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LONDON (Alliance News) - Nostra Terra Oil & Gas Co PLC said Monday it acquired the Mesquite Prospect located in the Permian Basin, west Texas.
The US and Egypt focused oil & gas exploration company said the prospect has a potential for eight horizontal wells to be drilled.
Nostra Terra intends to engage with a specialist firm to o create a field development plan for the prospect.
The company paid USD150,000 in cash to Tall City Exploration III for the acquisition of the 1,384 acres in the region, which multiplied its stake in the Permian Basin.
Looking ahead, Nostra Terra said it intends to increase its Permian acreage further as it is targeting a number of acquisitions in the region potentially suitable for horizontal drilling.
Chief Executive Officer Matt Lofgran said: "We are incredibly excited to have made such a substantial acquisition, quadrupling our Permian footprint and, much more importantly, now having the opportunity to drill horizontally.
"Horizontal drilling has been the primary driver in delivering the substantial gains in production and reserves seen across the Permian Basin in recent years. For a company of our size this is a huge opportunity, which we are now well positioned to take advantage of."
Nostra Terra shares were trading down 1.9% at 3.80 pence each.
