Nostra Terra Oil & Gas increases stake in High Plains

Nostra Terra Oil & Gas, the AIM-listed oil and gas producer, has exercised an opportunity to increase its working interest to 20% in the High Plains Prospect, located in Texas.

Nostra Terra Oil & Gas, the AIM-listed oil and gas producer, has exercised an opportunity to increase its working interest to 20% in the High Plains Prospect, located in Texas.

This has quadrupled the company's original holding and the company said that it is already engaged in the drilling of several wells in its Chisholm Trail Prospect, operated by Ward Petroleum and others.

The largest potential working interest in those wells is also 20% but through the forced pooling and election process unique to Oklahoma, the largest interest obtained so far has been 12.5%, with numerous smaller participations.

The High Plains Program covers a contiguous area of 42,000 acres (66 square miles), where subsurface mapping, 3D seismic, vertical and horizontal drilling and completion technologies have been applied to several different formations.

The group said that the working interest partners would seek to increase success rates through the application of a new proof of concept. The region was noted in the $2.85bn purchase of Cordillera Energy Partners by Apache Corporation in January, 2012, the company added.

Alden McCall, Chief Operating Officer of Nostra Terra, commented: "We were certainly excited about what we learned in the reentry of the previously drilled well which led to increasing our original working interest from 5% to 6.5%. Moreover, we knew that some potential existed to increase beyond that level. We have now been able to quadrupled our original working interest to 20% in the overall program, the maximum that was available."

Nostra Terra Oil & Gas' share price was up 4.04% to 0.52p at 08:55 on Friday.

MF

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021