Business
Update re Kansas activities
Update re Kansas activities.
About this update from Buccaneer Energy Plc
[{"type":"text","content":"\n RNS Number : 9146Y Nostra Terra Oil & Gas Company PLC 05 January 2011 \n \n\n \nNostra Terra Oil and Gas Company plc\n(\"Nostra Terra\" or the \"Company\")\n \nReorganisation of Kansas activities\nAgreement with Hewitt Petroleum, Inc.\n \n \n \n5 January 2011\n \nAs announced in its Half Yearly Report issued on 30 September 2010, Nostra Terra Oil and Gas Company plc (AIM: NTOG) has been conducting a comprehensive review of redevelopment operations on its properties in Kansas, where production to date has been below expectations.\n \nThe review covered all aspects of the current redevelopment programme including engineering practices and operational efficiency, and involved detailed discussions with the operator of the Company's Kansas properties, Hewitt Petroleum, Inc. and various related entities (the \"HPI Entities\"), and advice from third parties. As a result of these discussions, the Company and the HPI Entities have determined it is best to end their relationship and have entered into a settlement agreement that accomplishes that end.\n \nThree properties within the Central Kansas Uplift (\"CKU\") are currently being redeveloped: Hoffman, in which Nostra Terra has a 25% working interest (\"WI\") and which has two producing wells; Boxberger and Bloom, in both of which Nostra Terra has a 75% WI before payout (50% after payout) which have two and three producing wells respectively. The Company's net* monthly production in barrels of oil equivalent (boe) from these properties for September, October and November was as follows: \n \n\n\n\n\n \n\n\nBoxberger**\n\n\nBloom\n\n\nHoffman\n\n\nTotal\n\n\n\n\nSeptember\n\n\n201\n\n\n372\n\n\n9\n\n\n582\n\n\n\n\nOctober\n\n\n0\n\n\n328\n\n\n10\n\n\n338\n\n\n\n\nNovember\n\n\n0\n\n\n319\n\n\n0\n\n\n319\n\n\n\n\nTotal\n\n\n201\n\n\n1,019\n\n\n19\n\n\n1,239\n\n\n\n\n \n*Net to Nostra Terra's working interests, after royalties of approximately 20% but before operating expenses.\n**The production on Boxberger was temporarily suspended in October and is currently in the process of being restored. Curative title work is in process for a portion of the Boxberger leases.\n \nAs a result of the review, on 4 January 2011 the Company and the HPI Entities entered into an agreement (the \"Agreement\"), under which: \n·&nb...