TIDMNTOG
RNS Number : 9069N
Nostra Terra Oil & Gas Company PLC
28 September 2023
28 September 2023
Nostra Terra Oil and Gas Company PLC
Interim Results for the six months ended 30 June 2023
Nostra Terra (AIM: NTOG), the oil and gas exploration and
production company with a portfolio of assets in the USA, is
pleased to announce its unaudited results for the six-month period
ended 30 June 2023. A copy of the Interim Results is available on
the Company's website, www. ntog.co.uk .
Financial Highlights
-- $1,472,000 Revenue for the period (30 June 2022: $2,003,000)
-- $530,000 Gross profit from operations for the period (30 June 2022: $1,203,000 profit)
-- $481,000 profit before non-cash items (depletion, depreciation, amortisation, and interest)
-- $48,000 profit for the period (30 June 2022: $203,000 loss)
-- 21,023 barrels of oil total production for the period (30 June 2022: 20,383 barrels of oil)
-- Borrowing increased to $4,203,000, an increase of $317,000 vs. 31 December 2022
Post-period events:
-- Favourable ruling regarding Fouke Wells increasing the
production limit to 126 bopd per well (50%+) as announced on 30
August 2023
Chairman's report
The first six months of 2023 have been a period of consolidation
and prudent progress for Nostra Terra Oil & Gas.
In the wider world, the war in Ukraine continued, though the
global pandemic crisis has finished with the end of lockdowns in
China. This was supposed to release pent-up demand for energy in
China as their economy fired back up. It has yet to happen for a
variety of reasons. However, a global increase in energy demand and
continuing effects from the war mean that the WTI spot benchmark
price has strengthened to around $90 per barrel at the time of
writing.
The Company continued to take advantage of these relatively high
oil prices throughout the period to concentrate on optimising
production from our existing producing wells. Toward that end, a
further four workovers at Pine Mills were carried out to continue
supporting production volumes and revenues.
Despite some well-specific operational issues, Nostra Terra
produced an operating profit for the period of $176,000 ($48,000
after financing costs).
In March 2023, Jeffrey Henry LLP was replaced by MAH as the
Company's auditors. Jeffrey Henry no longer had sufficient capacity
to service Nostra Terra and many others of its clients' needs, and
so had to withdraw from providing audit services to several
companies.
Post period, in August 2023, the Texas Railroad Commission (as
regulator) approved the operator's request for an increase in the
allowable field rate from 82 bopd to 126 bopd each for the Fouke #1
and Fouke #2 wells. This significantly increased the cap on the
production rate from the Company's two currently most productive
wells, removing a regulatory brake on our potential revenue
stream.
I would like to thank our shareholders again for their support
over the last six months.
Dr Stephen Staley
Chairman
28 September 2023
Chief Executive Officer's report
We had a strong first half of the year. Our focus has been on
increasing cash flow. This was achieved by maintaining production
levels and keeping operating costs low.
Revenue was robust at $1,472,000 for the period (30 June 2022:
$2,003,000). Gross profit from operations for the period was
$530,000 (30 June 2022: $1,203,000 profit). Average oil sales
prices during the period were $70.04 per barrel (30 June 2022:
$98.28), and average production was 116 bopd (2022: 112 bopd)
At the beginning of 2022, the Fouke 2 (32.5% WI) well was
drilled and put into production. The well was then tested and
flowed at a rate of 145 bopd over a 24-hour period with 0% watercut
and placed into continuous production. This production rate
exceeded that of the offset Fouke 1 well by 77% because the Fouke 1
had been limited by field rules ("allowable") to 82 bopd per well.
As a result of the past performance of the Fouke 1 and the test
rate of the Fouke 2, the operator requested a substantial increase
in the field allowable rate so that both wells could be produced at
higher and more efficient rates. The hearing took place in March
2023, with the final order granting the proposed changes being
approved in August 2023.
Due to the excellent returns from these wells, Nostra Terra
continues to look for similar opportunities in the Company's 100%
working interest acreage in Pine Mills. We have let our application
for Tunisian acreage lapse for now but maintain good relations with
the authorities there and may recommence the process in due course.
