LONDON (Alliance News) - Nostra Terra Oil & Gas Co PLC said Wednesday analysis carried out at its Mesquite prospect, in west Texas, shows a primary target formation of over 60 feet net pay thickness and 2.5 million barrels of oil-in-place across the current acreage.
The analysis was carried out by Trey Resources Inc as part of a field development plan for Mesquite, which is wholly owned by Nostra and covers 1,384 net acres.
Nostra said the prospect has the potential to host eight horizontal wells, which could deliver initial production rates of 200 to 300 barrels of oil per day.
"We're very encouraged by the results of the volumetric work as a first step in our evaluation of these new leases. We look forward to commercializing these volumes in the near future," said Chief Executive Matt Lofgran.
"The field has historically been a prolific oil producer from vertical wells. With the experience and data from the team we see this as an exciting opportunity to drill horizontal wells in order to see a substantial increase in production and cashflow."
Shares in Nostra Terra Oil & Gas were up 1.3% Wednesday at 2.33 pence each.
Nostra Terra (NTOG)