Nostra Terra announces the acquisition of an 80% Working Interest in certain oil and gas interests comprising the Pine Mills oil field and associated assets in Wood County, Texas, 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$1,025,000 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 2,400-acre producing oil field, currently producing an average of 100 barrels of oil per day (bopd) (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.