Nostra Terra has announced the approval of an Exploratory Unit within the Paw Paw Prospect by the Bureau of Land Management (BLM).
The BLM approved the creation of an Exploratory Unit encompassing the most highly prospective 1280 acres within the 2440 acre leasehold within the Paw Paw Prospect. All formations are included within the Unit.
There are numerous benefits to the creation of the Unit. Firstly, a single commercial well will perpetuate all leases within the entire Unit, effectively suspending the original expiration terms. Secondly, we will be able to operate the original multiple leases as a single lease under a single operator. This process allows for more efficient, controlled development and is an important step in creating value to the prospect.
Nostra Terra currently has a 100% working interest in this prospect, where Koch Exploration, (a subsidiary of Koch Industries, the second largest private company in the USA) retains an overriding royalty interest with the right to convert to a working interest.
In Tandem with applying for approval of the Unit we are in the process of becoming an operator in the State of Wyoming and in the process of applying for the necessary permits to drill.
As the oil markets strengthen Nostra Terra plans to sell a promoted interest to other oil companies while keeping a carried working interest and operating. A contract operator has already been working with the Company at various stages of the planning process. This allows Nostra Terra to scale up accordingly and drill larger prospects while maintaining lower overheads.
Haas Engineering (third-party reservoir engineer) has projected that the potential resource of the leased acreage could be as much as 7.368 million bbls of oil from primary and secondary recovery.
Matt Lofgran, CEO of Nostra Terra, commented: "This is a significant step in creating value for the Paw Paw Prospect. We're pleased to see the approval of a Unit covering a large extent of the leasehold. The potential resource estimated by the 3rd-party engineer further underlines the significance of this prospect."
Edited from press release by Angharad Lock
Read the article online at: https://www.oilfieldtechnology.com/exploration/03122015/nostra-terra-announces-blm-approval-of-an-exploratory-unit-1733/