London-based Nostra Terra Oil & Gas Co. Plc said May 18 it acquired a 1% working interest in the San Miguel Prospect in South Texas.
The 35,000-acre acquisition has characteristics similar to Nostra Terra’s 20,000-acre acquisition in the Don Pedro Prospect that was announced April 27.
In San Miguel, the initial well is spudded; shallow oil areas with associated liquids-rich natural gas are the targets, and there are nine stacked formations for horizontal drilling. There is extensive regional structural mapping, and proven horizontal drilling success in the area.
Nostra Terra has plans to possibly acquire more interests, and this is the second acquisition in first-quarter 2015, the company said.
Internal cash flow will fund initial well drilling and drilling of wells later in the year, the company said.
The first well is scheduled to be completed within one month, and will be drilled to about4,500 feet (ft), then extended horizontally about 5,100 ft. A continuous drilling program will drill one well at least every four months.
CEO Matt Lofgran said the San Miguel acquisition “compares very well with Chisholm Trail, where over the last few years we announced 18 wells in a period of 26 months, with a number of operators. The board continues to pursue additional acquisitions with the intention of having a material impact on production and reserves going forward."
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