Additionally, the Company continues actively seeking and assessing
new opportunities within the US and abroad.
I wish to extend a sincere thank you to our shareholders for
your continued support, and I look forward to updating you as we
continue to grow our Company.
Matt Lofgran
Chief Executive Officer
28 September 2023
For further information, visit www.ntog.co.uk
or contact:
Nostra Terra Oil and Gas Company
plc
Matt Lofgran, CEO +1 480 993 8933
Beaumont Cornish Limited
(Nominated Adviser) +44 (0) 20 7628 3396
James Biddle / Roland Cornish
Novum Securities Limited (Broker) +44 (0) 207 399 9425
Jon Belliss
Nostra Terra Oil and Gas Company plc
Consolidated Income Statement
for the six months ended 30 June 2023
Unaudited Unaudited Audited
Six months Six months Year to
to to 31 December
30 June 30 June 2022
2023 2022
Note $'000 $'000 $'000
------------------------------ ----- ---------------- ---------------- -------------
Revenue 1,472 2,003 4,021
Cost of sales
Production Costs (647) (581) (1,779)
Well impairment - - (897)
Depletion, depreciation,
amortisation (295) (219) (539)
---------------- ---------------- -------------
Total cost of sales (942) (800) (3,215)
---------------- ---------------- -------------
GROSS PROFIT 530 1,203 806
Exploration costs written - (813) -
off
Share based payment (40) (80) (156)
Administrative expenses (319) (478) (1,074)
Foreign exchange (loss)/gain 5 (25) 26
---------------- ---------------- -------------
OPERATING PROFIT/ (LOSS) 176 (193) (398)
Finance costs (138) (49) (199)
Other income 10 39 51
---------------- ---------------- -------------
INCOME/ (LOSS) BEFORE TAX 48 (203) (546)
Income tax - - -
---------------- ---------------- -------------
INCOME/ (LOSS) FOR THE
PERIOD 48 (203) (546)
Attributed to:
Owners of the company 48 (203) (546)
---------------- ---------------- -------------
Earnings per share expressed
in cents per share:
Continued Operations
Basic (cents per share) 3 0.006 (0.03) (0.07)
---------------- ---------------- -------------
Diluted (cents per share) 3 0.005 (0.03) (0.07)
---------------- ---------------- -------------
The Group's operating profit or loss arose from continuing
operations.
There were no recognised gains or losses other than those
recognised in the income statement above.
Nostra Terra Oil and Gas Company plc
Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2023
Unaudited Unaudited Audited
Six months Six months Year to
to to 31 December
30 June 30 June 2022
2023 2022
---------------------------------- ------------- ---------------- ---------------- -------------
$'000 $'000 $'000
---------------------------------- ------------- ---------------- ---------------- -------------
INCOME (LOSS) FOR THE PERIOD
Other comprehensive income: 48 (203) (546)
Currency translation differences 6 - - -
Total comprehensive income
for the period 48 (203) (546)
------------------------------------------------- ---------------- ---------------- -------------
Total comprehensive income
attributable to:
Owners of the company 48 (203) (546)
------------------------------------------------- ---------------- ---------------- -------------
Nostra Terra Oil and Gas Company plc
Consolidated Statement of Financial Position as at 30 June
2023
Unaudited Unaudited Audited
As at 30 As at 30 As at 31
June June December 2022
2023 2022
Note $'000 $'000 $'000
----------------------------- ----- -------------- ------------- ---------------
ASSETS
Non-current assets
Intangible assets 2,519 2,328 2,224
Property, plant and
equipment
- oil and gas assets 1,215 1,119 1,308
3,734 3,447 3,532
Current assets
Trade and other receivables 571 650 558
Deposits and prepayments 64 16 66
Cash and cash equivalents 125 114 132
-------------- -------------
760 780 756
-------------- ------------- ---------------
LIABILITIES
Current liabilities
Trade and other payables 761 1,153 1,051
Borrowings 164 273 94
925 1,426 1,145
-------------- ------------- ---------------
NET CURRENT LIABILITIES (165) (646) (389)
Non-current liabilities
Decommissioning liabilities 361 321 340
Borrowings 4,203 3,295 3,886
4,564 3,616 4,226
-------------- ------------- ---------------
NET LIABILITIES (995) (815) (1,083)
============== ============= ===============
EQUITY AND RESERVES
Share capital 4 8,142 8,142 8,142
Share premium 22,115 22,115 22,115
Translation reserve (676) (676) (676)
Share option reserve 463 386 423
Retained losses (31,039) (30,782) (31,087)
-------------- ------------- ---------------
(995) (815) (1,083)
============== ============= ===============
Nostra Terra Oil and Gas Company plc
