Exploration company Nostra Terra has agreed a deal with Koch Exploration in Wyoming in the United States.
Nostra Terra will operate nearly 2,500 acres of the Paw Paw prospect located in the Big Horn Basin. Koch will retain an overriding royalty interest.
Paw Paw is twice the size of the highly productive Enigma field, located two miles away and is part of the Teensleep formation, which has a history of prolific production.
Nostra Terra is in the process of becoming a licensed operator in Wyoming and has already completed extensive work on the prospect including geological and geophysical analysis, third-party reservoir engineering, and preparations with drilling and completions contractors.The company said it expects to spud towards the end of this year.
Chief executive Matt Lofgran, added: “Nostra Terra will operate and Koch retains an interest in the prospect going forward. This prospect also represents the type of opportunity we have previously told shareholders and investors we planned to target, being conventional wells in proven basins, where economics are attractive even at lower oil prices.
“Acquisitions such as these should help lower our risk profile and actively protect the future of the Company. We look forward to sharing the progress on this prospect with shareholders.”