Nostra Terra, the AIM oil and gas producer, building its portfolio of assets in U.S. oil fields, announced it has exercised an opportunity to increase its Working Interest (WI) to 20 percent in the High Plains Prospect, located in Texas. This has quadrupled the company's original holding. Work to define prospects is moving forward.
The Company 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 participation. The State of Texas regulatory framework does not engage in Forced Pooling, which means that the Company's working interests in wells elected to be drilled in High Plains' prospects will not be reduced and will consistently be 20 percent.
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 WI partners will seek to increase success rates through the application of a new "proof of concept". The region was noted in the US$2.85 billion purchase of Cordillera Energy Partners by Apache Corporation in January 2012.
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 percent. 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 percent in the overall program, the maximum that was available.
"Today, with this increase, we not only have the opportunity to build a healthy pipeline of drilling locations for years to come, but the exposure in each well will be several times greater than we have typically enjoyed at Chisholm Trail.
"As mentioned before, we are actively integrating detailed subsurface mapping with 3D seismic data, further defining our exploration model. I expect that numerous prospects will be identified and that we could be moving forward to obtain leases under several of them shortly."
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