Nostra Terra Oil & Gas Company PLC Mesquite Farm-In Data Room Opened (3287O)
29 January 2019 - 6:00PM
UK Regulatory
TIDMNTOG
RNS Number : 3287O
Nostra Terra Oil & Gas Company PLC
29 January 2019
29 January 2019
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Mesquite Farm-In Data Room Opened
Nostra Terra (AIM:NTOG), the oil and gas exploration and
production company with a portfolio of assets in the USA and Egypt,
is pleased to announce the opening of a data room for parties
interested in farming into the Mesquite Asset in the Permian Basin
("Mesquite").
Mesquite Field Development Plan
As previously announced (21 January 2019), Trey Resources
("Trey") has delivered the first complete iteration of the Mesquite
Field Development Plan ("FDP"). This FDP covers the initial 1,384
net acres at Mesquite, in which Nostra Terra has a 100% working
interest (the "Initial Acreage").
Based on Trey's analysis, Nostra Terra has concluded that the
Initial Acreage contains 2,400,000 barrels of recoverable oil.
Using Trey's current and mid-case estimates, Nostra Terra has
assigned a US$21,600,000 NPV10 valuation to the Initial Acreage at
current strip pricing and a US$28,600,000 NPV10 at US$60 oil. Using
these prices, the Company calculates that Mesquite delivers an
Internal Rate of Return ("IRR") of between 34% and 46%.
Trey will work on future iterations of the Mesquite FDP, as
Nostra Terra secures more acreage. However, in the meantime the
Company is now able to commence farm-in discussions with interested
parties. Nostra Terra has already received several unsolicited
approaches from potential industry partners concerning
Mesquite.
Data Room & Mesquite Area of Mutual Interest ("AMI")
To facilitate farm-in discussions, Nostra Terra has prepared a
data room. This contains complete records of the analysis conducted
by Trey and Nostra Terra in their assessments of Mesquite and the
surrounding area. This includes a 15 square mile volumetric map and
details of the in-house regional petrophysical analysis, which Trey
used to create effective porosity, water saturation and net maps to
build the volumetric model (the "AMI").
This AMI presents a significant expansion opportunity for Nostra
Terra and any possible future farm-in partner.
Nostra Terra will now make the data room available to interested
parties, subject to confidentiality.
Matt Lofgran, Chief Executive Officer of Nostra Terra,
commented:
"Now that we have the first complete iteration of the Mesquite
Field Development Plan, we are in a position to commence farm-in
discussions. Mesquite is an extremely ambitious project for a
company of Nostra Terra's size, with a great deal of potential to
expand the current acreage.
Teaming up with the right industry partner could unlock
substantial value for shareholders, both in terms of the current
NPV10 estimates and securing a much greater regional
footprint."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Competent Person Disclosure
John Stafford, a Director at Nostra Terra with over 35 years
relevant experience in the oil industry, has reviewed this
announcement for the purposes of the current Guidance Note for
Mining, Oil and Gas Companies issued by the London Stock Exchange
in June 2009. Mr. Stafford is a Fellow of the Geological Society
and a member of the Petroleum Exploration Society of Great
Britain.
For further information, visit www.ntog.co.uk or contact:
Nostra Terra Oil and Gas Company
plc
Matt Lofgran, CEO Tel: +1 480 993 8933
Strand Hanson Limited
(Nominated & Financial Adviser
and Joint Broker)
Rory Murphy / Ritchie Balmer /
Jack Botros Tel: +44 (0) 20 7409 3494
Smaller Company Capital Limited
(Joint Broker)
Rupert Williams / Jeremy Woodgate Tel: +44 (0) 20 3651 2910
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCCKFDQOBKDFDB
(END) Dow Jones Newswires
January 29, 2019 02:00 ET (07:00 GMT)
Nostra Terra Oil And Gas (LSE:NTOG)
Historical Stock Chart
From Apr 2024 to May 2024
Nostra Terra Oil And Gas (LSE:NTOG)
Historical Stock Chart
From May 2023 to May 2024