Nostra Terra Oil & Gas Company PLC Completion of Acquisition and Interim Reporting (6820Y)
September 11 2020 - 2:00AM
UK Regulatory
TIDMNTOG
RNS Number : 6820Y
Nostra Terra Oil & Gas Company PLC
11 September 2020
11 September 2020
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Completion of Acquisition and Interim Reporting
Nostra Terra (AIM: NTOG), the oil & gas exploration and
production company with a portfolio of development and production
assets in Texas, USA, is pleased to announce, further to its RNS on
2 September 2020, that it has completed the acquisition of a 100%
Working Interest ("WI") in the Caballos Creek Oil Field, which is
located in Atascosa County Texas.
Highlights
-- Acquisition completed in one month from asset identification
-- Financed 100% without dilution
-- Immediately accretive in terms of cashflow and production
-- 30 bopd current production (gross), which increases Company-wide production by circa 25%
-- Additional acquisitions being assessed
Acquisition Completed
As previously announced on 2 September 2020, Nostra Terra
entered into a contract to acquire 100% WI in the Caballos Creek
oil field, a producing asset in Atascosa County Texas. The
acquisition has now been completed and Nostra Terra has taken over
operations of the field.
Nostra Terra will be performing work to further assess
additional upside in the field. This will include: review of well
files (particularly well interventions and production records),
review of logs, depth structure mapping on key reservoirs,
identifying locations for additional drilling, calculating net pay
and volumes, and other associated activities. Following this,
reservoir and production engineering aspects will be reviewed with
the target of updating the reserves and economics and determining
the extent and relative rank of the upside opportunities.
The acquisition of this asset is consistent with Nostra Terra
continuing to execute on its stated plan. As previously described,
the acquisition delivers further expansion and diversification of
the portfolio, conventional producing assets, with relatively low
operating costs.
Additional Acquisitions
Nostra Terra is seeking to make further accretive acquisitions
at this time, targeting assets with proven reserves (primarily
producing), with a view to increasing cash flow immediately. As
demonstrated by this acquisition, the Company is able to evaluate
assets and close transactions quickly, using debt and equity.
In this regard, the Board continues to evaluate and progress
numerous opportunities of different scales, consistent with the
experience of the Directors, both inside and outside the USA. The
current oil price environment provides opportunities for
acquisitions at attractive valuations, and licensing of assets with
significant upside potential.
Interim Accounts Publication
In line with the guidance issued by AIM Regulation in an Inside
AIM notification dated 9 June 2020, and the ongoing COVID-19
related disruption to processes, the Company is availing of the one
month extension to the date by which it is required under AIM Rule
18 to publish its interim accounts for the six months ended 30 June
2020. Accordingly, the Company is required to publish its 2020
interim accounts by 31 October 2020.
Matt Lofgran , Nostra Terra 's Chief Executive Officer,
said:
"Nostra Terra has acquired another asset that is immediately
accretive, adding significant cash flow to the Company, achieved
with non-dilutive financing. The Board is planning further growth
in a similar fashion during the remainder of the year. We look
forward to providing further updates in the future."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014
For further information, contact:
Nostra Terra Oil and Gas Company
plc
Matt Lofgran, CEO Email: +1 480 993 8933
Strand Hanson Limited
(Nominated & Financial Adviser and
Joint Broker)
Rory Murphy / Ritchie Balmer / Jack
Botros Tel: +44 (0) 20 7409 3494
Novum Securities Limited (Joint
Broker)
Jon Belliss
Tel: +44 (0) 207 399 9425
Lionsgate Communications (Public
Relations)
Jonathan Charles Tel: +44 (0) 7791 892509
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END
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