Nostra Terra buys minority interest in Texas’ San Miguel prospect

LONDON -- Nostra Terra has announced the acquisition of a 1% working interest in the San Miguel Prospect, comprising 35,000 acres in South Texas.

The cost of drilling the initial well, and further wells planned this year, will be funded from internal cash flow.

The first well has already spud with completion anticipated within one month. It will be drilled to a depth of approximately 4,500 ft and will be extended horizontally approximately 5,100 ft. The continuous drilling program is designed to drill one well at least every four months.

The hydrocarbon province of South Texas is one of the most prolific in the U.S. It offers many potential targets, such as the Eagle Ford, Escondido, Olmos, San Miguel, Austin Chalk, Buda, Georgetown, Edwards and other formations, often in excess of 250 ft thick in pay.

Importantly, the Eagle Ford is considered to be the original source rock for the hydrocarbons in most of the stacked pays along the trend. The Eagle Ford extends more than 50 miles wide and 400 miles long (equivalent to 870 million acres).

The asset further enhances Nostra Terra's portfolio of wells in areas where proven horizontal drilling and completion technologies are being applied to known reservoirs.

"This is our second acquisition in a matter of weeks in Texas. The San Miguel Prospect also has a continuous drilling program at a pace of no less than one well every four months. Between this prospect and the previous acquisition, we should see a new well every other month,” Matt Lofgran, CEO of Nostra Terra, said. “This 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."