Nostra Terra Oil & Gas Company PLC Operations Update for Second Half 2020 (6924O)
February 11 2021 - 2:00AM
UK Regulatory
TIDMNTOG
RNS Number : 6924O
Nostra Terra Oil & Gas Company PLC
11 February 2021
7.00am 11 February 2021
Nostra Terra Oil and Gas Company Plc
("Nostra Terra" or "the Company")
Operations Update for Second Half 2020
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 provide an operations update
for the second half of 2020.
Highlights
-- H2-20 net production increased by 42% over H1-20
-- H2-20 net revenue increased by 42% over H1-20
-- Cashflow positive milestone achieved in December
-- Anticipates remaining cashflow positive through 2021
-- New well at Pine Mills continues to surpass management's expectations
Production during the second half of 2020 averaged 95 bopd net
to the Company, a 42% increase over the first half of 2020
partially representing a restoration in production to
pre-curtailment levels. Revenue from oil sales during the second
half of 2020 was $591,493, also a 42% increase over the first half
of 2020. An additional $192,508 was also received from hedging
activity and equipment sales.
In December net production was 103 net bopd, when the Company
became cashflow positive. This is a significant milestone for the
Company. Since then a new well was brought into production at Pine
Mills surpassing management's expectations. The well continues to
produce in excess of 100 bopd, still limited by pump capacity and
surface equipment with no water cut, showing no decline in flow
rate or pressure since announced last month. Nostra Terra's 32.5%
working interest represents an additional 32.5 bopd before
royalties.
Nostra Terra anticipates remaining cashflow positive through all
of 2021 (assuming average WTI price of circa $40 for the year). The
Board plans to continue to further grow cashflow, production, and
reserves significantly during the year. This is expected to be
through a careful combination of continued development of existing
assets (such as the recent successful farmout with Cypress at Pine
Mills and farm-in in the Permian Basin) with other potential
acquisitions and opportunities already under consideration.
Funding for currently planned growth opportunities is expected
to be by re-investing free cashflow and using existing cash
reserves and our senior lending facility.
Matt Lofgran , Nostra Terra's Chief Executive Officer, said:
"With a strong foundation underneath us we're anticipating a
year of strong growth for Nostra Terra. The Board remains focused
and excited about delivering on its objectives throughout the
year."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014
Competent Person Disclosure
John Stafford, a Director at Nostra Terra with over 35 years'
relevant experience in the oil industry, has reviewed this
announcement for the purposes of the current Guidance Note for
Mining, Oil and Gas Companies issued by the London Stock Exchange
in June 2009. Mr. Stafford is a Fellow of the Geological Society
and a member of the Petroleum Exploration Society of Great
Britain.
For further information, contact:
Nostra Terra Oil and Gas Company
plc
Matt Lofgran, CEO Email: +1 480 993 8933
Beaumont Cornish Limited
(Nominated Adviser)
James Biddle/ Roland Cornish Tel: +44 (0) 20 7628 3396
Novum Securities Limited (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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