Nostra Terra, the AIM-quoted oil and gas producer with projects in the USA, is pleased to announce that it has entered into an agreement with Crown Energy Company Inc. to acquire a 10% working interest in the Warrior Prospect, located in Oklahoma.
Highlights of the Warrior Prospect include:
- Shallow oil, with associated liquids-rich natural gas;
- Extensive regional structural mapping;
- Multi-pay potential from as many as eight reservoirs within Ordovician up through Permian formations; and
- Six potential horizontal drilling locations.
The Warrior Prospect lies within a prolific oil system, proven to produce from multiple, stacked-pay reservoirs. Leasing, pooling and permitting of the initial well are already complete. Drilling of the initial horizontal well is anticipated to begin during the first half of 2012, along with construction of all production and transmission facilities. Up to five additional horizontal wells may be drilled on the prospect in the future and tie into the infrastructure that is being installed for the initial well.
The development budget for the prospect, including current acreage, cost to drill and complete the initial test well, and cost to drill and complete a salt water disposal well if required, is $1,926,800, of which Nostra Terra's estimated portion is US$192,680.
Bale Creek Update
The seismic program, as outlined in the Company's announcement of 8 November 2011 was successfully completed, and an initial drill location selected. A drill rig has now been secured and is scheduled to be on location in January. The Company will make a further announcement in due course.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"Nostra Terra is delighted to have entered into this agreement with Crown, our second prospect in Oklahoma within the last six months, as we look to expand our operations significantly in the area. The acquisition is in line with our stated strategy to step up the pace of our growth; by building a diverse pipeline of assets in established oil and gas plays where we can generate added value and sustainable cash flow through disciplined cost control and use of advanced technology."
Based in Oklahoma City, Crown has many years of experience as an oil and gas operating and service company. Along with its affiliated company, Basin Engineering, it provides engineering and field services throughout the US on behalf of oil and gas companies of all sizes, including BP, Shell, Devon Energy, Chesapeake Energy.