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Nostra Terra O&G Co (NTOG)

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Tuesday 31 July, 2018

Nostra Terra O&G Co

Senior Lending Facility and Operational Update

RNS Number : 2355W
Nostra Terra Oil & Gas Company PLC
31 July 2018
 

31 July 2018

 

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

 

Increase of Senior Lending Facility and Operational Update

 

Nostra Terra (AIM:NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, is pleased to announce a significant increase of the borrowing base of its Senior Lending Facility ("the Facility") with Washington Federal Bank.

 

Nostra Terra has been granted an increase of $750,000 on its borrowing base, immediately available for use. As previously announced (31 Jan 2018), the Facility size is US$5million and the initial borrowing base was US$1.2million, which has now been increased to US$1.95 million.

 

The redetermination was calculated based on production as of 01 May 2018 and was based solely on oil production at Pine Mills. The Company's production in the Permian Basin has yet been factored into the borrowing base calculation, nor have the recently announced production increases at Pine Mills. As such, Nostra Terra expects a further positive increase at the next redetermination.

 

As previously announced, Nostra Terra's strategy in the Permian Basin is to grow oil production across its portfolio of assets, primarily using non-dilutive funds from the Facility.

 

Operational Update

 

The completion process of the G6 well, at the Company's Mitchell County License in the Permian Basin, continues. Commercial production has been initiated and Nostra Terra will provide a production update from its Permian Basin assets shortly, once stabilised rates can be reported.

 

Nostra Terra is also finalising its plans for further drilling in the second half of this year and will provide an update to the market on this in the coming weeks.

 

Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:

 

"We are delighted at our progress this year and the increase in the size of borrowing base of the Facility is testament to the resources we have invested in developing our current portfolio. Being cashflow positive at the PLC levels also means that any funds used from the Facility can go towards drilling new wells to continue our growth."

 

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

 

For further information, visit www.ntog.co.uk or contact:

 

Nostra Terra Oil and Gas Company plc

Matt Lofgran, CEO

 

Tel:

+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

Smaller  Company Capital Limited (Joint Broker)

Rupert Williams / Jeremy Woodgate

Tel:

+44 (0) 20 3651 2910

 

 

 

 


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