London-listed Nostra Terra has taken 100% interest in the permit holding the White Buffalo prospect in Wyoming for $1.2 million.
The company took a 100% stake in the acreage from Ward Petroleum, in the Big Horn basin.
It comprises several targets including the Phosphoria formation.
The company now owns, controls and operates the acreage which holds about 20 potential locations for horizontal wells.
According the company, the product value has between $118 million and $236 million total based on 20 horizontal wells.
The company said this acquisition was part of its plans to take a sizable prospect in an established basin.
“By engaging in exploration, the company benefits from much lower lease acquisition costs whilst gaining exposure to relatively low risk prospective resources and near term production potential,” the company said.
Nostra Terra said its shared the area with operators such as Devon Energy and SM Energy, which are both targeting the Phosphoria formation.
Based on nearby drilling, the company says there could be potential oil in place of about 74.5 million barrels of oil. This is based on information from Haas Petroleum Engineering Services.
As many as 75 wells could be drilled on the acreage to target this potential.
Chief executive Matt Lofgran said this was part of a campaign by the company to gain upside.
“The resources we're targeting currently range from $118 million to $236 million based on horizontal drilling and fraccing,” he said.
“This should demonstrate to current and prospective shareholders the significant potential increase in scale for the company.”