Nostra Terra announces farm-in to Pine Mills acreage

The AIM-traded firm owns a 100% working interest in Pine Mills, which covers 2,400 acres.

It said the ‘farminee’ would drill and complete one well at its sole expense to earn a 75% working interest in an 80 acre portion of the Pine Mills leased area, where it had already acquired 3D seismic data.

Nostra Terra would receive a 25% carried working interest, at no cost, for one well.

The company said it could participate for an additional 10% of the uncarried working interest at cost for the one well, at its sole option within the next 30 days.

It added that the well area had no existing production or reserves.

“We're excited to execute this farmout agreement with Cypress. Pine Mills has been a stable producer for the company, whilst providing much scope for expansion,” said chief executive officer Matt Lofgran.

“A farmout gives us the ability to leverage our existing asset and seek to grow our production and reserves, with no cost to Nostra Terra.

“The farmout agreement is a clear execution of the board's recently-stated goal t o carefully manage existing assets and restrict work to that which improves the economics of each project in the light of the changing oil price environment.”

At 1613 BST, shares in Nostra Terra Oil and Gas Company were up 4.56% at 0.26p.