Nostra Terra Oil & Gas Company PLC Positive Oil Price Impact (6222I)
December 15 2020 - 1:00AM
UK Regulatory
TIDMNTOG
RNS Number : 6222I
Nostra Terra Oil & Gas Company PLC
15 December 2020
7.00am 15 December 2020
Nostra Terra Oil and Gas Company Plc
("Nostra Terra" or "the Company")
Positive Oil Price Impact
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 note the recent significant
improvement in oil commodity price and its positive impact on the
Company's drive to become cashflow positive.
Over the past month WTI oil price has increased from around $40
per barrel to $45 per barrel which, on its own, materially enhances
cashflow for Nostra Terra. The increase follows announcements that
positive trial results have been achieved for vaccines against the
Covid-19 virus.
As stated on 30 October 2020, Nostra Terra's focus is very much
on increasing cashflow through assets with lasting reserves.
Covid-19 has had a very negative impact on the global economy and
consequently on oil prices. The average WTI oil price during the
first half of 2020 was US$25.45, per barrel (compared to US$57.39
in 2019).
In addition, during 2020 Nostra Terra made substantial
reductions in corporate overhead as well as in lifting costs for
its producing assets. As previously announced, some production was
temporarily suspended during the period of lower oil prices in
order to conserve capital. Those wells have now been put back
online and production is back above pre-curtailment levels. We
intend to announce production figures from H2-2020 in January.
Completion of the Cypress well at Pine Mills, where the majority of
Nostra Terra's interest is carried by the farminee, is also
underway and we anticipate updating on it shortly.
Matt Lofgran , Nostra Terra's Chief Executive Officer, said:
"Given the relatively fixed cost base (both corporate and in the
field), the increase in oil prices from $40 to $45 has a
significant impact on margins and cashflow to Nostra Terra. This in
turn positively affects the value of our reserves and consequently
our Senior Lending Facility, which provides capital that can be
used for further acquisitions and drilling.
We're finishing the year in a much, much stronger position than
we started it. The Company, as planned, made significant reductions
in corporate overhead and brought lifting costs down further. The
significance being that any additional production will have that
much more positive an impact."
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
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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