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Nostra Terra completed the acquisition of interest in Pine Mills oilfield

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Oilfield Technology,


Nostra Terra the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, has announced the acquisition of an 80% Working Interest in certain oil and gas interests comprising the Pine Mills oil field (Pine Mills) and associated assets in Wood County, Texas (the Acquisition), which completed today. Nostra Terra purchased the assets from GFP Texas Inc. (GFP Texas), which has exercised its pre-emption rights following the proposed sale of Pine Mills by its previous owner and operator, Cue Resources LLV (Cue Resources). In consideration for the purchase, Nostra Terra has paid US$1025 000 to complete the acquisition, which has been majority financed from existing cash resources with the balance from a Director loan facility.

Pine Mills is a 2400 acre producing oilfield, currently producing an average of 100 bpd (gross). Pine Mills is cash flow positive and has no legacy or other spending commitments attached to it. All leases are 'Held By Production', giving Nostra Terra full control over the timing of any future capital expenditure decisions. The effective date of the acquisition is 1 November 2016. Nostra Terra is now the operator of Pine Mills.

Highlights

  • 100 bpd (gross) average oil production rate over the last four months.
  • Pine Mills is profitable below US$30/bbl.
  • Cue Resources has internally assessed proved reserves of 373 000 bbl as of 1 September 2016 (consistent with PRMS definitions).
  • Total historic production of approximately 12.3 million bbls of oil from inception to present.
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    Nostra Terra has assumed operator status:

  • All leases are Held By Production (HBP).
  • Shallow, conventional oil, high porosity reservoirs.
  • Potential to achieve near term, stablised production of 150 bpd through.
  • Perforation of additional pay currently behind pipe.
  • Reactivation of inactive wells.
  • Infill drilling potential.
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    Long term upside potential through:

  • Deeper exploration targets.
  • Development opportunity from heavy oil skirt.
  • The Pine Mills oilfield

    Since the start of 2014, average monthly production at Pine Mills has been in excess of 2300 bbls.

    The previous operator, Cue Resources, has recently completed a significant capital investment programme at Pine Mills. This investment programme created a US$0.5 million internal net loss attributable to Pine Mills for the year to 31 December 2015, but resulted in the complete upgrade of the field's infrastructure and completion of downhole refurbishments. As a result of the investment programme operations at Pine Mills has been cash flow positive over the course of 2016.The Acquisition includes:

  • 15 actively producing oil wells, including all necessary production equipment.
  • Five well-maintained, upgraded storage tanks.
  • Four shut in wells potentially available for reactivation.
  • A fully self-contained service rig.
  • A 12-acre works yard.
  • 100% ownership of Buccaneer Operating LLC (operator of Pine Mills).
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    For further information please visit:Nostra Terra

    Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/29112016/nostra-terra-completed-the-acquisition-of-an-80-interest-in-pine-mills-oilfield/


     

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