(Alliance News) - Nostra Terra Oil & Gas PLC on Tuesday said production from existing assets remains in line with management expectations and the company has completed leasing of a 160 acre standalone asset within the Mesquite target area in the US state of Texas.
The Mesquite lease is surrounded by production wells and allows the company to drill a minimum of two horizontal wells with a half-mile lateral within formation, or eight vertical wells based on 20 acre spacing, in a single formation.
Nostra Terra Oil & Gas has applied for drilling two wells, one in the standalone 160-acre lease, and the other in the core Mesquite acreage. The drill permits are expected to be received in the coming weeks.
The company also plans to drill new wells on existing leases and pursue acquisitions of existing producing assets.
"The 160-acre lease represents an excellent opportunity for Nostra Terra to drill its first horizontal well with a half-mile lateral in the Permian Basin. Furthermore, we are in various stages of negotiations to acquire additional producing assets, most of which are in the Permian Basin, and are working hard to complete the right deals at attractive valuations. We anticipate that any acquisition will be cash generative and immediately accretive to earnings, which could prove transformational to the company," Nostra Terra Chief Executive Matt Lofgran said.
Nostra Terra shares were up 2.5% at 1.23 pence each in London on Tuesday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Nostra Terra (NTOG)