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(Alliance News) - Nostra Terra Oil & Gas Company PLC on Wednesday said it has agreed to a farm out a 75% interest in a portion of its Pine Mills acreage in Texas.
Cypress Mineral LLC has taken a 75% stake in the asset and will drill and complete one well at the Pine Mills at no cost to Nostra. The drilling will cost Cypress roughly USD800,000.
"Once the well is drilled and completed, Cypress will earn a 75% interest in the well area, while Nostra Terra will retain a 25% working interest in the well and the well area," Nostra said.
The 75% stake being farmed-out concerns an 80 acre segment of Pine Mills.
"The farmout agreement does not affect the remaining 2,320 acres of the Pine Mills leased area, where Nostra Terra will still owns and operates a 100% working interest," Nostra added.
Nostra shares were 18% lower at 0.205 pence each in London on Wednesday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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