- Oil company Nostra Terra said it had agreed to acquire a stake in three leases in western Texas, targeting immediate production in the Permian Basin.

Nostra Terra said it had signed a farm-in agreement with a consortium of local owners and producers for the leases.

The company would pay a $25k fee at closing, followed by $100k towards the initial re-entry of the first well planned for completion

Nostra Terra would earn 50% of the net cashflow for the life of the well and would then have a right to acquire a 75% working interest , at any point prior to 31 October 2021, in all three leases, for an additional $210k.

Additionally, after the initial completion but prior to exercising the option to acquire, the company could elect to perform another re-completion, prior to 30 September 2021.

That would require a further payment of $100k in a subsequent well of its choosing, where the company would earn a 75% working interest in the that well.

'We're excited to add another opportunity to our portfolio that could have a significant impact in a very short period of time, with multiple additional opportunities to follow up at our election, while still holding further development opportunities,' chief executive Matt Lofgran said.

'The transaction is structured in a way that minimizes both risk and cash outlay further providing leverage into a larger asset.'

At 9:30am: [LON:NTOG] Nostra Terra Oil Gas Company PLC share price was +0.03p at 0.35p

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