Project Profile
Value: US$236 million
Location: Big Horn Basin of Wyoming, USA
Area: approximately 90 square miles
Reserves: 13 million barrels of oil
Start-up Year: -
Nostra Terra acquired a 100% working interest in 6,100 net mineral acres in the White Buffalo Prospect from Ward Petroleum Corporation (Ward). The Prospect is located in the Big Horn Basin of Wyoming and comprises several targets including the proven Phosphoria Formation. Independent projections are that the prospect holds up to 20 potential locations for horizontal drilling and a recoverable potential of 13 million barrels of oil. Potential mean project value of US$118 million up to US$236 million in total based on 20 horizontal wells. The Acquisition has been funded by existing cash reserves and an existing debt facility. White Buffalo, therefore, provides a potential resource roughly 20 times the size of the successful Chisholm Trail Prospect, providing Nostra Terra with considerable flexibility to bring in partners, if desired, and maintain significant upside potential. Based on technical analysis using analogous nearby wells, the potential Original Oil in Place (OOIP) within the newly acquired 6,100 acres has been estimated to be 74.5 MMbo, or 7.8 MMbo per section (640 acres), by Haas Petroleum Engineering Services, Inc. (\"HPESI\"). As many as 75 conventional vertical wells could be drilled on the current acreage and the most likely economic recovery is projected to be 9 million barrels (PV10 US$127 million) by this at method.
The White Buffalo Prospect is close to two significant fields producing from the Phosphoria Formation, the Manderson Field (discovered in 1951) and the Cottonwood Creek Field (discovered in 1953). Each is a structural/stratigraphic trap producing from multiple horizons. Cottonwood Creek alone has produced 60 MMbo and 67 BCf from the Phosphoria Formation, the largest stratigraphic oil accumulation in the Big Horn Basin. In addition, the Muddy and Frontier Formations, above the Phosphoria, have also been productive in the area. Horizontal drilling and new multi-stage frac technology appear to be well suited for the efficient recovery of hydrocarbons from this dense, stratified, compartmentalize dolomite. The White Buffalo Prospect area is approximately 90 square miles that appear to be geologically prospective.
Operators:
Nostra Terra Oil and Gas Company plc: Operator with 100% interest
Contractors:
Haas Petroleum Engineering Services, Inc. (HPESI): Technical analysis using analogous nearby wells, for the assessment of net Prospective Resources