Operations Update for Second Half 2020

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:	[phone]
Beaumont Cornish Limited (Nominated Adviser) James Biddle/ Roland Cornish	Tel:	[phone]
Novum Securities Limited (Broker) Jon Belliss Lionsgate Communications (Public Relations) Jonathan Charles	Tel: Tel:	[phone] [phone]

 

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