RNS OUT !3 Mar 2021 07:16
The Farmout Well was successfully drilled at the end of 2020 and put into production in January of this year. The well continues to produce at the levels advised by the Company on 25 January. It is anticipated that the Farmout Well will be added as collateral to Nostra Terra's Senior Lending Facility which will provide non-dilutive funds to fund further drilling activity.
In addition, Nostra Terra and Cypress are planning a second well within the original Farmout Area, due to spud in the second half of this year.
Further, within the original 2,400 acres, where Nostra Terra still owns a 100% WI, there are additional undrilled areas that are currently being assessed for additional farmouts.
Ongoing analysis of the technical data indicates that the Farmout Area, and a significant area beyond, is virgin reservoir. Hence Cypress has now taken additional leases outside the Farmout Area (and outside Nostra Terra's 100% owned acreage). The Farmout Area has now doubled in size, in which Nostra Terra has a 32.5% WI in the enlarged acreage position. Potential additional locations and reserves are also being assessed in these areas.