Consolidated cash flow statement
For the six months ended 30 June 2023
Unaudited Unaudited Audited
Six months Six months Year to
to 30 June to 31 December
2023 30 June 2022 2022
Notes $'000 $'000 $'000
------------------------------------- ------ ----------- ------------- ------------
Cash flows from operating
activities
Operating income (loss) for
the period 48 (203) (546)
Adjustments for:
Depreciation of property,
plant and equipment 154 113 299
Amortisation of intangible
assets 121 87 202
Exploration costs written
off - 813 -
Well impairment - - 897
Depletion 21 19 38
Other Income (10) (39) (51)
Foreign exchange (5) 25 26
Share based payment 40 80 156
Operating cash flows before
movements in working capital 369 895 1,021
(Increase) /decrease in receivables (13) (302) (211)
(Decrease)/increase in payables (295) 208 105
(Increase)/decrease in deposits
and prepayments 2 - (50)
Interest paid 138 49 199
Net cash generated by operations 201 850 1,064
Cash flows from investing
activities
Purchase of intangible assets (416) (1,214) (1,318)
Purchase of plant and equipment (64) (345) (719)
Disposals 2 30 40
Increase in decommissioning
liabilities 21 19 38
----------- ------------- ------------
Net cash from investing
activities (457) (1,510) (1,959)
----------- ------------- ------------
Cash flows from financing
activities
Proceeds from issued share
capital - 194 194
Net borrowing 387 591 1,003
Finance costs (138) (49) (199)
Lease payments - (7) (16)
----------- ------------- ------------
Net cash from financing
activities 249 729 982
----------- ------------- ------------
Increase/(decrease) in cash
and cash equivalents (7) 69 87
Cash and cash equivalents
at the beginning of the period 132 45 45
----------- ------------- ------------
Cash and cash equivalents
at the end of the period 125 114 132
=========== ============= ============
Nostra Terra Oil and Gas Company plc
Consolidated Statement of Changes in Equity
For the six months ended 30 June 2023
Share Deferred Share Share Translation Retained Total
capital shares premium option reserve losses
reserve
$'000 $'000 $'000 $'000 $'000 $'000 $'000
-------------- -------- -------- -------- -------- ----------- -------- -------
As at 1
January 2023 1,593 6,549 22,115 423 (676) (31,087) (1,083)
-------------- -------- -------- -------- -------- ----------- -------- -------
Income for
the period - - - - - 48 48
Share based
payments - - - 40 - - 40
-------------- -------- -------- -------- -------- ----------- -------- -------
As at 30
June 2023 1,593 6,459 22,115 463 (676) (31,039) (995)
-------------- -------- -------- -------- -------- ----------- -------- -------
Share Deferred Share Share Translation Retained Total
capital shares premium option reserve losses
reserve
$'000 $'000 $'000 $'000 $'000 $'000 $'000
----------------- -------- -------- -------- -------- ----------- -------- -----
As at 1
January 2022 1,538 6,549 21,976 306 (676) (30,579) (886)
----------------- -------- -------- -------- -------- ----------- -------- -----
Loss for
the period - - - - - (203) (203)
Shares issued,
net of expenses 55 - 139 - - - 194
Share based
payments - - - 80 - - 80
----------------- -------- -------- -------- -------- ----------- -------- -----
As at 30
June 2022 1,593 6,549 22,115 386 (676) (30,782) (815)
----------------- -------- -------- -------- -------- ----------- -------- -----
Share Deferred Share Share Translation Retained Total
capital shares premium option reserve losses
reserve
$'000 $'000 $'000 $'000 $'000 $'000 $'000
----------------- -------- -------- -------- -------- ----------- -------- -------
As at 1
January 2022 1,538 6,549 21,976 306 (676) (30,579) (886)
----------------- -------- -------- -------- -------- ----------- -------- -------
Loss for
the year - - - - - (546) (546)
Shares issued,
net of expenses 55 - 139 - - - 194
Expired options
& warrants - - - (38) - 38 -
Share based
payments - - - 155 - - 155
----------------- -------- -------- -------- -------- ----------- -------- -------
As at 31
December
2022 1,593 6,549 22,115 423 (676) (31,087) (1,083)
----------------- -------- -------- -------- -------- ----------- -------- -------
Nostra Terra Oil and Gas Company plc
Notes to the interim report
For the six months ended 30 June 2023
1. General Information
Nostra Terra Oil and Gas Company plc (Nostra Terra) is a company
incorporated in England and Wales and quoted on the AIM market of
the of the London Stock Exchange (ticker: NTOG). The principal
activity of the group is disclosed as described in the report
Chairman's statement and Chief Executive Officer's Report.
