REG - Nostra Terra O&G Co - 3-Year Renewal of Senior Lending Facility

Nostra Terra Oil and GasAnnouncement

29/01/2025 07:00

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RNS Number : 0139V  Nostra Terra Oil & Gas Company PLC  29 January 2025

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:

 

 Asset                         Operator  NTOG Interest (%)  Status                     Lease expiration  Total Acres (gross)
 Pine Mills                    NTOG      100%               Producing and Development  HBP               2,320
 Pine Mills (Cypress farmout)  Cypress   32.5%              Producing and Development  HBP               160
 Permian Basin                 NTOG      53%                Producing and Development  HBP               160

 

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.

 

  Category                       Future Net Income (USD)  Net Present Value

                                                          10% Discount Rate (USD)
 Proved Developed Producing      $14,900,000              $6,266,450
 Proved Developed Non-Producing    $6,066,410             $3,065,320
 Proved Undeveloped                 $1,739,130            $511,750
 Total Proved                    $22,705,540              $9,843,520

 

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

 

 Year                        Oil ($/bbl)
 2024                        $65.50
 2025                        $63.75
 2026                        $62.50
 2027                        $61.25
 2028                        $60.75
 3% Price Escalation to Cap  $70.00 CAP

 

 

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         Email:           paul@ntog.co.uk

 Paul Welch, CEO

 SP Angel Corporate Finance LLP               Tel:             +44 (0) 20 3470 0470

 (Nominated Adviser and Broker)

 Stuart Gledhill / Richard Hail / Adam Cowl

 Celicourt Communications (PR/IR)             Tel:   Email:    +44 (0) 20 7770 6424

NTOG@celicourt.uk
 Mark Antelme / Jimmy Lea

 

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
(https://www.lawinsider.com/dictionary/realized) realised by the Company
 during the productive life of the asset less the sum of the Operating Costs
payable.

 

Gross - total quantity or amount.

 

HBP - Held by Production.

 

Net - quantity or amount associated with Nostra Terra's interest.

 

Net Present Value or NPV - the difference between the present value of cash
inflows and the present value of cash outflows over a period of time.

 

WTI - West Texas Intermediate crude oil benchmark price in $/bbl.

 

 

 

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