NTOG Nostra Terra Oil And Gas Company Plc

29 January 2025

Nostra Terra Oil and Gas Company Plc

("Nostra Terra" or "the Company")

3-Year Renewal of Senior Lending Facility

Nostra Terra (AIM: NTOG), the international oil & gas exploration and production company with a portfolio of production and development assets in Texas, USA, is pleased to announce that its US$10 Million Dollar Senior Lending Facility ("Senior Facility" or "Facility") with WAFD Bank ("WAFD"), formerly Washington Federal Savings and Loan, has been renewed for 3 years until 29 January 2028.

Paul Welch, Nostra Terra's Chief Executive Officer, said:

"We're pleased to continue to deliver significant improvements in production and cash flows, which is reflected in a 3-year extension of our senior lending facility. This gives us significant financial flexibility to continue to grow production with the headroom to increase our borrowing base with increasing cashflow and reserves."

Highlights

Senior Facility

· Borrowing Base of $4,250,000

· Interest Rate: currently 7.50% being 3% above the Federal Funds rate 

WAFD Bank Valuation

· Future Net Income: $22,705,540

· NPV10: $9,843,520

Senior Facility & Corporate Valuation

The size of the Facility and Borrowing Base will continue to be reassessed at least twice yearly. The Board anticipates that the Facility and Borrowing Base will continue to expand as the Company's production, cashflows, and reserves increase. The current interest rate on the facility is 7.50%, being a premium of 3% Federal Funds Rate. The Facility is not restricted to any geographical region and can expand further with the acquisition or development of other producing assets.

Asset Valuation

WAFD has updated its borrowing base using a report from a third-party engineering firm, APN Energy ("APN"), effective 1 December 2024. APN prepared the report for the Company to submit to WAFD. This report was based on asset performance when it was completed, which was prior to most of the recent work-over results.

Assets included in the borrowing base are as follows:

Future Net Income attributable to the Company's interest, as determined by WAFD, using the price deck listed below is after deducting estimated future operating and development costs, production and ad valorem taxes, but before Federal income taxes.

 Future revenues were estimated using an oil price (WTI) forecast supplied by the lender which follows:

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

For further information, contact:

Technical Glossary

$ - US Dollar

bbl - barrel

Borrowing Base - the amount of money that a lender is willing to loan a company, based on the value of the collateral the company pledges.

Future Net Income or FNI - the  projected   Gross Revenues   expected  to be  realised by the Company  during the productive life of the asset less the sum of the Operating Costs payable.