2. Basis of preparation
The consolidated interim financial information for the 6 months
to 30 June 2023 has been prepared in accordance with the
measurement and recognition principles of UK adopted international
accounting standards and accounting policies that are consistent
with the Group's Annual report and Accounts for the year ended 31
December 2022 and that are expected to be applied in the Group's
Annual Report and Accounts for the year ended 31 December 2023.
They do not include all of the information required for the full
financial statements and should be read in conjunction with the
2022 Annual Report and Accounts which were prepared in accordance
with UK adopted international accounting standards.
The comparative financial information for the year ended 31
December 2022 in this interim report does not constitute statutory
accounts for that period under section 435 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2022 have
been reported on by the Group's auditors and delivered to the
Registrar of Companies. The report of the auditors contained a
"material uncertainty related to going concern" paragraph but the
auditor's report did not contain any statement under section 498 of
the Companies Act 2006.
Going concern
The consolidated interim financial information has been prepared
on the assumption that the Group is a going concern. When assessing
the foreseeable future, the directors have looked at a period of 12
months from the date of approval of this report.
The Group's forecasts and projections, taking account of
reasonable possible changes in trading performance, show that the
group should be able to operate within the level of its current
cash resources, however a material uncertainty exists in relation
to the Group's ability to repay its liabilities as they become due.
We note that as at the balance sheet date, the Group has net
current liabilities of $165k and net liabilities of $995k.
After making enquiries, the directors have a reasonable
expectation that the Company and Group have adequate resources to
continue in operational existence for the foreseeable future. They
continue to adopt the going concern basis in preparing the
consolidated interim financial information, however as noted above
a material uncertainty exists which may cast significant doubt on
the Group's ability to continue operating as a going concern.
3. Earnings/(loss) per share
The calculation of earnings per ordinary share is based on
earnings after tax and the weighted average number of ordinary
shares in issue during the period. For diluted earnings per share,
the weighted average number of ordinary shares in issue is adjusted
to assume conversion of all dilutive potential ordinary shares. The
group had two classes of dilutive potential ordinary shares, being
those share options granted to employees and suppliers where the
exercise price is less than the average market price of the group's
ordinary shares during the year, and warrants granted to directors
and one former adviser.
Unaudited Unaudited Audited
Six months Six months Year to
to to 31 December
30 June 30 June 2022
2023 2022
Income (loss) per ordinary
shareholders ($000) 48 (203) (546)
Weighted average number
of ordinary shares 746,520,534 718,736,004 732,742,452
Basic (cents per share) 0.006 (0.04) (0.07)
Diluted (cents per share) 0.005 (0.04) (0.07)
------------ ------------ -------------
4. Share Capital
The issued share capital as at 30 June 2023 was 746,520,534
ordinary shares of 0.1p each (31 December 2022: 746,520,534; 30
June 2022: 746,520,534).
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END
IR VDLFLXKLBBBB
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