Nostra Terra to acquire Ward Petroleum’s stake in Chisholm Trail Prospect

Nostra Terra Oil and Gas has signed an agreement with Ward Petroleum to acquire a 20% working interest in the Chisholm Trail Prospect located in Oklahoma, US.

The agreement is in line with the company’s growth strategy to acquire large working interests in prolific oil fields located across the nation.

The company stated that the area of mutual interest within the prospect is spread across a non-contiguous area of over 1,420 acres.

Nostra Terra Oil and Gas said that leasing and permitting works for the initial wells have been completed to start drilling operations.

The company has a 20% net, non-operated interest in the initial well and minority interests in four more non-operated wells. Ward Petroleum will drill the initial well.

Drilling for the first three wells is estimated to cost $720,000 and Nostra Terra’s total estimated cost of lease-hold activities is $300,000.

The company is currently finalising drilling budget for the drilling operations. The first three wells are being planned to be drilled in second half of 2012.

In other operational updates, the company announced the start of hydraulic fracture stimulation at the first well on Bale Creek prospect also located in Oklahoma.

Perforation and production testing of the second well identified stacked formations in the 3D seismic interpretation.

The company will further update the status based on the flow rates and associated data from both wells, which have tested and produced oil.

A new well on the Warrior block is expected to be drilled later in 2012 or 2013.

Nostra Terra owns a 10% non-operating working interest in this programme.

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Image: Nostra Terra Oil and Gas plans to start drilling operations in 2012 or 2013. Photo: John Campbell.