Nostra Terra will acquire an 80% working interest in an number of oil and gas interests comprising the Pine Mills field and associated assets in Wood County, Texas.
The firm has purchased the assets from GFP Texas which has exercised its pre-emption rights following the proposed sale of Pine Mills by its previous owner Cue Resources.
The deal, worth $1.25million, has been financed from existing cash resources with the balance from a director loan facility.
Nostra Terra will now be the operator of Pine Mills.
Matt Lofgran, chief executive of Nostra Terra, said: “The Pine Mills project is a perfect fit for Nostra Terra’s strategy. Having reduced our year on year running costs by 40% and refinanced the balance sheet through the sale of our interest in the Chisholm Trail prospect, the Pine Mills acquisition represents a significant step forward for the Company.
“Our goal has been to acquire assets, which we operate and where we control the pace of development. Pine Mills fulfills both key criteria. With Pine Mills profitable below $30 per barrel, the
project will help underpin our business model as we continue grow the business.
“Since our core US team is based in Texas, Nostra Terra has excellent local knowledge of the operating environment. This is now our second acquisition in Texas this year, and we intend to focus our energies on securing more producing assets across this prolific oil region.”
