Nostra Terra acquires stake in Texas progect

Oil and gas company Nostra Terra has entered an agreement with Brown and Borelli to acquire a five per cent working interest in the High Plains programme in Texas.The High Plains programme covers a contiguous area of 42,000 which is expected to produce liquids-rich targets. The first step of the venture will be to re-enter a previously drilled well within the next 60 days.If proven successful, exploration will be extended over a larger area. The total initial exposure to Nostra Terra for the re-entry, completion and subsequent reprocessing of 35,000 acres of 3D seismic data to is estimated to come to $75,000. The cost of the programme for acreage acquisition, brokerage fees and regulatory compliance is expected to approach $500 per acre $1.2m for each one of the potential prospects. Matt Lofgran, the Chief Executive Officer of Nostra Terra, said: "Alden has done a great job identifying yet another opportunity with similar potential to Chisholm Trail. "With our portfolio of producing wells now delivering a reliable revenue stream and pushing us well past break-even on operations, we are more comfortably positioned to enter into higher-risk exploration opportunities to strengthen our portfolio. "The High Plains investment offers controlled risk against a potential large upside for our shareholders."RD