permian Basin acquisition, Receipt of funds.
About this update from Buccaneer Energy Plc
[{"type":"text","content":"\n \nRNS Number : 6401X Nostra Terra Oil & Gas Company PLC 23 February 2017 \n\n23 February 2017\n \nNostra Terra Oil and Gas Company plc\n(\"Nostra Terra\" or the \"Company\")\n \nSecond Permian Basin acquisition and Receipt of funds \n \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 the acquisition of producing assets in the Permian Basin, Texas, along with the receipt of US$100,000 in connection with the previously announced sale of its interest in the Chisholm Trail Prospect.\n \nHighlights\n· 18 drilling locations\no 9 proven locations\no 9 probable locations\n· 75% working interest\n· Producing leases with 9 existing wells\no Infrastructure in place\no Workovers planned imminently \n· All acreage and locations Held By Production (\"HBP\")\n· Receipt of US$100,000, released from escrow\n \nAcquisition of producing assets in the Permian Basin\n \nIn keeping with its Permian Basin strategy, Nostra Terra is pleased to announce the acquisition of a package of 3 producing assets for $60,000, funded from existing cash resources. These leases include a 75% WI in 9 wells across an additional 200 acres in Mitchell County, and 18 future drilling locations. \n \nCurrently 2 of the 9 wells are producing, 5 are shut in and there is 1 injection well. The wells are producing circa 2 bopd gross, however potential exists across the leases for workover opportunities. A rig is currently being scheduled for the first of these workovers, which is also funded through existing cash resources.\n \nAs with the previous acquisition in the Permian Basin, all 3 leases are Held By Production (HBP), meaning they have no expiration date and no required work programme and remain in effect so long as the leases remain in production. The 18 future drill locations have been identified over 2 separate formations. These include 9 proven and 9 probable infill drilling locations.\n \nNostra Terra has identified further possible acquisition targets in the same area.\n \nPermian Basin Strategy\n \nIn November 2016 the Company made its first acquisition into the Permian Basin and anticipated f...